Prepare
to pass
A guide to help
you if you are
studying
P4
Advanced
Financial
Management
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Prepare
to pass
A guide to help
you if you are
studying
P
Advanced
Financial
Management
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Welcome to your guide helping
you to study for your P4 exam
Why use this guide?
✓ Structured approach to show you how to succeed
✓ Signposted resources and how to use them
✓ Tips for success to help you through your studies
✓ Interactive clickable checklists to keep you on track
This guide applies to paper-based exams for September
and December 2015 and March and June 2016.
Prepare to pass
Stages of
study
Sections
Getting started 03
Learning phase 09
Revision phase 17
Final preparation 21
The exam 23
Appendix – Links 25
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Getting started – Tips for success
✓ The earlier you enter for your
exam the less it costs!
✓ Use the ACCA Learning
Community to link up
with fellow students around
the world studying the same
exam as you – get tips, join
discussions and share ideas
and advice. You can also
access live Q&A sessions and
presentations.
✓ Download the Student
Planner App – a tool that
helps you map your journey
to ACCA membership while
balancing your work
and social life.
✓ Spend some time familiarising
yourself with the free
resources available via the
exam resource finder on the
student section of the ACCA
website – we will provide you
with specific guidance on
when and how to use these
resources during the relevant
stages of study.
✓ Remember to personalise
your edition of Student
Accountant so you receive P
specific information
as you need it.
✓ Consider working through the
professional skills modules
either before you start, or
alongside your studies. These
modules give you insight into
professional skills that you
can apply in your exam or in
the workplace.
Exempt from F9?
✓ Make sure you have the
assumed knowledge needed
from F9 for P4 (see
P4 syllabus and study guide).
✓ If you feel your knowledge
is lacking, consider buying
an F9 Approved Content
Provider study text to refresh
your understanding.
When drawing up your study
plan (see page 5)
✓ Be realistic and consider
when you are best able
to study – maybe early
mornings work better for
you or perhaps shorter, more
frequent study periods.
✓ Once you have prepared your
plan stick to it!
✓ Consider building in an extra
study period after every
few chapters to review and
consolidate your learning.
✓ Take a 5-10 minute break
every hour to help maintain
your motivation and
concentration.
We strongly recommend that
you buy a P4 Approved Content
Provider study text and question
and answer bank to ensure exam
success. These provide:
- the most up to date content and
syllabus coverage.
- tests, quizzes and other support
designed to help you prepare
for your exam.
- past exam questions updated
for changes to the syllabus,
question style and exam format
as well as practice questions and
answers and full mock exams to
ensure you are fully prepared for
your exam.
Tips for success
STARTEDGETTING
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Study plan checklist
Calculate the number of weeks
from now until your exam
date and draw up a plan – see
the example to the left and a possible proforma for you to
use on the next page
You may need to add or take away weeks depending on
your own circumstances
Block out days/half days/
evenings already committed to family/social events
Plan study periods – evenings/
half days/full days, aiming for roughly one evening/half day
per chapter of your study text
Leave a six week period for the revision and final preparation
phases
Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 1 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 2 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 3 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 4 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 5 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 6 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 7 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 8 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 9 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 10 Monday Tuesday Wednesday Thursday Friday Saturday Sunday
Week 11 REVISION
Week 12 REVISION
Week 13 REVISION
Week 14 REVISION
Week 15 REVISION
Week 16 REVSION AND FINAL PREPARATION
Evening study period Daytime study period Other commitments
Getting started – Draw up your study plan
STARTEDGETTING
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Review the syllabus
& study guide
➤
This gives you an understanding of the aims and objectives of the exam, learning outcomes and exam structure
Scan the most recent past
exam for P
➤
The most recent exam provides you with a clear picture of how P4 will be assessed and how the exam is structured as well as the likely style and range of questions that you could see in the real exam
Read the examiner's approach
article and listen to the
examiner's approach interview
➤
Using these at the start of your studies will help you understand the focus of the exam by concentrating on the exam structure, question style, exam technique and tips as well as pitfalls to avoid – see extracts from the examiner's approach article over the page
