Financial Management

(F9) Syllabus rationale

September 2015 to June This is a narrative explaining how the syllabus is

structured and how the main capabilities are linked.
2016 The rationale also explains in further detail what the
examination intends to assess and why.

This syllabus and study guide are designed to help Detailed syllabus
with planning study and to provide detailed
information on what could be assessed in This shows the breakdown of the main capabilities
any examination session. (sections) of the syllabus into subject areas. This is
the blueprint for the detailed study guide.
THE STRUCTURE OF THE SYLLABUS AND
STUDY GUIDE Approach to examining the syllabus

Relational diagram of paper with other papers This section briefly explains the structure of the
examination and how it is assessed.
This diagram shows direct and indirect links
between this paper and other papers preceding or Study Guide
following it. Some papers are directly underpinned
by other papers, such as Advanced Performance This is the main document that students, learning
Management by Performance Management. These and content providers should use as the basis of
links are shown as solid line arrows. Other papers their studies, instruction and materials.
only have indirect relationships with each other Examinations will be based on the detail of the
such as links existing between the accounting and study guide which comprehensively identifies what
auditing papers. The links between these are shown could be assessed in any examination session.
as dotted line arrows. This diagram indicates where The study guide is a precise reflection and
you are expected to have underpinning knowledge breakdown of the syllabus. It is divided into sections
and where it would be useful to review previous based on the main capabilities identified in the
learning before undertaking study. syllabus. These sections are divided into subject
areas which relate to the sub-capabilities included
Overall aim of the syllabus in the detailed syllabus. Subject areas are broken
down into sub-headings which describe the detailed
This explains briefly the overall objective of the outcomes that could be assessed in examinations.
paper and indicates in the broadest sense the These outcomes are described using verbs
capabilities to be developed within the paper. indicating what exams may require students to
demonstrate, and the broad intellectual level at
Main capabilities which these may need to be demonstrated
(*see intellectual levels below).
This papers aim is broken down into several main
capabilities which divide the syllabus and study Learning Materials
guide into discrete sections.
ACCA's Approved Content Programme is the
Relational diagram of the main capabilities programme through which ACCA approves
learning materials from high quality content
This diagram illustrates the flows and links between providers designed to support study towards ACCAs
the main capabilities (sections) of the syllabus and qualifications.
should be used as an aid to planning teaching and
learning in a structured way. ACCA has three Approved Content Providers, Becker
Professional Education,
BPP Learning Media and Kaplan Publishing.

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ACCA 2015-2016 All rights reserved.
 For information about ACCA's progresses through each module and level. This
Approved Content Providers please go to reflects that at each stage of study there will be a
ACCA's Content Provider Directory. requirement to broaden, as well as deepen
capabilities. It is also possible that occasionally
The Directory also lists materials by other some higher level capabilities may be assessed at
publishers, these materials have not been quality lower levels.
assured by ACCA but may be helpful if used in
conjunction with approved learning materials or for LEARNING HOURS AND EDUCATION
variant exams where no approved content is RECOGNITION
available. You will also find details of Additional
Reading suggested by the examining teams and this The ACCA qualification does not prescribe or
may be a useful supplement to approved learning recommend any particular number of learning hours
materials. for examinations because study and learning
patterns and styles vary greatly between people and
ACCA's Content Provider Directory can be found organisations. This also recognises the wide
here diversity of personal, professional and educational
H http://www.accaglobal.com/uk/en/student/acca- circumstances in which ACCA students find
qual-student-journey/study-revision/learning- themselves.
providers/alp-content.html
As a member of the International Federation of
Relevant articles are also published in Student Accountants, ACCA seeks to enhance the education
Accountant and available on the ACCA website. recognition of its qualification on both national and
international education frameworks, and with
INTELLECTUAL LEVELS educational authorities and partners globally. In
doing so, ACCA aims to ensure that its qualifications
The syllabus is designed to progressively broaden are recognized and valued by governments,
and deepen the knowledge, skills and professional regulatory authorities and employers across all
values demonstrated by the student on their way sectors. To this end, ACCA qualifications are
through the qualification. currently recognized on the education frameworks in
several countries. Please refer to your national
The specific capabilities within the detailed education framework regulator for further
syllabuses and study guides are assessed at one of information.
three intellectual or cognitive levels:
Each syllabus contains between 23 and 35 main
Level 1: Knowledge and comprehension subject area headings depending on the nature of
Level 2: Application and analysis the subject and how these areas have been broken
Level 3: Synthesis and evaluation down.

