Advanced Financial Management (AFM)

ADVANCED FINANCIAL MANAGEMENT (AFM)

Syllabus and
study guide
SEPTEMBER 2024 TO JUNE 2025
Designed to help with planning study and to
provide detailed information on what could be
assessed in any examination session

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 Advanced Financial Management (AFM)

Contents
1. Introduction to the syllabus................................................................................................ 3
2. Main capabilities ............................................................................................................... 4
3. Intellectual levels ............................................................................................................... 5
4. The syllabus ...................................................................................................................... 6
5. Detailed study guide.......................................................................................................... 7
6. Summary of changes to Advanced Financial Management (AFM) .................................. 15
7. Approach to examining the syllabus ................................................................................ 15
8. Relational diagram linking Advanced Financial Management (AFM) with other exams ... 16
9. Guide to ACCA examination structure and delivery mode ............................................... 16
10. The structure of ACCA qualification .............................................................................. 18
11. Guide to ACCA examination assessment ...................................................................... 19
12. Learning hours and education recognition ..................................................................... 19

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 Advanced Financial Management (AFM)

1. Introduction to the syllabus

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.

This syllabus develops upon the core financial management knowledge and skills covered in
the Financial Management (FM) syllabus and prepares candidates to advise management
and/or clients on complex strategic financial management issues facing an organisation.

The syllabus starts by exploring the role and responsibility of a senior executive or advisor in
meeting competing needs of stakeholders within the business environment of multinationals.
The syllabus then re-examines investment and financing decisions, with the emphasis
moving towards the strategic consequences of making such decisions in a domestic, as well
as international, context. Candidates are then expected to develop further advisory skills in
planning strategic acquisitions and mergers and corporate re-organisations.

The next part of the syllabus re-examines, in the broadest sense, the existence of risks in
business and the sophisticated strategies which are employed in order to manage such
risks. It builds on what candidates would have covered in the Financial Management
syllabus.

The professional skills section of the syllabus links to all others and provides a range of
professional skills which the candidate must demonstrate in the exam. These professional
skills will make candidates more employable, or if already in work, will enhance their
opportunities for advancement.

Section G of the syllabus contains outcomes relating to the demonstration of appropriate

digital and employability skills in preparing for and taking the Advanced Financial
Management (AFM) examination. This includes being able to access and open exhibits,
requirements and response options from different sources and being able to use the relevant
functionality and technology to prepare and present response options in a professional
manner. These skills are specifically developed by practicing and preparing for the AFM
exam, using the learning support content for computer-based exams available via the
practice platform and the ACCA website and will need to be demonstrated during the live
exam.

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 Advanced Financial Management (AFM)

2. Main capabilities

On successful completion of this exam, candidates should be able to:

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

B Evaluate potential investment decisions and assessing their financial and strategic
consequences, both domestically and internationally

C Assess and plan acquisitions and mergers as an alternative growth strategy

D Evaluate and advise on alternative corporate re-organisation strategies

E Apply and evaluate alternative advanced treasury and risk management

techniques

F Apply a range of professional skills in addressing requirements within the Advanced

Financial Management exam, and in preparation for, or to support, current work
experience

G Apply employability and technology skills

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 Advanced Financial Management (AFM)

3. Intellectual levels

The syllabus is designed to progressively broaden and deepen the knowledge, skills and
professional values demonstrated by the student on their way through the qualification.

The specific capabilities within the detailed syllabuses and study guides are assessed at one
of three intellectual or cognitive levels:

Level 1: Knowledge and comprehension

Level 2: Application and analysis
Level 3: Synthesis and evaluation

Very broadly, these intellectual levels relate to the three cognitive levels at which the Applied
Knowledge, the Applied Skills and the Strategic Professional exams are assessed.

Each subject area in the detailed study guide included in this document is given a 1, 2, or 3
superscript, denoting intellectual level, marked at the end of each relevant learning outcome.
This gives an indication of the intellectual depth at which an area could be assessed within
the examination. However, while level 1 broadly equates with Applied Knowledge, level 2
equates to Applied Skills and level 3 to Strategic Professional, some lower-level skills can
continue to be assessed as the student progresses through each level. This reflects that at
each stage of study there will be a requirement to broaden, as well as deepen capabilities. It
is also possible that occasionally some higher-level capabilities may be assessed at lower
levels.

