6 The treasury function. ABC plc is a UK-based service company with a number of wholly-owned subsidiaries and interests in associated companies throughout the world. In response to the rapid growth of the company, the Managing Director has ordered a review of the company’s organisation structure, particularly the finance function. The Managing Director holds the opinion that a separate treasury department should be established. At present, treasury functions are the responsibility of the Chief Accountant.
Describe the main responsibilities of a treasury department in a company such as ABC plc and explain the benefits which might accrue from the establishment of a separate treasury function.