Very broadly, these intellectual levels relate to the GUIDE TO EXAM STRUCTURE
three cognitive levels at which the Knowledge
module, the Skills module and the Professional level The structure of examinations varies within and
are assessed. between modules and levels.

Each subject area in the detailed study guide The Fundamentals level examinations contain
included in this document is given a 1, 2, or 100% compulsory questions to encourage
3 superscript, denoting intellectual level, marked at candidates to study across the breadth of each
the end of each relevant line. This gives an syllabus.
indication of the intellectual depth at which an area
could be assessed within the examination. However, The Knowledge module is assessed by equivalent
while level 1 broadly equates with the Knowledge two-hour paper based and computer based
module, level 2 equates to the Skills module and examinations.
level 3 to the Professional level, some lower level
skills can continue to be assessed as the student The Skills module examinations F5-F9 are all paper

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based three-hour papers containing a mix of GUIDE TO EXAMINATION ASSESSMENT
objective and longer type questions. The Corporate
and Business Law (F4) paper is a two- hour ACCA reserves the right to examine anything
computer based objective test examination which is contained within the study guide at any examination
also available as a paper based version from the session. This includes knowledge, techniques,
December 2014 examination session. principles, theories, and concepts as specified.

The Professional level papers are all three-hour For the financial accounting, audit and assurance,
paper based examinations, all containing two law and tax papers except where indicated
sections. Section A is compulsory, but there will be otherwise, ACCA will publish examinable
some choice offered in Section B. documents once a year to indicate exactly
what regulations and legislation could potentially be
For all three hour examination papers, ACCA has assessed within identified examination sessions..
introduced 15 minutes reading and planning time.
For paper based examinations regulation issued or
This additional time is allowed at the beginning of legislation passed on or before 31st August annually,
each three-hour examination to allow candidates to will be examinable from 1st September of the
read the questions and to begin planning their following year to 31st August t of the year after that.
answers before they start writing in their answer Please refer to the examinable documents for the
books. This time should be used to ensure that all paper (where relevant) for further information.
the information and exam requirements are properly
read and understood.
Regulation issued or legislation passed in
accordance with the above dates may be
During reading and planning time candidates may
examinable even if the effective date is in the future.
only annotate their question paper. They may not
write anything in their answer booklets until told to The term issued or passed relates to when
do so by the invigilator. regulation or legislation has been formally approved.

The Essentials module papers all have a Section A The term effective relates to when regulation or
containing a major case study question with all legislation must be applied to an entity transactions
requirements totalling 50 marks relating to this and business practices.
case. Section B gives students a choice of two from
three 25 mark questions. The study guide offers more detailed guidance on
the depth and level at which the examinable
Section A of both the P4 and P5 Options papers documents will be examined. The study guide
contain one 50 mark compulsory question, and should therefore be read in conjunction with the
Section B will offer a choice of two from three examinable documents list.
questions each worth 25 marks each.

Section A of each of the P6 and P7 Options papers

contains 60 compulsory marks from two questions;
question 1 attracting 35 marks, and question 2
attracting 25 marks. Section B of both these
Options papers will offer a choice of two from three
questions, with each question attracting 20 marks.

All Professional level exams contain four

professional marks.

The pass mark for all ACCA Qualification

examination papers is 50%.

