ACCA FM (Financial Management, F9) is one of paper in Applied Skills Module. They syllabus states its aim is to develop students' knowledge and skills, relevant to investment, financing and dividend policy decisions, to qualify as a finance manager.
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Financial Management is a fundamental activity in any business. It helps a Finance Manager to plan, organize, control and monitor its financial resources to achieve its goals and the objectives of any organization. It is an ultimate process for controlling the financial activities of a company.
The course is designed to develop the knowledge and expertise expected from a finance manager, with regards to investment, financing, and dividend policy decision-makings.
The paper introduces the principle of the financial management within a business. The syllabus explores the economic environment in which investing, financing and dividend policy decisions are made. The next segment of syllabus introduces investment decision which is further divided into two parts, investment and management of working capital and the appraisal of long-term investments. Then the syllabus establishes an understanding about financing decisions which is commenced by determining different sources of business finance and how much finance can be lift up from the business. It then covers the principles for valuing a business and its financial assets, together with the impact of cost of capital on business valuation. The syllabus ends with the introduction on the concept of risk and the techniques involved in managing the risk.
This paper gives insight to a student about the advanced skills and knowledge which will be needed to lead the student towards P4 Advanced Financial Management.
Key areas of paper:
Financial management function : The course will specify the nature and purpose of financial management together with financial objectives and its relation with corporate strategy. Learn the role of Stakeholders and their impact on corporate objectives and financial objectives for non-profit organizations
Financial management environment : Study the economic environment for business and role of financial markets, money markets and institutions.
Working capital management : Understand the significance of working capital and the management of inventories, accounts receivable, accounts payable and cash. Determine the needs of working capital and funding strategies
Investment appraisal : Study Investment appraisal techniques to understand inflation and taxation in investment appraisal. Learn Specific investment decisions and how to adjust risk and uncertainty in investment appraisal.
Business finance : Determine the Sources of financing business and how to raise finance for small-medium sized enterprises. Learn to Estimate the cost of capital, Capital structure theories and practical considerations.
Business valuations : Study the Nature and role of valuing a business, its financial assets, share valuation models, valuation of debt and other financial assets, efficient market hypothesis (EMH) and practical considerations in valuation of shares.
Risk management : Learn the types and techniques to manage risk. Understand the reasons of exchange rate risk and interest rate fluctuations. Determine how to hedge foreign currency risk and interest rate risk.
Self-study programs with chapter wise video lectures, study material and practice bank.
Live teaching sessions with recorded facility
Easy access to e-study material including comprehensive study notes, revision notes, summary notes.
Extensive practice bank based on real exam environment
Mock test with marking and review facility from subjects experts
24/7 tutor support
On completion of this course student will be able to:
Converse about the nature and purpose of the financial management functions.
Explain the impact of the economic environment on financial management
Implement working capital management techniques
Execute effective investment appraisal
Recognize and appraise different sources of business finance
Explain the principles of business and asset valuations