Sunbridge Shareholders, page-192

The cash flows are prepared based on the cash that is held within the entity at the end of the period.

If subsidiaries are fully owned then their bank accounts need to be consolidated into the parents for all reporting purposes. The 4c should show the total cash under control of the company at the reporting date. In this case, 30 June for the half yearly.

In order to have the bank balance in their accounts match the bank balance in the bank, they would need to reconcile the interest payments to the accounts. This would be required for all bank accounts controlled by the group.

Reporting and recognition requirements can explain differing treatment of profit and loss/balance sheet items, but cash in and out is concrete. It is either received or not. Which is why the change in cash flow statement numbers is concerning. If it were accrued income it would not be present in the cash flow statement for the period.