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 Syllabus MAIN CAPABILITIES

AFM (P4) On successful completion of this paper candidates

should be able to:

A Discuss the role and purpose of the financial

FM (F9) management function
B Assess and discuss the impact of the
economic environment on financial
management
MA (F2) C Discuss and apply working capital
management techniques
D Carry out effective investment appraisal
AIM E Identify and evaluate alternative sources of
business finance
To develop the knowledge and skills expected of a F Discuss and apply principles of business
finance manager, in relation to investment, and asset valuations
financing, and dividend policy decisions. G Explain and apply risk management
techniques in business.

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

Financial
management function
(A)

Financial management environment (B)

Working capital
management (C)

Investment appraisal
(D)

Business Business valuations (F)

finance (E)

Risk management (G)

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RATIONALE

The syllabus for Paper F9, Financial Management,

is designed to equip candidates with the skills that
would be expected from a finance manager
responsible for the finance function of a business. It
prepares candidates for more advanced and
specialist study in Paper P4, Advanced Financial
Management

The paper, therefore, starts by introducing the role

and purpose of the financial management function
within a business. Before looking at the three key
financial management decisions of investing,
financing, and dividend policy, the syllabus explores
the economic environment in which such decisions
are made.

The next section of the syllabus is the introduction

of investing decisions. This is done in two stages -
investment in (and the management of) working
capital and the appraisal of long-term investments.

The next area introduced is financing decisions. This

section of the syllabus starts by examining the
various sources of business finance, including
dividend policy and how much finance can be
raised from within the business. It also looks at the
cost of capital and other factors that influence the
choice of the type of capital a business will raise.
The principles underlying the valuation of business
and financial assets, including the impact of cost of
capital on the value of business, is covered next.

The syllabus finishes with an introduction to, and

examination of, risk and the main techniques
employed in the management of such risk.

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 DETAILED SYLLABUS 2. Estimating the cost of capital

A Financial management function 3. Sources of finance and their relative costs

1. The nature and purpose of financial 4. Capital structure theories and practical
management considerations

2. Financial objectives and relationship with 5. Finance for small- and medium-sized entities
corporate strategy
F Business valuations
3. Stakeholders and impact on corporate
objectives 1. Nature and purpose of the valuation of
business and financial assets
4. Financial and other objectives in not-for-profit
organisations 2. Models for the valuation of shares

B Financial management environment 3. The valuation of debt and other financial assets

1. The economic environment for business 4. Efficient market hypothesis (EMH) and
practical considerations in the valuation of
2. The nature and role of financial markets and shares
institutions
G Risk management
3. The nature and role of money market
1. The nature and types of risk and approaches to
C Working capital management risk management

1. The nature, elements and importance of 2. Causes of exchange rate differences and
working capital interest rate fluctuations

2. Management of inventories, accounts 3. Hedging techniques for foreign currency risk

receivable, accounts payable and cash
4. Hedging techniques for interest rate risk
3. Determining working capital needs and funding
strategies

D Investment appraisal

1. Investment appraisal techniques

2. Allowing for inflation and taxation in

investment appraisal

3. Adjusting for risk and uncertainty in investment

appraisal

4. Specific investment decisions (lease or buy;

asset replacement, capital rationing)

E Business finance

1. Sources of, and raising business finance

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APPROACH TO EXAMINING THE SYLLABUS

The syllabus is assessed by a three-hour paper-

based examination.

All questions are compulsory. It will contain both

computational and discursive elements.
Some questions will adopt a scenario/case study
approach.

Section A of the exam comprises 20 multiple choice

questions of 2 marks each.

Section B of the exam comprises three 10 mark

questions and two 15 mark questions.

The two 15 mark questions will come from working

capital management, investment appraisal and
business finance areas of the syllabus. The section
A questions and the other questions in section B
can cover any areas of the syllabus.

