ACCA FM Revision June 2025 Intake

The ACCA Financial Management (FM) paper equips candidates with the knowledge and skills expected of a finance manager. It focuses on investment appraisal, financing decisions, and dividend policy, enabling students to make informed financial decisions within a business context.

🎯 Course Goal of Financial Management (FM) To equip learners with the fundamental knowledge and skills necessary to make sound financial decisions within a business context. The course focuses on understanding key financial principles and techniques that support effective financial planning, investment appraisal, risk management, and corporate finance activities.

✅ Learning Outcomes of FM By the end of the course, learners should be able to: 1. Understand the Role of Financial Management Explain the objectives and functions of financial management in organizations. Understand the relationship between risk and return in financial decision-making. 2. Perform Investment Appraisal Apply investment appraisal techniques such as Net Present Value (NPV), Internal Rate of Return (IRR), and payback period. Evaluate capital investment projects considering risk and uncertainty. 3. Manage Working Capital and Finance Understand the components and importance of working capital management. Evaluate sources of finance and their implications for business operations. 4. Understand Business Finance Decisions Assess financing options including equity, debt, and hybrid instruments. Understand cost of capital and capital structure theories. 5. Apply Risk Management Techniques Identify financial risks and apply appropriate risk management tools. Understand derivatives and their use in hedging financial risks. 6. Evaluate Financial Performance Use financial ratios and other tools to analyze business performance. Understand dividend policy decisions and their impact on shareholder value.