The ACCA Advanced Financial Management (AFM) syllabus develops the skills required for senior financial executive or advisory roles, focusing on complex strategic decisions within multinational organizations. It builds directly upon the Applied Skills Financial Management (FM) exam.
AFM Syllabus Overview
The Official AFM Study Guide covers:
- Role of Senior Financial Adviser: Focuses on stakeholder management, ethics, governance, and international financial institutions.
- Advanced Investment Appraisal: Includes complex NPV, Adjusted Present Value (APV), real options, and international investment decisions.
- Acquisitions and Mergers: Covers growth strategies, valuation models (Free Cash Flow, asset-based, etc.), and the regulatory framework.
- Corporate Reconstruction: Addresses financial reorganization, business failure, and debt-for-equity swaps.
- Treasury and Risk Management: Advanced hedging using financial derivatives like futures, options, and swaps.
Main Learning Outcomes
Upon successful completion, candidates should be able to:
- Advise on the role and responsibilities of a senior financial executive in meeting conflicting stakeholder needs.
- Evaluate potential investment decisions and their strategic consequences, both domestically and internationally.
- Assess and plan acquisitions and mergers as growth strategies, including business valuations.
- Evaluate and advise on corporate re-organization and financial reconstruction strategies.
- Apply advanced treasury and risk management techniques, specifically for foreign exchange and interest rate risks.
- Demonstrate professional skills including communication, analysis, evaluation, skepticism, and commercial acumen.
Exam Format
The 3-hour and 15-minute computer-based exam consists of:
- Section A: One 50-mark mandatory case study (40 technical marks + 10 professional skills marks).
- Section B: Two 25-mark mandatory scenario-based questions (20 technical + 5 professional skills marks each)