Candidates are provided with a formulae sheet and

tables of discount and annuity factors

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 Study Guide i) managerial reward schemes such as share
options and performance-related pay
ii) regulatory requirements such as corporate
A FINANCIAL MANAGEMENT FUNCTION governance codes of best practice and stock
exchange listing regulations
1. The nature and purpose of financial
management 4. Financial and other objectives in not-for-profit
organisations
a) Explain the nature and purpose of financial
management.[1] a) Discuss the impact of not-for-profit status on
financial and other objectives.[2]
b) Explain the relationship between financial
management and financial and management b) Discuss the nature and importance of Value for
accounting.[1] Money as an objective in not-for-profit
organisations.[2]
2. Financial objectives and the relationship with
corporate strategy c) Discuss ways of measuring the achievement of
objectives in not-for-profit organisations.[2]
a) Discuss the relationship between financial
objectives, corporate objectives and corporate B FINANCIAL MANAGEMENT ENVIRONMENT
strategy.[2]
1. The economic environment for business
b) Identify and describe a variety of financial
objectives, including: [2] a) Identify and explain the main macroeconomic
i) shareholder wealth maximisation policy targets.[1]
ii) profit maximisation
iii) earnings per share growth b) Define and discuss the role of fiscal, monetary,
interest rate and exchange rate policies in
3. Stakeholders and impact on corporate achieving macroeconomic policy targets.[1]
objectives
c) Explain how government economic policy
a) Identify the range of stakeholders and their interacts with planning and decision-making in
objectives [2] business.[2]

b) Discuss the possible conflict between d) Explain the need for, and the interaction with,
stakeholder objectives [2] planning and decision-making in business of: [1]
i) competition policy
c) Discuss the role of management in meeting ii) government assistance for business
stakeholder objectives, including the iii) green policies
application of agency theory.[2] iv) corporate governance regulation.[2]

d) Describe and apply ways of measuring 2. The nature and role of financial markets and
achievement of corporate objectives institutions
including: [2]
i) ratio analysis, using appropriate ratios such a) Identify the nature and role of money and
as return on capital employed, return on capital markets, both nationally and
equity, earnings per share and dividend per internationally.[2]
share
ii) changes in dividends and share prices as b) Explain the role of financial intermediaries.[1]
part of total shareholder return
c) Explain the functions of a stock market and a
e) Explain ways to encourage the achievement of corporate bond market.[2]
stakeholder objectives, including: [2]

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d) Explain the nature and features of different c) Discuss, apply and evaluate the use of relevant
securities in relation to the risk/return trade- techniques in managing inventory, including
off.[2] the Economic Order Quantity model and Just-
in-Time techniques.[2]
3. The nature and role of money market
d) Discuss, apply and evaluate the use of relevant
a) Describe the role of the money markets in:[1] techniques in managing accounts receivable,
i) Providing short-term liquidity to the private including:
sector i) assessing creditworthiness [1]
and the public sector ii) managing accounts receivable [1]
ii) Providing short-term trade finance iii) collecting amounts owing [1]
iii) Allowing an organisation to manage its iv) offering early settlement discounts [2]
exposure to foreign currency risk and v) using factoring and invoice discounting [2]
interest rate risk. vi) managing foreign accounts receivable [2]