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 Advanced Financial Management (AFM)

4. The syllabus E Treasury and advanced risk

management techniques
A Role of senior financial adviser in the
multinational organisation 1. The role of the treasury function in
multinationals
1. The role and responsibility of senior
financial executive/advisor 2. The use of financial derivatives to hedge
against forex risk
2. Financial strategy formulation
3. The use of financial derivatives to hedge
3. Corporate environmental, social, against interest rate risk
governance (ESG) and ethical issues
F Professional skills
4. Management of international trade and
finance
1. Communication
5. Strategic business and financial planning
for multinational organisations 2. Analysis and evaluation

6. Dividend policy in multinationals and

3. Scepticism
transfer pricing

B Advanced investment appraisal 4. Commercial acumen

1. Discounted cash flow techniques

G Employability and technology skills
2. Application of option pricing theory in 1. Use computer technology to efficiently
investment decisions access and manipulate relevant
information.
3. Impact of financing on investment
decisions and adjusted present values 2. Work on relevant response options,
using available functions and
4. Valuation and the use of free cash flows technology, as would be required in the
workplace.
5. International investment and financing
decisions 3. Navigate windows and computer
screens to create and amend responses
C Acquisitions and mergers to exam requirements, using the
appropriate tools.
1. Acquisitions and mergers versus other
growth strategies 4. Present data and information effectively,
using the appropriate tools.
2. Valuation for acquisitions and mergers

3. Regulatory framework and processes

4. Financing acquisitions and mergers

D Corporate reconstruction and re-

organisation

1. Financial reconstruction

2. Business re-organisation

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 Advanced Financial Management (AFM)

5. Detailed study guide e) Assess the organisation’s exposure to

business and financial risk including
operational, reputational, political,
A Role of the senior financial economic, regulatory and fiscal risk.[3]
adviser in the multinational f) Develop a framework for risk
organisation management, comparing and contrasting
risk mitigation, hedging and
1. The role and responsibility of senior diversification strategies.[3]
financial executive/advisor
g) Establish capital investment monitoring
a) Develop strategies for the achievement and risk management systems.[3]
of the organisational goals in line with its
agreed policy framework.[3] h) Advise on the impact of behavioural
finance on financial strategies /
b) Recommend strategies for the securities prices and why they may not
management of the financial resources follow the conventional financial
of the organisation such that they are theories.[3]
utilised in an efficient, effective and
transparent way.[3] 3. Corporate environmental, social,
governance (ESG) and ethical issues
c) Advise the board of directors or
management of the organisation in a) Assess an organisation’s commitment to
setting the financial goals of the ESG criteria when undertaking business,
business and in its financial policy financial and investment decisions, and
development with particular reference discuss and recommend how conflicts
to:[3] between the criteria may be resolved.[3]
i) Investment selection and capital
resource allocation b) Assess the impact on the physical
ii) Minimising the cost of capital environment and the sustainability of
iii) Distribution and retention policy natural resources arising from alternative
iv) Communicating financial policy organisational business, financial and
and corporate goals to internal investment decisions.[3]
and external stakeholders
v) Financial planning and control c) Examine how the organisation manages
vi) The management of risk. its stakeholder groups as part of its
social responsibilities.[3]
2. Financial strategy formulation
d) Assess and advise on the impact of
a) Assess organisational performance investment and financing strategies and
using methods such as ratios and decisions on the organisation’s
trends.[3] stakeholders.[3]

b) Recommend the optimum capital mix e) Explore the areas within the ethical and
and structure within a specified business governance framework of the
context and capital asset structure.[3] organisation which may be undermined
by agency issues and/or stakeholder
c) Recommend appropriate distribution and conflicts and establish strategies for
retention policy.[3] dealing with them.[3]

d) Explain the theoretical and practical f) Recommend appropriate strategies for

rationale for the management of the resolution of stakeholder conflict in
risk.[3] specific situations and advise on
alternative approaches that may be
adopted.[3]

