Glossar

Cost centre treasury is a type of governance in which the costs of the treasury department can be charged to the various other departments/subsidiaries on some basis that is seen to fairly reflect the benefits the other department/subsidiary obtains from the treasury department and the use it makes of the treasury services. If it is not possible to allocate costs on a basis that is seen to be fair, the company may simply treat the costs as a head office expense. The alternative is to organise treasury operations as a profit centre. This can be done if revenues arising from treasury can be identified. Revenues could be properly recognised.