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ACCA Strategic Professional · Advanced Financial Management · The role of the treasury function in multinationals

Which of the following activities is normally a function of the treasury department in a multinational, as opposed to the responsibility of the financial controller?

Netting and matching intragroup foreign currency flows is a treasury function, because it manages currency exposure, liquidity and transaction costs. Preparing consolidated accounts, statutory accounts and tax charge calculations belong to financial control or tax departments, not treasury.

  1. APreparing the consolidated financial statements
  2. BNetting and matching intragroup foreign currency cash flows to reduce exposure and transaction costsCorrect
  3. CCalculating the group's current tax charge for the financial statements
  4. DProducing statutory financial statements for each subsidiary

Explanation

Treasury manages funding, liquidity and financial risk, including multilateral netting and matching of intragroup currency flows. Consolidation, tax charge calculation and statutory accounts are financial control or tax responsibilities.

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