This survey is conducted annually and provides an insight into the development of treasury management and the impact IAS 39 is having on organisations. The findings range across treasury reporting, performance measurement and benchmarks, risk management with a special section on IAS 39, the international accounting standard on financial instruments.
IAS 39 remains an important issue for many corporate treasurers. Whilst substantial progress has been made by almost all respondents and the level of knowledge and experience with the standard continues to grow, IAS 39 is still regarded fairly sceptically by a large proportion of respondents.
The number of responses to the 2005 survey was 51, similar to previous surveys. Since the last survey there has been an increase in the proportion of UK treasuries reporting to overseas head offices. Much of this can be attributed to a change in the respondent mix. However, the general profile of respondents, their size and volume of treasury activities, remains generally consistent with previous surveys.
In addition to aggregate data, analysis relating to the size and scope of respondents has been undertaken, to reflect the different environments faced by treasuries in large and small organisations. In many cases responses were similar across the spectrum, but where there is a significant difference in responses, this has been noted and outlined in the body of the survey.
The survey was conducted by Ernst & Young’s Financial Services Risk Management practice in conjunction with the Association of Corporate Treasurers (ACT). It followed on from the successful 2003 survey.
The survey’s aim was to allow treasurers to benchmark themselves against other treasuries and to gain an insight into the impact IAS 39 is having on other organisations. Interestingly, given the breadth of respondents and the variety of issues effecting treasurers, there were some interesting themes highlighted by the survey.
The survey was conducted by Ernst & Young’s Financial Services Risk Management practice in conjunction with The Association of Corporate Treasurers (ACT).
In this survey we invited members of the ACT to respond with an assessment of the current state of treasury operations in their organisation. The objective was to provide a reference point against which organisations can assess their own situation. The number and breadth of the responses we have received persuade us that the results contained in this report will indeed provide a useful reference point.
