The Handbook to IFRS Transition and to IFRS U.S. GAAP Dual Reporting

5.5.10.5 Certain Cash Flows of Financial Institutions

Finally, a financial institution (under U.S. GAAP, a bank, a saving institution, and a credit union) may also report cash flows relating to time deposits (i.e., under IFRSs, with fixed maturity date), inter-banking accounts (and, under IFRSs, customer cash advances), and loans to customers and their repayment on a net basis. Section 230-10-45 (FASB Statement No. 95) adds that a consolidated statement of cash flows must indicate these net flows separately from any other gross flows.260 This accommodation does not extend to insurance, finance companies, and other intermediaries.261

Planning Point: The accounting pronouncements mentioned in the situations discussed so far consider net reporting an acceptable option, but do not require it.

In addition, under U.S. GAAP, nonregistered investment partnerships must report gross amounts of payments for purchase and proceeds from sale or maturities of long-term investments, unless they otherwise qualify for net reporting. Conversely, they may report net amounts for short-term investments. They must separate presentation of proceeds and costs for short and long positions.262

Exhibit 5-6 and Exhibit 5-7 also show which of the items reported net are investing and which are financing activities.

Planning Point: U.S. GAAP illustrates the net change in demand deposits, time deposits, and savings accounts of a financial institution in financing activities, while net change in credit ...