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 Advanced Financial Management (AFM)

g) Assess the impact of ethical and f) Discuss the significance to the

governance issues on the financial organisation, of latest developments in
management of the organisation.[3] the world financial markets such as the
causes and impact of the recent financial
h) Recommend an ethical and governance crisis; growth and impact of dark pool
framework for the development of an trading systems; the removal of barriers
organisation’s financial management to the free movement of capital; and the
policies, which is grounded in the highest international regulations on money
standards of probity and is fully aligned laundering.[2]
with the ethical principles of the
Association.[3] g) Demonstrate an awareness of new
developments in the macroeconomic
4. Management of international trade environment, assessing their impact
and finance upon the organisation, and advising on
the appropriate response to those
a) Advise on the theory and practice of free developments both internally and
trade and the management of barriers to externally.[2]
trade.[3]
5. Strategic business and financial
b) Demonstrate an up to date planning for multinationals
understanding of the major trade
agreements and common markets and, a) Advise on the development of a financial
on the basis of contemporary planning framework for a multinational
circumstances, advise on their policies organisation taking into account:[3]
and strategic implications for a given i) Compliance with national regulatory
business.[3] requirements (for example the
London Stock Exchange admission
c) Discuss how the actions of the World requirements)
Trade Organisation, the International ii) The mobility of capital across borders
Monetary Fund, The World Bank and and national limitations on
Central Banks can affect a multinational remittances and transfer pricing
organisation.[2] iii) The pattern of economic and other
risk exposures in the different
d) Discuss the role of international financial national markets
institutions within the context of a iv) Agency issues in the central
globalised economy, with particular coordination of overseas operations
attention to (the Fed, Bank of England, and the balancing of local financial
European Central Bank and the Bank of autonomy with effective central
Japan).[2] control.

e) Discuss the role of the international

financial markets with respect to the
management of global debt, the financial
development of the emerging economies
and the maintenance of global financial
stability.[2]

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 Advanced Financial Management (AFM)

6. Dividend policy in multinationals and b) Outline the application of Monte Carlo

transfer pricing simulation to investment appraisal.[2]
Candidates will not be expected to
a) Determine a corporation’s dividend undertake simulations in an examination
capacity and its policy given:[3] context but will be expected to
i) The corporation’s short- and long- demonstrate an understanding of:
term reinvestment strategy i) The significance of the
ii) The impact of capital reconstruction simulation output and the
programmes such as share assessment of the likelihood of
repurchase agreements and new project success
capital issues on free cash flow to ii) The measurement and
equity. interpretation of project value at
iii) The availability and timing of central risk.
remittances
iv) The corporate tax regime within c) Establish the potential economic return
the host jurisdiction. (using internal rate of return (IRR) and
v) The organisational policy on the modified internal rate of return) and
transfer pricing of goods and advise on a project’s return margin.
services across international borders. Discuss the relative merits of NPV and
IRR.[3]
b) Advise, in the context of a specified
capital investment programme, on an 2. Application of option pricing theory in
organisation’s current and projected investment decisions
dividend capacity.[3]
a) Apply the Black-Scholes Option Pricing
(BSOP) model to financial product
B Advanced investment valuation and to asset valuation:[3]
appraisal i) Determine and discuss, using
published data, the five principal
1. Discounted cash flow techniques drivers of option value (value of
the underlying, exercise price,
a) Evaluate the potential value added to an time to expiry, volatility and the
organisation arising from a specified risk-free rate)
capital investment project or portfolio ii) Discuss the underlying
using the net present value (NPV) assumptions, structure,
model.[3] application and limitations of the
Project modelling should include explicit BSOP model.
treatment and discussion of:
i) Inflation and specific price b) Evaluate embedded real options within a
variation project, classifying them into one of the
ii) Taxation including tax allowable real option archetypes.[3]
depreciation and tax exhaustion
iii) Capital rationing. Multi-period c) Assess, calculate and advise on the
capital rationing limited to discussion value of options to delay, expand,
only redeploy and withdraw using the BSOP
iv) Probability analysis and model.[3]
sensitivity analysis when
adjusting for risk and uncertainty
in investment appraisal
v) Risk adjusted discount rates
vi) Project duration as a measure of
risk.

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 Advanced Financial Management (AFM)

3. Impact of financing on investment h) Assess the organisation’s exposure to

decisions and adjusted present credit risk, including:[3]
values i) Explain the role of, and the
risk assessment models used
a) Identify and assess the appropriateness by the principal rating
of the range of sources of finance agencies
available to an organisation including ii) Estimate the likely credit spread over
equity, debt, hybrids, lease finance, risk free
venture capital, business angel finance, iii) Estimate the organisation’s current
private equity, asset securitisation and cost of debt capital using the
sale, Islamic finance and security token appropriate term structure of interest
offerings. Including assessment on the rates and the credit spread.
financial position, financial risk and the
value of an organisation.[3] i) Assess the impact of financing and
capital structure upon the organisation
b) Discuss the role of, and developments with respect to:[3]
in, Islamic financing as a growing i) Modigliani and Miller propositions,
source of finance for organisations; before and after tax
explaining the rationale for its use, and ii) Static trade-off theory
identifying its benefits and iii) Pecking order propositions
deficiencies.[2] iv) Agency effects.