Review the examiner's reports
from the last four sittings
➤
These provide feedback on students’ performance after each exam session, highlight problem areas that students need to improve on and tell you what the examining teams are looking for; these are critical to your success in passing P
Read the exam technique articles for P
➤
The four articles – Stepping up from Paper F9 to Paper P4, Passing the Professional level papers - professional marks, How to tackle exams - a marker’s perspective and Passing the Professional level papers – will provide you with a head start in terms of knowing what to expect and how to approach exam standard questions
Familiarise yourself with
the formulae sheet
➤
You will be provided with this document in the exam and so you will not need to learn these formulae
Getting started – Get to know your exam
STARTEDGETTING
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Getting started – What the examiner has said about P
(extracts from the examiner’s approach article)
Comments on structure and layout of the exam
Section A now contains one compulsory 50-mark
question. This question is scenario-based and
the requirements come from different areas
of the syllabus. The question normally requires
candidates to perform complex computations,
evaluate and analyse information, discuss and
assess various options, and make judgments,
possibly based on explained and justified
assumptions. The question is substantive and
analytically complex. It requires candidates to
structure at least part of the answer in a formal
context for which four professional marks are
allocated. These professional marks are awarded
on the basis of the clarity and structure of the
answer. They may also be awarded for answers
that are presented in the required format.
So, for example, if a report is required, in order
to gain the professional marks, the answer should
be in a report format and consist of a title,
an introduction, other features as appropriate,
a conclusion, and make appropriate
use of appendices.
Comments on assumed knowledge
The principles underpinning Paper P4 are introduced and developed in Paper F9,
Financial Management. In Paper F9, the following essential areas are introduced and
developed: financial environment; investment appraisal; cost of capital; alternative
ideas of, and impact of changes to, the capital structure; sources of finance; dividend
policy; working capital management; risk management and business valuation.
Paper P4 explores these same areas, but at a more advanced level, and
considers problems and issues (many derived from real situations) relevant to
the highest-level financial management of an organisation. New areas specific
to Paper P4 include responsibility towards stakeholders, acquisitions and mergers,
corporate reconstruction and re organisation, the international business environment
and multinational organisations, and emerging issues. Finance managers need
more than a battery of theories and techniques to succeed – they also need a deep
understanding of the context in which they work. As a consequence, candidates
will be expected to demonstrate up-to-date understanding of the international
macroeconomic environment and the operation of those international institutions
that govern both trade and the operation of the financial markets. This is especially
important in the current global economic climate of uncertainty.
To be successful at this level, candidates must be able to demonstrate an integrated
understanding of the subject. Therefore, it is essential that candidates are able
to draw upon the knowledge, techniques and skills gained in Paper F9, and apply
these to Paper P4. Also knowledge gained from the other Fundamentals level
papers and from Papers P1, P2 and P3 will be useful in helping candidates
demonstrate an integrated approach.
STARTEDGETTING
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Use the control sheet relevant to
the Approved Content Provider's
materials you have purchased:
✓ Becker Professional Education – page 12
✓ BPP Learning Media – page 14
✓ Kaplan Publishing – page 16
Tick the box Content in the control
sheet once you have:
✓ Read through the introduction
to the chapter
✓ Actively read and understood each
chapter’s content
✓ Noted any additional commentary
and exam focus tips provided
✓ Worked through and understood
examples and illustrations of
concepts given
Tick the box Quiz/Test in the control
sheet once you have:
✓ Attempted the quiz at the end of the
chapter (if you are using Becker or BPP
material) or the test your understanding
questions throughout the chapter
(if you are using Kaplan material)
Tick the box Questions in the control
sheet once you have:
✓ Attempted the questions referred to in
the question bank – some of these you
should do in full but others you can just
draw up a plan for, depending on the
time you have available
✓ Compared your answer, or plan, with the
solution given and understood where you
did well or not so well and why
Tick the box ACCA related resources
in the control sheet once you have:
✓ Read / viewed the related ACCA article /
video signposted
Learning phase – Get the most out of your control sheet
LEARNING
PHASE
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Learning phase – Tips for success
✓ Actively read the material
- ask yourself ‘do
I understand this?’
