Advanced investment appraisal
Discounted cash flow techniques and the use of free cash flows
Impact of financing on investment decisions and adjusted present values
Application of option pricing theory in investment decisions
International investment and financing decisions
Impact of capital investment on financial reporting
Acquisitions and mergers
Acquisitions and mergers versus other growth strategies
Valuation for acquisitions and mergers
Regulatory framework and processes
Financing acquisitions and mergers
Corporate reconstruction and re-organisation
Predicting corporate failure
Treasury and advanced risk management techniques
The role of the treasury function in multinationals
The use of financial derivatives to hedge against forex risk
The use of financial derivatives to hedge against interest rate risk
Other forms of risk
Dividend policy in multinationals and transfer pricing
This syllabus develops upon the core financial management knowledge and skills covered in the F9, Financial Management, syllabus at the Fundamentals level 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. 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 covers the role of a treasury function in large complex corporate structures. It re-examines, in the broadest sense, the existence of risk in business and the sophisticated strategies which are employed in order to manage such risks. This is a build-up on what candidates would have covered in the F9, Financial Management, syllabus and the P1, Professional Accountant, syllabus.
The syllabus finishes by examining the impact of the economic environment on multinationals and the impact of emerging issues in finance.
Financial strategy formulation
Ethical issues in financial management
Role and responsibility towards stakeholders
Conflicting stakeholder interests
The role and responsibility of senior financial
Impact of environmental issues on corporate objectives and on governance