Home › Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA Advanced Financial Management (AFM) Exams › Wardegul co sept dec 2017
- February 5, 2020 at 9:10 pm
Sir in part b they have asked advantages of treasury activities through regional treasury functions …are they asking advantages of centralized treasury department?
And asked to compare with each country having separate treasury function and operating through single global treasury function ….whats the difference between regional treasury and global treasury function…February 6, 2020 at 8:19 am
There are three ways that they could organise the treasury function:
1. Have a separate treasure function for companies in each individual country
2. Have a separate treasury function for companies in each separate region (e.g. one for all countries in Europe, one for all countries in Africa, etc.)
3. Have just one treasury function for companies in all countries in the world.February 6, 2020 at 9:07 am
So in the qs above they are asking about benefits of regional treasury function as compared to the global one ..? Can u please explain.some of them or is there any lecture regarding this topic ?February 6, 2020 at 9:30 am
No – the question specifically asks you to discuss the advantages of (a) having a separate treasury function for each country as compared with a separate one for each region, and (b) having a global treasure function as compared with a separate one for each region.
There are lectures explaining the treasury function, although the examiners own answer to this question explains the advantages of each very well.February 6, 2020 at 7:09 pm
Why is it in question a) ii. Futures Contract in the BPP answer kit, in order to get the gain/loss in the futures market for increased interest rate, the answer given was
(0.9436-0.9478) x D500,000 x 3/12 x 90.
I dont understand where they get the 3/12?February 7, 2020 at 7:50 am
They are 3 months futures (and are always 3 month futures in the exam) and therefore we always multiply by 3/12.
I do explain this in detail in my free lectures on interest rate risk management.
You must be logged in to reply to this topic.