b) Explain the role of banks and other financial e) Discuss and apply the use of relevant
institutions in the operation of the money techniques in managing accounts payable,
markets.[2] including:
i) using trade credit effectively [1]
c) Explain the characteristics and role of the ii) evaluating the benefits of discounts for
principal money market instruments:[2] early settlement and bulk purchase [2]
i) Interest-bearing instruments iii) managing foreign accounts payable [1]
ii) Discount instruments
iii) Derivative products. f) Explain the various reasons for holding cash,
and discuss and apply the use of relevant
C WORKING CAPITAL MANAGEMENT techniques in managing cash, including:[2]
i) preparing cash flow forecasts to determine
1. The nature, elements and importance of future cash flows and cash balances
working capital ii) assessing the benefits of centralised
treasury management and cash control
a) Describe the nature of working capital and iii) cash management models, such as the
identify its elements.[1] Baumol model and the Miller-Orr model
iv) investing short-term
b) Identify the objectives of working capital
management in terms of liquidity and 3. Determining working capital needs and funding
profitability, and discuss the conflict between strategies
them.[2]
a) Calculate the level of working capital
c) Discuss the central role of working capital investment in current assets and discuss the
management in financial management.[2] key factors determining this level, including:[2]
i) the length of the working capital cycle and
2. Management of inventories, accounts terms of trade
receivable, accounts payable and cash ii) an organisations policy on the level of
investment in current assets
a) Explain the cash operating cycle and the role of iii) the industry in which the organisation
accounts payable and accounts receivable.[2] operates

b) Explain and apply relevant accounting ratios, b) Describe and discuss the key factors in
including: [2] determining working capital funding strategies,
i) current ratio and quick ratio including:[2]
ii) inventory turnover ratio, average collection i) the distinction between permanent and
period and average payable period fluctuating current assets
iii) sales revenue/net working capital ratio

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 ii) the relative cost and risk of short-term and c) Calculate and apply before- and after-tax
long-term finance discount rates.[2]
iii) the matching principle
iv) the relative costs and benefits of 3. Adjusting for risk and uncertainty in investment
aggressive, conservative and matching appraisal
funding policies
v) management attitudes to risk, previous a) Describe and discuss the difference between
funding decisions and organisation size [1] risk and uncertainty in relation to probabilities
and increasing project life.[2]
D INVESTMENT APPRAISAL
b) Apply sensitivity analysis to investment projects
1. Investment appraisal techniques and discuss the usefulness of sensitivity
analysis in assisting investment decisions.[2]
a) Identify and calculate relevant cash flows for
investment projects.[2] c) Apply probability analysis to investment
projects and discuss the usefulness of
b) Calculate payback period and discuss the probability analysis in assisting investment
usefulness of payback as an investment decisions.[2]
appraisal method.[2]
d) Apply and discuss other techniques of
c) Calculate discounted payback and discuss its adjusting for risk and uncertainty in investment
usefulness as an investment appraisal appraisal, including:
method.[2] i) simulation [1]
ii) adjusted payback [1]
d) Calculate return on capital employed iii) risk-adjusted discount rates [2]
(accounting rate of return) and discuss its
usefulness as an investment appraisal 4. Specific investment decisions (Lease or buy;
method.[2] asset replacement; capital rationing)

e) Calculate net present value and discuss its a) Evaluate leasing and borrowing to buy using
usefulness as an investment appraisal the before-and after-tax costs of debt.[2]
method.[2]
b) Evaluate asset replacement decisions using
f) Calculate internal rate of return and discuss its equivalent annual cost and equivalent annual
usefulness as an investment appraisal benefit.[2]
method.[2]
c) Evaluate investment decisions under single-
g) Discuss the superiority of discounted cash flow period capital rationing, including:[2]
(DCF) methods over non-DCF methods.[2] i) the calculation of profitability indexes for
divisible investment projects
h) Discuss the relative merits of NPV and IRR.[2] ii) the calculation of the NPV of combinations
of non-divisible investment projects
2. Allowing for inflation and taxation in DCF iii) a discussion of the reasons for capital
rationing
a) Apply and discuss the real-terms and nominal-
terms approaches to investment appraisal.[2] E BUSINESS FINANCE

b) Calculate the taxation effects of relevant cash 1. Sources of and raising business finance
flows, including the tax benefits of tax
allowable depreciation and the tax liabilities of a) Identify and discuss the range of short-term
taxable profit.[2] sources of finance available to businesses,
including: [2]
i) overdraft