c) Discuss the role of green finance for j) Apply the adjusted present value
organisations pursuing an technique to the appraisal of investment
environmental/sustainable agenda.[2] decisions that entail significant
alterations in the financial structure of
d) Calculate the cost of capital of an the organisation, including their fiscal
organisation, including the cost of equity and transactions cost implications.[3]
and cost of debt, based on the range of
equity and debt sources of finance. k) Assess the impact of a significant capital
Discuss the appropriateness of using investment project upon the reported
the cost of capital to establish project financial position and performance of
and organisational value, and discuss the organisation taking into account
its relationship to such value.[3] alternative financing strategies.[3]

e) Calculate and evaluate project specific 4. Valuation and the use of free cash
cost of equity and cost of capital, flows
including their impact on the overall cost
of capital of an organisation. a) Apply asset based, income based and
Demonstrate detailed knowledge of cash flow based models to value equity.
business and financial risk, the capital Apply appropriate models, including term
asset pricing model and the relationship structure of interest rates, the yield curve
between equity and asset betas.[3] and credit spreads, to value corporate
debt.[3]
f) Assess an organisation’s debt exposure
to interest rate changes using the b) Forecast an organisation’s free cash flow
simple Macaulay duration and modified and its free cash flow to equity (pre and
duration methods.[3] post capital reinvestment).[3]

g) Discuss the benefits and limitations of c) Advise on the value of an organisation

duration including the impact of using its free cash flow and free cash
convexity.[3] flow to equity under alternative horizon
and growth assumptions.[3]

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 Advanced Financial Management (AFM)

d) Explain the role of option pricing models, e) Evaluate, from a given context, the
such as the BSOP model, in the potential for synergy separately
assessment of the value of equity, the classified as:[3]
value of debt and of default risk.[2] i) Revenue synergy
ii) Cost synergy
5. International investment and iii) Financial synergy.
financing decisions
f) Evaluate the use of alternative methods
a) Assess the impact upon the value of a as a way of obtaining a stock market
project of alternative exchange rate listing; including special purpose
assumptions.[3] acquisition companies (SPACs), direct
listings, dutch auctions and reverse
b) Forecast project or organisation free takeovers.[3]
cash flows in any specified currency and
determine the project’s net present value 2. Valuation for acquisitions and
or organisation value under differing mergers
exchange rate, fiscal and transaction
cost assumptions.[2] a) Estimate the potential near-term and
continuing growth levels of a
c) Evaluate the significance of exchange corporation’s earnings using both
controls for a given investment decision internal and external measures.[3]
and strategies for dealing with restricted
remittance.[3] b) Discuss, assess and advise on the value
created from an acquisition or merger of
d) Assess and advise on the costs and both quoted and unquoted entities using
benefits of alternative sources of finance models such as:[3]
available within the international equity i) ’Book value-plus’ models
and bond markets.[3] ii) Market based models
iii) Cash flow models, including free
cash flows.
C Acquisitions and mergers Taking into account the changes in the
risk profile and risk exposure of the
1. Acquisitions and mergers versus
acquirer and the target entities
other growth strategies
c) Apply appropriate methods, such as:
a) Discuss the arguments for and against
risk-adjusted cost of capital, adjusted net
the use of acquisitions and mergers as a
present values and changing price-
method of corporate expansion.[2]
earnings multipliers resulting from the
acquisition or merger, to the valuation
b) Evaluate the corporate and competitive
process where appropriate.[3]
nature of a given acquisition proposal.[3]
d) Demonstrate an understanding of the
c) Advise upon the criteria for choosing an
procedure for valuing high growth start-
appropriate target for acquisition.[3]
ups and loss making companies.[2]
d) Discuss the reasons for the frequent
3. Regulatory framework and processes
failure of acquisitions to enhance
shareholder value as expected, including
a) Demonstrate an understanding of the
the problem of overvaluation.[3]
principal factors influencing the
development of the regulatory framework
for mergers and acquisitions globally
and, in particular, be able to compare
and contrast the shareholder versus the
stakeholder models of regulation.[2]