If not re-read and
re-work examples –
if you still struggle,
make a note and come
back to it during the
revision phase.
✓ Scan headings before
going into the detail to
give you an idea of the
content first and consider
highlighting, underlining,
making notes, drawing
pictures or mind maps –
whatever helps you
to remember.
✓ Consider using the
additional resources
provided by the
Approved Content
Providers including for
example passcards
or pocket notes to help
you remember the key
knowledge areas.
✓ Always work through the
questions signposted –
it is vital that you practise
questions throughout the
learning phase as this
will ensure that you are
applying the knowledge
you learn as you progress.
✓ Make sure you use the
ACCA resources to help
your understanding –
these give you real insight
to help you in your exam.
✓ If you find you are not
covering all of the material
in each study period, build
some extra time into your
planner – everyone works
at a different pace.
✓ Keep an eye on Student
Accountant for any
relevant articles.
✓ Visit the ACCA Learning
Community regularly to
view new video content
and to join online study
events.
✓ There are PER (Practical
Experience Requirement)
objectives associated
with specific syllabus
areas and, if possible,
you should try to gain
experience in these
alongside your studying
as this will help you to
put your studies into a
workplace context and
reinforce what you have
learned.
✓ Try to read a good quality
business journal or
newspaper regularly and
use this to help bring your
studies to life by linking
your learning into what
you are reading.
Tips for success
LEARNING
PHASE
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Learning phase – Control sheet for Becker Professional Education
When watching the study support videos, focus at this stage on the technical aspects – you will watch these again during the revision phase and at that point you will be able to focus more on the exam technique aspects.
Chapter Content Quiz/Test Questions ACCA related resources ✓ tick the boxes below when complete
16 The economic environment for multi-nationals
- Securitisation and tranching
- Aspects of Islamic finance
- Islamic finance – theory and practical use of sukuk bonds 17 International operations
18 Financial statement analysis
- Economic value added versus profit-based measures of performance – part 1
- Economic value added versus profit-based measures of performance – part 2
Further ACCA resources relevant for this exam
- Conditional probability
- Myopic management
- The European debt crisis
- Risk management
LEARNING
PHASE
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Learning phase – Control sheet for BPP Learning Media
Chapter Content Quiz/Test Questions ACCA related resources ✓ tick the boxes below when complete Introduction
1 The role and responsibility of senior financial executive /advisor
2 Financial strategy formulation
- Economic value added versus profit-based measures of performance – part 1
- Economic value added versus profit-based measures of performance – part 2 3a Conflicting stakeholder interests 3b Ethical issues in financial management
3c Impact of environmental issues on corporate objectivesand governance
4 Trading and planning in a multinational environment 5 Discounted cash flow techniques • Modified internal rate of return
6 Application of option pricing theory in investment decisions •^ Study support video: Applying the option pricing theory to investments
7a Impact of financing on investment decisions and adjusted present values
- Aspects of Islamic finance
- Islamic finance – theory and practical use of sukuk bonds
- Bond valuation and bond yields
- Cost of capital, gearing and CAPM – part 1
- Cost of capital, gearing and CAPM – part 2
- Being an angel 7b Valuation and the use of free cash flows • Business valuations
8 International investment and financing decisions
- International project appraisal – part 1
- International project appraisal – part 2 9 Acquisitions and mergers vs other growth strategies 10 Valuation of acquisitions and mergers 11 Regulatory framework and processes 12 Financing mergers and acquisitions 13 Financial reconstructions 14 Business reorganisation 15 The role of the treasury function in multinational organisations • Securitisation and tranching
16 The use of financial derivatives to hedge against foreignexchange risk • Exchange traded foreign exchange derivatives
When watching the study support videos, focus at this stage on the technical aspects – you will watch these again during the revision phase and at that point you will be able to focus more on the exam technique aspects.
