ACCA Financial Management (FM)

The ACCA Financial Management (FM) exam validates your knowledge and skills as a finance manager, in relation to investment, financing, and dividend policy decisions. With this certification, you’ll be able to highlight your expertise in financial management functions. Further, taking this exam will strengthen your technical and practical skills in the following areas: 

• Assessing and discussing the impact of the economic environment on financial management
• Discussing and applying working capital management techniques
• Carrying out an effective investment appraisal
• Identifying and evaluating alternative sources of business finance
• Discussing and applying the principles of business and asset valuations
• Explaining and applying the risk management techniques in the business.

Exam Details 

The candidate will be given 2 hours to complete the (ACCA) exam. The passing marks for the ACCA exam are 50%. The exam is available in English, Japanese, Latin American Spanish languages. The candidate can register for the exam at Pearson VUE!

• Exam Questions: 100 Questions
• Exam Duration: 2 hours
• Passing score: 50% and above
• Type of Questions: Multiple choice questions

Recertification 

The Aruba ACCA Financial Management (FM) certification is valid for three years from the date achieved. To recertify, you must pass one of the following exams before the expiration date:

• Pass the current exam on PearsonVUE. 
• Pass the Aruba Certified ClearPass Expert written exam on PearsonVUE.
• If qualified, pass the Aruba Edge associate exam.

For More Info Check: ACCA Financial Management(FM) FAQ

Course Outline: ACCA Financial Management (FM)

The ACCA Financial Management (FM) certification exam covers the following modules:

Module 1 – Financial Management Function

• The nature and purpose of financial  management
• Financial objectives and relationship with  corporate strategy
• Stakeholders and impact on corporate objectives
• Financial and other objectives in not-for-profit organizations

Module 2 – Financial Management Environment

• The economic environment for business
• The nature and role of financial markets  and institutions
• The nature and role of money markets

Module 3 – Working Capital Management

• The nature, elements, and importance of  working capital
• Management of inventories, accounts  receivable, accounts payable, and cash
• Determining working capital needs and funding strategies

Module 4 –  Investment Appraisal

• Investment appraisal techniques
• Allowing for inflation and taxation in DCF
• Adjusting for risk and uncertainty in investment appraisal
• Specific investment decisions (lease or buy, asset replacement, capital rationing)

Module 5 – Business Finance 

• Sources of, and raising, business  finance
• Estimating the cost of capital
• Sources of finance and their relative costs
• Capital structure theories and practical  considerations
• Finance for small and medium-sized entities (SMEs)

Module 6 –  Business Valuations

• Nature and purpose of the valuation of  business and financial assets
• Models for the valuation of shares
• The valuation of debt and other financial assets
• Efficient market hypothesis (EMH) and practical considerations in the valuation of shares

Module 7 –  Risk Management

• The nature and types of risk and approaches to risk management
• Causes of exchange rate differences and interest rate fluctuations
• Hedging techniques for foreign currency risk
• Hedging techniques for interest rate risk

Module 8 –  Employability And Technology Skills

• Use computer technology to efficiently access and manipulate relevant information
• Work on relevant response options, using available functions and technology, as would be required in the workplace Financial Management (FM)
• Navigate windows and computer screens to create and amend responses to exam requirements, using the appropriate tools
• Present data and information effectively, using the appropriate tools

Preparation Resources for the ACCA Financial Management (FM) exam

It’s true that success requires hard work, whether you are a student preparing for an exam or an employee working toward a promotion. If you want to view success as your good fortune and wealth, your exam preparation will have to be a combination of effective time management and planning. Exam preparation is of vital importance because it will determine the outcome of your exams. The following are essential examination resources that every student should possess.

Learning Resource 1 – Student Virtual Learning Centre

To help you improve your English and Maths skills as well as support in getting you ready for your next ACCA exam, ACCA provides you with professional tutors who will be at your disposal to organize and conduct classes in both subjects.

Learning Resource 2 – ACCA Practice Platform 

It has a blank workspace where you can answer constructed response questions in the CBE environment. The ACCA Practice Platform contains a range of content that allows you to attempt questions to time and then mark and debrief your answers. It also contains a blank workspace that allows you to answer constructed response questions from other sources in the CBE environment.

Join a Study Group 

Joining online forums helps you discuss problems with other test-takers, compare your strategies with those of other test-takers, and gain insights into how other students are preparing for the exam. The online environment provides a wide range of resources that can help you improve your skills, keep you motivated throughout the preparation process, and ultimately increase your chances of scoring well on the exam.

Try Practice Test

There’s no substitute for hard work when it comes to testing preparation. The more practice tests you take, the more familiar you’ll be with the types of questions that will appear on exam day, and the more confident you’ll be when writing your own test. And of course, you’ll be less likely to make the same mistakes as you practice. At Testprep training, we also offer ACCA Financial Management (FM) free practice tests which are very helpful for the ones who are preparing. Remember, Practice makes perfect!