ACCA - F9 Financial Management

The detailed syllabus includes: 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; financial management environment - the economic environment for business, the nature and role of financial markets and institutions; 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; and, investment appraisal - the nature of investment decisions and the appraisal process, non-discounted cash flow techniques, discounted cash flow (DCF) techniques, allowing for inflation and taxation in dcf, adjusting for risk and uncertainty in investment appraisal, specific investment decisions (lease or buy asset replacement, cap ital rationing). It also includes: business finance - sources of, and raising short-term finance, sources of, and raising long-term finance, internal sources of finance and dividend policy, gearing and capital structure considerations, finance for small and medium-size entities (SM ES); cost of capital - sources of finance and their relative costs, estimating the cost of equity, estimating the cost of debt and other capital instruments, estimating the overall cost of capital, capital structure theories and practical considerations, impact of cost of capital on investments. It also includes: 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; 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.