Advanced Financial Management (AFM)

ADVANCED FINANCIAL MANAGEMENT (AFM)

Syllabus and
study guide
SEPTEMBER 2025 TO JUNE 2026
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) .................................. 14
7. Approach to examining the syllabus ................................................................................ 14
8. Relational diagram linking Advanced Financial Management (AFM) with other exams ... 15
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 ..................................................................... 20

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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

This diagram illustrates the flows and links between the main capabilities of the syllabus and
should be used as an aid to planning teaching and learning in a structured way.

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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 international regulations on money

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

d) Discuss the role of international financial 6. Dividend policy in multinationals and

institutions within the context of a transfer pricing
globalised economy, with particular
attention to (the Fed, Bank of England, a) Determine a corporation’s dividend
European Central Bank and the Bank of capacity and its policy given:[3]
Japan).[2] i) The corporation’s short- and long-
term reinvestment strategy
e) Discuss the role of the international ii) The impact of capital reconstruction
financial markets with respect to the programmes such as share
management of global debt, the financial repurchase agreements and new
development of the emerging economies capital issues on free cash flow to
and the maintenance of global financial equity.
stability.[2] iii) The availability and timing of central
remittances
f) Discuss the significance to the iv) The corporate tax regime within
organisation, of latest developments in the host jurisdiction.
the world financial markets such as the v) The organisational policy on the
causes and impact of the recent financial transfer pricing of goods and
crisis; growth and impact of dark pool services across international borders.
trading systems; the removal of barriers
to the free movement of capital; and the

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 Advanced Financial Management (AFM)

b) Advise, in the context of a specified 2. Application of option pricing theory in

capital investment programme, on an investment decisions
organisation’s current and projected
dividend capacity.[3] a) Apply the Black-Scholes Option Pricing
(BSOP) model to financial product
valuation and to asset valuation:[3]
B Advanced investment i) Determine and discuss, using
appraisal published data, the five principal
drivers of option value (value of
1. Discounted cash flow techniques the underlying, exercise price,
time to expiry, volatility and the
a) Evaluate the potential value added to an risk-free rate)
organisation arising from a specified ii) Discuss the underlying
capital investment project or portfolio assumptions, structure,
using the net present value (NPV) application and limitations of the
model.[3] BSOP model.
Project modelling should include explicit
treatment and discussion of: b) Evaluate embedded real options within a
i) Inflation and specific price project, classifying them into one of the
variation real option archetypes.[3]
ii) Taxation including tax allowable
depreciation and tax exhaustion c) Assess, calculate and advise on the
iii) Capital rationing. Multi-period value of options to delay, expand,
capital rationing limited to discussion redeploy and withdraw using the BSOP
only model.[3]
iv) Probability analysis and
sensitivity analysis when
3. Impact of financing on investment
adjusting for risk and uncertainty
decisions and adjusted present
in investment appraisal
values
v) Risk adjusted discount rates
vi) Project duration as a measure of
a) Identify and assess the appropriateness
risk.
of the range of sources of finance
available to an organisation including
b) Outline the application of Monte Carlo
equity, debt, hybrids, lease finance,
simulation to investment appraisal.[2]
venture capital, business angel finance,
Candidates will not be expected to
private equity, asset securitisation and
undertake simulations in an examination
sale, Islamic finance and security token
context but will be expected to
offerings. Including assessment on the
demonstrate an understanding of:
financial position, financial risk and the
i) The significance of the
value of an organisation.[3]
simulation output and the
assessment of the likelihood of
b) Discuss the role of, and developments
project success
in, Islamic financing as a growing
ii) The measurement and
source of finance for organisations;
interpretation of project value at
explaining the rationale for its use, and
risk.
identifying its benefits and
deficiencies.[2]
c) Establish the potential economic return
(using internal rate of return (IRR) and
c) Discuss the role of green finance for
modified internal rate of return) and
organisations pursuing an
advise on a project’s return margin.
environmental/sustainable agenda.[2]
Discuss the relative merits of NPV and
IRR.[3]

