F9 ★ K҉A҉P҉‎•L҉A҉N҉ ★ Financial Management (FM) - STUDY TEXT and REVISION KIT

ACCA F9 Paper – Financial Management – is concerned with the financial management of a company. Paper F2 introduced some new concepts, such as discounted cash flow and inventory control. These, as well as other new topics, are thoroughly examined.

Syllabus of F9 Financial Management (FM)

The syllabus's goal is to improve a financial manager's knowledge and skills when making investment, financing, and dividend policy decisions.

The F9 Financial Management (FM) syllabus is intended to provide candidates with the skills that a finance manager of a company's finance function would expect. It prepares students for higher-level Advanced Financial Management studies.

As a result, the syllabus begins with an overview of financial management's role and purpose in business. The syllabus discusses the economic environment in which such decisions are made before delving into the three main financial management decisions of investment, finance, and dividend policy.

Investment Decisions

The following section of the syllabus discusses investment decisions. This is done in two stages: working capital investment and management, and long-term investment appraisal.

Financial Decisions

The sections that follow are primarily concerned with financial decisions. This section of the syllabus begins with a discussion of the various sources of business financing, such as dividend policy and the amount of money that can be raised internally. It also takes into account the cost of capital and other factors that influence a company's decision on how to raise funds. The principles underlying company and financial asset valuation are first discussed, as is the impact of the cost of capital on the value of a business.

The curriculum concludes with an introduction to and examination of risk, as well as key risk management strategies.

Main Abilities

  • To pass the exam, candidates must be able to: Discuss the role and intent of the financial management function.
  • Consider and address the economic impact on financial management.
  • Discuss and put into action working capital management strategies.
  • Conduct an in-depth investment analysis.
  • Discuss and apply company and asset valuation principles.
  • Explain and put risk management strategies into practice in the workplace.

Structure of the ACCA F9 paper

The examination is divided into three parts: Section A will have 15 two-mark multiple-choice questions; Section B will have three scenarios with five multiple-choice questions each. Section C contains two 20-mark 'long forms' questions (a full question requiring a full answer). These two questions will be drawn from the sections on working capital management, investment appraisal, and business finance in the syllabus. Sections A and B's questions can (and will!) cover every topic on the syllabus.

You'll have 3 hours for the exam plus 15 minutes for reading if you take the paper-based exam rather than the computer-based exam.

Calculations account for half of the exam, while written questions account for the other half.

Emphasis of the ACCA F9 exam

Although the majority of the arithmetic is not difficult in and of itself, the calculation portions of questions are designed to see if you understand the techniques and can decide what information is relevant, rather than simply memorize rules.

For the written portions of questions, there are several financial management theories that can be examined, but many of them are checking that you understand the techniques, their assumptions, and limitations.

How to pass ACCA F9 Exam

How you approach the exam, regardless of how much you've studied, can make a big difference. Look for and answer the short and simple questions in Sections A and B first. With the time you have left, spend more time on the longer and more difficult questions. Spend no more than 27 minutes on each section.

When the time for the entire exam is nearly up, go back and guess the answer to any questions you haven't finished – guessing a few questions may result in only one correct answer, but 2 marks is a big deal if you would have failed on 48 questions otherwise. No one will notice if you do neat calculations for Sections A and B.

Allow approximately 36 minutes for each Section C question. Make sure to write something for each section of each question – you may get stuck or run out of time, but you can always write something, and anything reasonable will almost certainly get you a mark. Make sure your calculations for the calculation parts of questions are neat and easy to follow – the marks in Section C are for the workings, not the final answer.

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