ACCA Advanced Financial Management (AFM) FAQs

1. What is the ACCA Advanced Financial Management (AFM) exam format?

The AFM exam is a 3-hour and 15-minute computer-based exam (CBE). It includes both multiple-choice questions and constructed response questions, requiring detailed calculations and analysis. Candidates must demonstrate advanced knowledge in financial management, including investment appraisal, risk management, and treasury functions .

2. What topics are covered in the AFM syllabus?

The AFM syllabus covers:

• Role and Responsibility of the Financial Manager: Understanding the senior financial executive’s role in meeting stakeholders’ needs and the impact of international financial institutions.
• Advanced Investment Appraisal: Evaluating potential investments and their financial and strategic consequences.

• Corporate Finance: Assessing acquisitions, mergers, and corporate
  reorganization strategies.
• Risk Management: Applying advanced treasury and risk management
  techniques.
• Advanced Financial Strategy: Valuation of businesses, real options in
  investment decisions, and international project appraisal .

3. How should candidates prepare for the AFM exam?

Effective preparation involves:

• Study Resources: Utilize ACCA-approved study texts and revision kits. OpenTuition and aCOWtancy offer free notes, lectures, and practice questions .
• Technical Articles and Videos: Access ACCA’s technical articles and topic explainers to deepen your understanding of complex areas .
• Practice with Past Papers: Regularly practice past exam questions to familiarize yourself with the exam format and improve time management skills.

4. What are some key tips for passing the AFM exam?

• Understand the Syllabus: Ensure thorough knowledge of all syllabus areas, focusing on both calculations and their real-world applications.
• Practice Calculations: Familiarize yourself with spreadsheet functions like NPV, IRR, and MIRR, which are available in the exam’s spreadsheet tool.
• Stay Updated on Financial Trends: Keep abreast of current financial trends and practices, as these can be relevant to exam scenarios.
• Ethical and Professional Judgment: Demonstrate professional judgment and ethical decision making in your answers .

5. Are formulae such as NPV and IRR available in the exam tools?

Yes, the spreadsheet tool in the AFM exam includes functions for NPV, IRR, and MIRR. Additionally, a separate spreadsheet space is provided for calculating Black-Scholes option pricing model values. Practicing these functions in the exam practice platform is recommended .

For more detailed information and resources, visit the ACCA Global AFM page and OpenTuition’s AFM section.

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