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 Advanced Financial Management (AFM)

d) Calculate the cost of capital of an k) Assess the impact of a significant capital

organisation, including the cost of equity investment project upon the reported
and cost of debt, based on the range of financial position and performance of
equity and debt sources of finance. the organisation taking into account
Discuss the appropriateness of using alternative financing strategies.[3]
the cost of capital to establish project
and organisational value, and discuss 4. Valuation and the use of free cash
its relationship to such value.[3] flows

e) Calculate and evaluate project specific a) Apply asset based, income based and
cost of equity and cost of capital, cash flow based models to value equity.
including their impact on the overall cost Apply appropriate models, including term
of capital of an organisation. structure of interest rates, the yield curve
Demonstrate detailed knowledge of and credit spreads, to value corporate
business and financial risk, the capital debt.[3]
asset pricing model and the relationship
between equity and asset betas.[3] b) Forecast an organisation’s free cash flow
and its free cash flow to equity (pre and
f) Assess an organisation’s debt exposure post capital reinvestment).[3]
to interest rate changes using the
simple Macaulay duration and modified c) Advise on the value of an organisation
duration methods.[3] using its free cash flow and free cash
flow to equity under alternative horizon
g) Discuss the benefits and limitations of and growth assumptions.[3]
duration including the impact of
convexity.[3] d) Explain the role of option pricing models,
such as the BSOP model, in the
h) Assess the organisation’s exposure to assessment of the value of equity, the
credit risk, including:[3] value of debt and of default risk.[2]
i) Explain the role of, and the risk
assessment models used by the 5. International investment and
principal rating agencies financing decisions
ii) Estimate the likely credit spread over
risk free a) Assess the impact upon the value of a
iii) Estimate the organisation’s current project of alternative exchange rate
cost of debt capital using the assumptions.[3]
appropriate term structure of interest
rates and the credit spread. b) Forecast project or organisation free
cash flows in any specified currency and
i) Assess the impact of financing and determine the project’s net present value
capital structure upon the organisation or organisation value under differing
with respect to:[3] exchange rate, fiscal and transaction
i) Modigliani and Miller propositions, cost assumptions.[2]
before and after tax
ii) Static trade-off theory c) Evaluate the significance of exchange
iii) Pecking order propositions controls for a given investment decision
iv) Agency effects. and strategies for dealing with restricted
remittance.[3]
j) Apply the adjusted present value
technique to the appraisal of investment d) Assess and advise on the costs and
decisions that entail significant benefits of alternative sources of finance
alterations in the financial structure of available within the international equity
the organisation, including their fiscal and bond markets.[3]
and transactions cost implications.[3]

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 Advanced Financial Management (AFM)

C Acquisitions and mergers c) Apply appropriate methods, such as:

risk-adjusted cost of capital, adjusted net
1. Acquisitions and mergers versus present values and changing price-
other growth strategies earnings multipliers resulting from the
acquisition or merger, to the valuation
a) Discuss the arguments for and against process where appropriate.[3]
the use of acquisitions and mergers as a
method of corporate expansion.[2] d) Demonstrate an understanding of the
procedure for valuing high growth start-
b) Evaluate the corporate and competitive ups and loss making companies.[2]
nature of a given acquisition proposal.[3]
3. Regulatory framework and processes
c) Advise upon the criteria for choosing an
appropriate target for acquisition.[3] a) Demonstrate an understanding of the
principal factors influencing the
d) Discuss the reasons for the frequent development of the regulatory framework
failure of acquisitions to enhance for mergers and acquisitions globally
shareholder value as expected, including and, in particular, be able to compare
the problem of overvaluation.[3] and contrast the shareholder versus the
stakeholder models of regulation.[2]
e) Evaluate, from a given context, the
potential for synergy separately b) Identify the main regulatory issues which
classified as:[3] are likely to arise in the context of a
i) Revenue synergy given offer and
ii) Cost synergy i) assess whether the offer is likely
iii) Financial synergy. to be in the shareholders’ best
interests
f) Evaluate the use of alternative methods ii) advise the directors of a target
as a way of obtaining a stock market entity on the most appropriate
listing; including special purpose defence if a specific offer is to be
acquisition companies (SPACs), direct treated as hostile.[3]
listings, dutch auctions and reverse
takeovers.[3] 4. Financing acquisitions and mergers

2. Valuation for acquisitions and a) Compare the various sources of

mergers financing available for a proposed cash-
based acquisition.[3]
a) Estimate the potential near-term and
continuing growth levels of a b) Evaluate the advantages and
corporation’s earnings using both disadvantages of a financial offer for a
internal and external measures.[3] given acquisition proposal using pure or
mixed mode financing and recommend
b) Discuss, assess and advise on the value the most appropriate offer to be made.[3]
created from an acquisition or merger of
both quoted and unquoted entities using c) Assess the impact of a given financial
models such as:[3] offer on the reported financial position
i) ’Book value-plus’ models and performance of the acquirer.[3]
ii) Market based models
iii) Cash flow models, including free
cash flows.
Taking into account the changes in the
risk profile and risk exposure of the
acquirer and the target entities

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 Advanced Financial Management (AFM)

