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Treasury function

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Treasury function

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • December 14, 2023 at 9:08 am #696762
    Diksha.19
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    In case of decentralised treasury function does all the companies in a group have separate treasury department? Or a separate treasury department is only there in a centralised treasury function?

    December 14, 2023 at 10:06 am #696770
    John Moffat
    Keymaster
    • Topics: 57
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    • ☆☆☆☆☆

    When decentralised then each company will have its own treasury function, whereas if centralised there is just one treasure function for the whole group.

    Centralised is generally regarded as being a better approach because (for example) they can pool together foreign currency dealings in the separate group companies and benefit from better exchange rates; also they can pool together the depositing of spare cash in individual companies and so potentially get better interest rates.

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