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 Advanced Financial Management (AFM)

b) Identify the main regulatory issues which E Treasury and advanced risk
are likely to arise in the context of a
given offer and
management techniques
i) assess whether the offer is likely
1. The role of the treasury function in
to be in the shareholders’ best
multinationals
interests
ii) advise the directors of a target
a) Discuss the role of the treasury
entity on the most appropriate
management function within:[3]
defence if a specific offer is to be
i) The short term management of
treated as hostile.[3]
the organisation’s financial
resources
4. Financing acquisitions and mergers
ii) The longer term maximisation of
corporate value
a) Compare the various sources of
iii) The management of risk
financing available for a proposed cash-
exposure.
based acquisition.[3]
b) Discuss the operations of the derivatives
b) Evaluate the advantages and
market, including:[3]
disadvantages of a financial offer for a
i) The relative advantages and
given acquisition proposal using pure or
disadvantages of exchange traded
mixed mode financing and recommend
versus OTC agreements
the most appropriate offer to be made.[3]
ii) Key features, such as standard
contracts, tick sizes, margin
c) Assess the impact of a given financial
requirements and margin trading
offer on the reported financial position
iii) The source of basis risk and how
and performance of the acquirer.[3]
it can be minimised.
iv) Risks such as delta, gamma and
D Corporate reconstruction and theta, and how these can be
re-organisation managed.
1. Financial reconstruction
2. The use of financial derivatives to
hedge against forex risk
a) Assess an organisational situation
and determine whether a financial
a) Assess the impact on an organisation to
reconstruction is an appropriate
exposure in translation, transaction and
strategy for a given business
economic risks and how these can be
situation.[3]
managed.[3]
b) Assess the likely response of the
b) Evaluate, for a given hedging
capital market and/or individual
requirement, which of the following is the
suppliers of capital to any
most appropriate strategy, given the
reconstruction scheme and the impact
nature of the underlying position and the
their response is likely to have upon the
risk exposure:[3]
value of the organisation.[3]
i) The use of the forward exchange
market and the creation of a money
2. Business re-organisation
market hedge
ii) Synthetic foreign exchange
a) Recommend, with reasons, strategies for
agreements (SAFEs)
unbundling parts of a quoted company.[3]
iii) Exchange-traded currency futures
contracts
b) Evaluate the likely financial and other
iv) Currency swaps
benefits of unbundling.[3]
v) FOREX swaps
vi) Currency options.
c) Advise on the financial issues relating to
a management buy-out and buy-in.[3]

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 Advanced Financial Management (AFM)

c) Advise on the use of bilateral and b) Consider information, evidence and

multilateral netting and matching as tools findings carefully, reflecting on their
for minimising FOREX transactions costs implications and how they can be
and the management of market barriers used in the interests of the wider
to the free movement of capital and organisational goals.[3]
other remittances.[3]
c) Assess and apply appropriate
3. The use of financial derivatives to judgement when considering
hedge against interest rate risk organisational issues, problems or
when making financial management
a) Evaluate, for a given hedging decisions; taking into account the
requirement, which of the following is the implications of such decisions on the
most appropriate given the nature of the organisation and those affected.[3]
underlying position and the risk
exposure:[3] d) Appraise information objectively with
i) Forward Rate Agreements (FRAs) a view to balancing the costs, risks,
ii) Interest rate futures benefits and opportunities, before
iii) Interest rate swaps recommending appropriate solutions
iv) Interest rate options (including or decisions.[3]
collars).
3. Scepticism
F Professional skills
a) Explore the underlying reasons for a
1. Communication given situation, applying the attitude
of an enquiring mind, beyond what is
a) Inform concisely, objectively and immediately apparent.[3]
unambiguously, adopting a suitable
style and format, using appropriate b) Question opinions, assertions and
technology.[3] assumptions, by seeking
justifications and obtaining sufficient
b) Persuade using compelling and evidence for either their support and
logical arguments, demonstrating the acceptance or rejection.[3]
ability to counter argue where
appropriate.[3] c) Challenge and critically assess the
information presented or decisions
c) Clarify and simplify complex issues made, where this is clearly justified,
to convey relevant information in a in the wider professional, ethical,
way that adopts an appropriate tone organisational, or public interest.[3]
and is easily understood by and
reflects the requirements of the 3. Commercial acumen
intended audience.[3]
a) Demonstrate awareness of
2. Analysis and evaluation organisational and external factors,
which will affect the financial
a) Investigate relevant information from management decisions of an
a range of sources, using appropriate organisation.[3]
analytical techniques to estimate
outcomes, assist in decision-making b) Recognise key issues in a given
and to identify opportunities or scenario and use judgement in
solutions.[3] proposing and recommending
commercially viable solutions.[3]