D Corporate reconstruction and iii) The source of basis risk and how
re-organisation it can be minimised.
iv) Risks such as delta, gamma and
1. Financial reconstruction theta, and how these can be
managed.
a) Assess an organisational situation
and determine whether a financial 2. The use of financial derivatives to
reconstruction is an appropriate hedge against forex risk
strategy for a given business
situation.[3] a) Assess the impact on an organisation to
exposure in translation, transaction and
b) Assess the likely response of the economic risks and how these can be
capital market and/or individual managed.[3]
suppliers of capital to any
reconstruction scheme and the impact b) Evaluate, for a given hedging
their response is likely to have upon the requirement, which of the following is the
value of the organisation.[3] most appropriate strategy, given the
nature of the underlying position and the
2. Business re-organisation risk exposure:[3]
i) The use of the forward exchange
a) Recommend, with reasons, strategies for market and the creation of a money
unbundling parts of a quoted company.[3] market hedge
ii) Synthetic foreign exchange
b) Evaluate the likely financial and other agreements (SAFEs)
benefits of unbundling.[3] iii) Exchange-traded currency futures
contracts
c) Advise on the financial issues relating to iv) Currency swaps
a management buy-out and buy-in.[3] v) FOREX swaps
vi) Currency options.
E Treasury and advanced risk c) Advise on the use of bilateral and
multilateral netting and matching as tools
management techniques for minimising FOREX transactions costs
and the management of market barriers
1. The role of the treasury function in to the free movement of capital and
multinationals other remittances.[3]
a) Discuss the role of the treasury 3. The use of financial derivatives to
management function within:[3] hedge against interest rate risk
i) The short term management of
the organisation’s financial a) Evaluate, for a given hedging
resources requirement, which of the following is the
ii) The longer term maximisation of most appropriate given the nature of the
corporate value underlying position and the risk
iii) The management of risk exposure:[3]
exposure. i) Forward Rate Agreements (FRAs)
ii) Interest rate futures
b) Discuss the operations of the derivatives iii) Interest rate swaps
market, including:[3] iv) Interest rate options (including
i) The relative advantages and collars).
disadvantages of exchange traded
versus OTC agreements
ii) Key features, such as standard
contracts, tick sizes, margin
requirements and margin trading

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 Advanced Financial Management (AFM)

F Professional skills of an enquiring mind, beyond what is

immediately apparent.[3]
1. Communication
b) Question opinions, assertions and
a) Inform concisely, objectively and assumptions, by seeking
unambiguously, adopting a suitable justifications and obtaining sufficient
style and format, using appropriate evidence for either their support and
technology.[3] acceptance or rejection.[3]

b) Persuade using compelling and c) Challenge and critically assess the

logical arguments, demonstrating the information presented or decisions
ability to counter argue where made, where this is clearly justified,
appropriate.[3] in the wider professional, ethical,
organisational, or public interest.[3]
c) Clarify and simplify complex issues
to convey relevant information in a 3. Commercial acumen
way that adopts an appropriate tone
and is easily understood by and a) Demonstrate awareness of
reflects the requirements of the organisational and external factors,
intended audience.[3] which will affect the financial
management decisions of an
2. Analysis and evaluation organisation.[3]

a) Investigate relevant information from b) Recognise key issues in a given

a range of sources, using appropriate scenario and use judgement in
analytical techniques to estimate proposing and recommending
outcomes, assist in decision-making commercially viable solutions.[3]
and to identify opportunities or
solutions.[3] c) Show insight and perception in
understanding financial issues and
b) Consider information, evidence and wider organisational matters,
findings carefully, reflecting on their demonstrating acumen in arriving at
implications and how they can be appropriate recommendations.[3]
used in the interests of the wider
organisational goals.[3] G Employability and technology
c) Assess and apply appropriate
skills
judgement when considering
1. Use computer technology to
organisational issues, problems or
efficiently access and manipulate
when making financial management
relevant information
decisions; taking into account the
implications of such decisions on the
2. Work on relevant response options,
organisation and those affected.[3]
using available functions and
technology, as would be required in
d) Appraise information objectively with
the workplace
a view to balancing the costs, risks,
benefits and opportunities, before
3. Navigate windows and computer
recommending appropriate solutions
screens to create and amend
or decisions.[3]
responses to exam requirements,
3. Scepticism using the appropriate tools

a) Explore the underlying reasons for a 4. Present data and information

given situation, applying the attitude 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.

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 Advanced Financial Management (AFM)

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
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.

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 Advanced Financial Management (AFM)

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.

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.

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 Advanced Financial Management (AFM)

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.

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.

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 Advanced Financial Management (AFM)

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 2025 to 31 March 2026 will examine the Finance Act 2024 and any
examinable legislation which is passed outside of the Finance Act before 31 May 2024.

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.

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 Advanced Financial Management (AFM)

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
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.

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