AASB 107 Statement of Cash Flows 25-28: Translate foreign currency cash flows at the rate on the date of the flow, translate foreign subsidiaries' flows at transaction-date rates, and show the exchange effect on cash held separately

What does 25-28 require?

A cash flow in a foreign currency is recorded in the functional currency at the exchange rate ruling when the flow occurs, and a foreign subsidiary's cash flows are translated at the rates on the dates of those flows. Consistent with AASB 121 an approximating rate, such as a period weighted average, may be used, but the closing rate may not be used to translate a subsidiary's cash flows. Unrealised exchange gains and losses are not cash flows; the exchange movement on foreign currency cash balances (held or receivable) is shown as a separate reconciling item outside the three activity groups so that opening and closing cash reconcile, and it includes the differences that would have arisen had the flows been reported at closing rates.