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 Advanced Financial Management (AFM)

c) Show insight and perception in

understanding financial issues and
wider organisational matters,
demonstrating acumen in arriving at
appropriate recommendations.[3]

G Employability and technology

skills
1. Use computer technology to
efficiently access and manipulate
relevant information

2. Work on relevant response options,

using available functions and
technology, as would be required in
the workplace

3. Navigate windows and computer

screens to create and amend
responses to exam requirements,
using the appropriate tools

4. Present data and information

effectively, using the appropriate
tools

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 Advanced Financial Management (AFM)

6. Summary of changes to Advanced Financial

Management (AFM)

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 additions to, or deletions from, the syllabus.

7. Approach to examining the syllabus

The Advanced Financial Management exam builds upon the skills and knowledge examined
in the Financial Management exam. At this stage candidates will be expected to
demonstrate an integrated knowledge of the subject and an ability to relate their technical
understanding of the subject to issues of strategic importance to the organisation. The study
guide specifies the wide range of contextual understanding that is required to achieve a
satisfactory standard at this level.

The examination will also focus on the following professional skills and behaviours:

• Communication
• Analysis and Evaluation
• Scepticism
• Commercial Acumen

Examination Structure

The syllabus is assessed by a three-hour 15 minutes examination.

Section A

Section A will always be a single 50 mark case study. The 50 marks will comprise of 40
technical marks and 10 professional skills marks. All of the professional skills will be
examined in Section A.

Candidates should understand that they will be expected to undertake calculations, draw
comparison against relevant information where appropriate, analyse the results and offer
recommendations or conclusions as required.

Financial managers are required to look across a range of issues which affect an
organisation and its finances, so candidates should expect to see the case study focus on a
range of issues from at least two syllabus sections from A - E. These will vary depending on
the business context of the case study.

Section A questions will ask candidates to produce a response in a specific format, , for
example a report to the Board of Directors.

Section B

Section B will consist of two compulsory 25 mark questions. All section B questions will be
scenario based and contain a combination of calculation and narrative marks. There will not

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 Advanced Financial Management (AFM)

be any wholly narrative questions. The 25 marks will comprise of 20 technical marks and 5
professional skills marks. Section B questions will contain a combination of professional
skills appropriate to the question. Each question will contain a minimum of two professional
skills from Analysis and Evaluation, Scepticism and Commercial Acumen.

All topics and syllabus sections will be examinable in either section A or section B of the
exam, but every exam will have question(s) which have a focus on syllabus sections B and
E.

Total 100 marks

8. Relational diagram linking Advanced Financial

Management (AFM) with other exams

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.

9. Guide to ACCA examination structure and delivery mode

The pass mark for all ACCA Qualification examinations is 50%.

The structure and delivery mode of examinations varies.

Applied Knowledge
The Applied Knowledge examinations contain 100% compulsory questions to encourage
candidates to study across the breadth of each syllabus. These are assessed by a two-hour
computer-based examination.

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 Advanced Financial Management (AFM)

Applied Skills
The Corporate and Business Law exam is a two-hour computer-based objective test
examination for English and Global.

For the format and structure of the Corporate and Business Law or Taxation variant exams,
refer to the ‘Approach to examining the syllabus’ section of the relevant syllabus and study
guide.

The other Applied Skills examinations (PM, TX-UK, FR, AA, and FM) contain a mix of
objective and longer type questions with a duration of three hours for 100 marks. These are
assessed by a three-hour computer-based exam. Prior to the start of each exam there will
be time allocated for students to be informed of the exam instructions.

The longer (constructed response) question types used in the Applied Skills exams
(excluding Corporate and Business Law) require students to effectively mimic what they do
in the workplace. Students will need to use a range of digital skills and demonstrate their
ability to use spreadsheets and word processing tools in producing their answers, just as
they would use these tools in the workplace. These assessment methods allow ACCA to
focus on testing students’ technical and application skills, rather than, for example, their
ability to perform simple calculations.

