How should ICMR reporting be designed to benefit stakeholders?

• A. By being overly complex and detailed
• B. By being generic and broad in scope
• C. By including tailored metrics and formats
• D. By providing minimal information

Answer: (C)

ICMR reporting should be designed to include tailored metrics and formats to effectively benefit stakeholders. This customization is essential because stakeholders often have diverse interests, needs, and expectations regarding intercompany transactions. By incorporating specific metrics that are relevant to the businesses involved, stakeholders can gain clearer insights into reconciliation processes and identify discrepancies more efficiently.

Moreover, tailored formats allow for more straightforward interpretation of data, ensuring that the information presented is actionable and directly aligns with respective business goals. This targeted approach enhances transparency, fosters better communication among subsidiaries, and supports strategic decision-making, ultimately leading to improved financial and operational performance. By addressing the specific requirements of each stakeholder, the reporting process becomes a valuable tool for fostering collaboration and accountability within the organization.