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Advanced
Financial
Management
(AFM)
Syllabus and study guide
Summary of content
Introduction
1. Intellectual levels
2. Learning hours and educational
recognition
3. Guide to ACCA examination structure
4. Guide to ACCA examination
assessment
Advanced Financial
Management syllabus
5. Relational diagram linking Advanced
Financial Management with other exams
6. Overall aim of the syllabus
7. Main capabilities
8. Rationale
9. Approach to examining the syllabus
10. The syllabus
Advanced Financial
Management study guide
11. Detailed study guide
This diagram shows links between this exam and other exams preceding or
following it. Some exams are directly underpinned by other exams such as
Advanced Financial Management with Financial Management. This diagram
indicates where students are expected to have underpinning knowledge and where
it would be useful to review previous learning before undertaking study.
This syllabus and study guide is designed to help with planning study and to provide
detailed information on what could be assessed in any examination session.
The aim of the syllabus is to apply relevant knowledge, skills and exercise
professional judgement as expected of a senior financial executive or advisor, in
taking or recommending decisions relating to the financial management of an
organisation in private and public sectors.
7.Main capabilities
A Explain and evaluate the role and responsibility of the senior financial executive
or advisor in meeting conflicting needs of stakeholders and recognise the role of
international financial institutions in the financial management of multinationals
This diagram illustrates the flows and links between the main capabilities of the
syllabus and should be used as an aid to planning teaching and learning in a
structured way.
8.Rationale
Examination Structure
Section A
b) Discuss the role of, and h) Assess the impact of financing and
developments in, Islamic financing capital structure upon the
as a growing source of finance for organisation with respect to:[3]
c) Advise upon the criteria for choosing merger, to the valuation process
an appropriate target for where appropriate.[3]
acquisition.[3]
e) Demonstrate an understanding of
d) Compare the various explanations the procedure for valuing high
for the high failure rate of growth start-ups.[2]
acquisitions in enhancing
shareholder value.[3] 3. Regulatory framework and
processes
e) Evaluate, from a given context, the
potential for synergy separately a) Demonstrate an understanding of
classified as:[3] the principal factors influencing the
i) Revenue synergy development of the regulatory
ii) Cost synergy framework for mergers and
iii) Financial synergy. acquisitions globally and, in
particular, be able to compare and
f) Evaluate the use of the reverse contrast the shareholder versus the
takeover as a method of acquisition stakeholder models of regulation.[2]
and as a way of obtaining a stock
market listing:[3] b) Identify the main regulatory issues
which are likely to arise in the
2. Valuation for acquisitions and context of a given offer and
mergers i) assess whether the offer is likely
to be in the shareholders’ best
a) Discuss the problem of interests
overvaluation.[2] ii) advise the directors of a target
entity on the most appropriate
b) Estimate the potential near-term defence if a specific offer is to be
and continuing growth levels of a treated as hostile.[3]
corporation’s earnings using both
internal and external measures.[3] 4. Financing acquisitions and
mergers
c) Discuss, assess and advise on the
value created from an acquisition or a) Compare the various sources of
merger of both quoted and unquoted financing available for a proposed
entities using models such as:[3] cash-based acquisition.[3]
i) ’Book value-plus’ models
ii) Market based models b) Evaluate the advantages and
iii) Cash flow models, including free disadvantages of a financial offer for
cash flows. a given acquisition proposal using
Taking into account the changes in pure or mixed mode financing and
the risk profile and risk exposure of recommend the most appropriate
the acquirer and the target entities offer to be made.[3]
a) Discuss the role of the treasury c) Advise on the use of bilateral and
management function within:[3] multilateral netting and matching as
i) The short term management of tools for minimising FOREX
the organisation’s financial transactions costs and the
resources management of market barriers to
ii) The longer term maximisation of the free movement of capital and
corporate value other remittances.[3]
iii) The management of risk
exposure.
ACCA periodically reviews its qualification syllabuses so that they fully meet the
needs of stakeholders such as employers, students, regulatory and advisory bodies
and learning providers.
There have been no deletions to the AFM study guide from the 2018 – 2019 study
guide