Strategic Professional
Essentials:
Strategic Business Leader is ACCA’s case study examination at Strategic Professional and
is examined as a closed book exam of 3 hours and 15 minutes, including reading, planning
and reflection time which can be used flexibly within the examination.

Pre-seen information for the Strategic Business Leader exam will be released two weeks
before the exam sitting. The pre-seen information contains background and contextual
details in order for students to familiarise themselves with the fictitious organisation that they
will be examined on and the industry in which it operates.

The Strategic Business Leader exam will contain new information in the form of exhibits and
students are required to complete several tasks. All questions are compulsory and each
examination will contain a total of 80 technical marks and 20 professional skills marks.

As this is a closed book exam, the pre-seen information is also available within the
examination.

Strategic Business Reporting is a three-hour 15 minutes exam. It contains two sections and
all questions are compulsory. This exam contains four professional marks.

Options:
The Strategic Professional Options are all three hours and 15 minutes computer-based
exams. All contain two sections and all questions are compulsory.

All option exams contain a total of 80 technical marks and 20 professional skills marks.

The question types used at Strategic Professional require students to effectively mimic what
they would do in the workplace.

These exams offer ACCA the opportunity to focus on the application of knowledge to
scenarios, using a range of tools including word processor, spreadsheets and presentation
slides - not only enabling students to demonstrate their technical and professional skills but
also their use of the technology available to today’s accountants.

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Time management
ACCA encourages students to take time to read questions carefully and to plan answers but
once the exam time has started, there are no additional restrictions as to when students may
start producing their answer.

Students should ensure that all the information and exam requirements are properly read
and understood.

10. The structure of ACCA qualification

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 Advanced Financial Management (AFM)

11. Guide to ACCA examination assessment

ACCA reserves the right to examine any learning outcome contained within the study guide.
This includes knowledge, techniques, principles, theories, and concepts as specified. For
the financial accounting, audit and assurance, law and tax exams except where indicated
otherwise, ACCA will publish examinable documents once a year to indicate exactly what
regulations and legislation could potentially be assessed within identified examination
sessions.

For most examinations (not tax), regulations issued or legislation passed on or before 31
August annually, will be examinable from 1 September of the following year to 31 August of
the year after that. Please refer to the examinable documents for the exam (where relevant)
for further information.

Regulations issued or legislation passed in accordance with the above dates will not be
examinable if the effective date is in the future, unless explicitly stated otherwise in this
syllabus and study guide or examinable documents.

The term issued or passed relates to when regulation or legislation has been formally
approved.

The term effective relates to when regulation or legislation must be applied to an entity’s
transactions and business practices.

The study guide offers more detailed guidance on the depth and level at which the
examinable documents will be examined. The study guide should therefore be read in
conjunction with the examinable documents list.

For UK tax exams, examinations falling within the period 1 June to 31 March will generally
examine the Finance Act which was passed in the previous year. Therefore, exams falling in
the period 1 June 2024 to 31 March 2025 will examine the Finance Act 2023 and any
examinable legislation which is passed outside of the Finance Act before 31 May 2023.

For additional guidance on the examinability of specific tax rules and the depth in which they
are likely to be examined, reference should be made to the relevant Finance Act article
written by the examining team and published on the ACCA website.

None of the current or impending devolved taxes for Scotland, Wales, and Northern Ireland
is, or will be, examinable.

12. Learning hours and education recognition

The ACCA qualification does not prescribe or recommend any particular number of learning
hours for examinations because study and learning patterns and styles vary greatly between
people and organisations. This also recognises the wide diversity of personal, professional and
educational circumstances in which ACCA students find themselves.

As a member of the International Federation of Accountants, ACCA seeks to enhance the

education recognition of its qualification on both national and international education frameworks,
and with educational authorities and partners globally. In doing so, ACCA aims to ensure that its
qualification is recognised and valued by governments, regulatory authorities and employers
across all sectors. To this end, the ACCA qualification is currently recognised on the education

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 Advanced Financial Management (AFM)

frameworks in several countries. Please refer to your national education framework regulator for
further information.

Each syllabus is organised into main subject area headings which are further broken down to
provide greater detail on each area.

ACCA’s content partners are BPP Learning Media and Kaplan Publishing. They create their own
learning materials. For more information about the types of materials offered, please visit their
websites and contact them directly.

20 © ACCA 2024-2025 All rights reserved.