LEARNING
PHASE
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Learning phase – Control sheet for Kaplan Publishing
Chapter Content Quiz/Test Questions ACCA related resources ✓ tick the boxes below when complete Introduction 1 The role and responsibility of the financial manager 2 Investment appraisal • Modified internal rate of return
3 The financing decision • •^ Bond valuation and bond yieldsBeing an angel
4 The dividend decision
5
International operations and international investment appraisal
- International project appraisal – part 1
- International project appraisal – part 2 6 International operations – the financing decision and the dividend decision 7 Option pricing •^ Study support video: Applying the option pricing theory to investments 8 The weighted average cost of capital (WACC)
9 Risk adjusted WACC and adjusted present value • •^ Cost of capital, gearing and CAPM – part 1Cost of capital, gearing and CAPM – part 2
10 Corporate failure and reconstruction
- Economic value added versus profit-based measures of performance – part 1
- Economic value added versus profit-based measures of performance – part 2 11 An introduction to risk management 12 Hedging foreign exchange risk • Exchange traded foreign exchange derivatives
13 Hedging interest rate risk
- Interest rate risk management
- Determining interest rate forwards and their application to swap valuation 14 Strategic aspects of acquisitions 15 Business valuation • Business valuations
16 Topical issues in financial management
- Securitisation and tranching
- Aspects of Islamic finance
- Islamic finance – theory and practical use of sukuk bonds
Further ACCA resources relevant for this exam
- Conditional probability
- Myopic management
- The European debt crisis
- Risk management
When watching the study support videos, focus at this stage on the technical aspects – you will watch these again during the revision phase and at that point you will be able to focus more on the exam technique aspects.
LEARNING
PHASE
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Your checklist
Revisit areas you struggled
with during the learning phase
Ensure you are confident with
the knowledge needed to pass
the exam
Make sure you are able to apply that knowledge in questions
Revision phase
REVISION
PHASE
REVISION
PHASE
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Revision phase – Key resources
Review the examiner's approach article and examiner's
interview again in the context of what you have learnt
Remind yourself of areas that students often struggle with and obtain tips on how to ensure you do not make
the same mistakes by reviewing the examiner's reports
from the last four sittings again
View the study support video referred to in your control sheet again – this time focusing on the exam
technique aspects
Read the exam technique articles – Stepping up from Paper F9 to Paper P4, Passing the Professional
level papers - professional marks, How to tackle
exams - a marker’s perspective and Passing the
Professional level papers again – this time using the
techniques to help you practice questions
Make sure you read the study skills articles in
Student Accountant covering topics such as how
to overcome exam anxiety as well as checking the
Student Accountant Hub for any new technical articles related to P
✓ Don't give up easily – if you
really cannot understand
something then consider
posing a question on the
ACCA Learning Community –
if you found it difficult so will
have others.
✓ Don't forget there are
professional skills modules
which you might find useful
in giving you some practical
guidance when answering
questions.
Tips for success
REVISION
PHASE
STARTEDGETTING
LEARNING
PHASE
REVISION
PHASE
FINAL
PREPARATION
THE EXAM
APPENDIX
– LINKS
Revision phase – What the examiner has said about P
(extracts from the December 2014 examiner’s report)
Comments on question 1
Question one asked candidates to initially examine
whether the strategic aims of a privately-owned
company of diversification and of acquiring
under-valued companied were valid and why it was
being forced to sell one of its companies before
pursuing further acquisitions. The question then
asked candidates to provide a value of the company
being sold both to the seller and the acquirer,
incorporating synergic benefits. The question also
asked candidates to comment on the financial
impact of a project being considered by the target
company. Candidates were asked to evaluate
the impact of the sale using their computations
in the form of a report.
Many candidates found the calculations required
in this question difficult and appeared to spend
a significant amount of time on them. This created
pressure on them to complete the rest of the
requirements of the question in less time and also
the structure of the report was often unsatisfactory.
This meant that candidates failed to gain many
of the easier marks available for discussing
the assumptions and the majority of
the professional marks.
Comments on overall performance