Which aspect is NOT a function of ICMR related to currency?

• A. Conducting currency conversions
• B. Tracking exchange rate variances
• C. Setting fixed prices for intercompany sales
• D. Managing currency differences

Answer: (C)

Setting fixed prices for intercompany sales is not a function of ICMR related to currency. The primary focus of ICMR involves managing the reconciliation processes for intercompany transactions, which include handling currency aspects such as conducting conversions into functional and reporting currencies, tracking any exchange rate variances that may arise from fluctuating currency values, and managing currency differences throughout reconciliations.

In contrast, determining fixed prices is typically related to pricing policies and agreements between entities rather than specifically to currency management. Fixed pricing is more concerned with the consistency and clarity of intercompany transactions rather than their currency treatment, which is a secondary consideration once prices have been established. Thus, this activity doesn’t fall under the purview of ICMR's core currency-related functions.