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 ii) short-term loan i) Application of the dividend growth model
iii) trade credit and discussion of its weaknesses.
iv) lease finance ii) Explanation and discussion of systematic
and unsystematic risk.
b) Identify and discuss the range of long-term iii) Relationship between portfolio theory and
sources of finance available to businesses, the capital asset pricing model (CAPM)
including: [2] iv) Application of the CAPM, its assumptions,
i) equity finance advantages and disadvantages its
ii) debt finance
iii) lease finance b) Estimating the cost of debt
iv) venture capital i) irredeemable debt
ii) redeemable debt
c) Identify and discuss methods of raising equity iii) convertible debt
finance, including: [2] iv) preference shares
i) rights issue v) bank debt
ii) placing
iii) public offer c) Estimating the overall cost of capital
iv) stock exchange listing including.[2]:
i) Distinguishing between average and
d) Identify and discuss methods of raising short marginal cost of capital
and long term Islamic finance including[1] ii) Calculating the weighted average cost of
i) major difference between Islamic finance capital (WACC) using book value and
and the other forms of business finance. market value weightings
ii) The concept of riba (interest) and
how returns are made by Islamic financial 3. Sources of finance and their relative costs
securities.
iii) Islamic financial instruments a) Describe the relative risk-return relationship
available to businesses including and the relative costs of equity and debt.[2]
i) murabaha (trade credit)
ii) ijara (lease finance) b) Describe the creditor hierarchy and its
iii) mudaraba equity finance) connection with the relative costs of sources of
iv) sukuk (debt finance) finance.[2]
v) musharaka (venture capital)
c) Identify and discuss the problem of high levels
(note: calculations are not required) of gearing [2]

e) Identify and discuss internal sources of finance, d) Assess the impact of sources of finance on
including:[2] financial position, financial risk and
i) retained earnings shareholder wealth using appropriate
ii) increasing working capital management measures, including[2]:
efficiency i) ratio analysis using statement of financial
iii) the relationship between dividend policy position gearing, operational and financial
and the financing decision gearing, interest coverage ratio and other
iv) the theoretical approaches to, and the relevant ratios
practical influences on, the dividend ii) cash flow forecasting
decision, including legal constraints, iii) leasing or borrowing to buy
liquidity, shareholding expectations and
alternatives to cash dividends e) Impact of cost of capital on investments
including.[2]
2. Estimating the cost of capital i) the relationship between company value
and cost of capital.
a) Estimate the cost of equity including.[2] ii) the circumstances under which WACC can
be used in investment appraisal

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 iii) the advantages of the CAPM over WACC in 1. Nature and purpose of the valuation of
determining a project-specific cost of capital business and financial assets

the advantages of the CAPM over WACC in a) Identify and discuss reasons for valuing
determining a project-specific cost of capital businesses and financial assets.[2]
iv) Application of CAPM in calculating a
project-specific discount rate. b) Identify information requirements for valuation
and discuss the limitations of different types of
4. Capital structure theories and practical information.[2]
considerations
2. Models for the valuation of shares
a) Describe the traditional view of capital
structure and its assumptions.[2] a) Asset-based valuation models, including:[2]
i) net book value (statement of financial
b) Describe the views of Miller and Modigliani on position) basis.
capital structure, both without and with ii) net realisable value basis.
corporate taxation, and their assumptions.[2] iii) net replacement cost basis.

c) Identify a range of capital market imperfections b) Income-based valuation models, including:[2]

and describe their impact on the views of i) price/earnings ratio method.
Miller and Modigliani on capital structure.[2] ii) earnings yield method.

d) Explain the relevance of pecking order theory to c) Cash flow-based valuation models, including:[2]
the selection of sources of finance.[1] i) dividend valuation model and the dividend
growth model.
5. Finance for small and medium sized entities ii) discounted cash flow basis.
(SMEs)
3. The valuation of debt and other financial assets
a) Describe the financing needs of small
businesses.[2] a) Apply appropriate valuation methods to:[2]
i) irredeemable debt
b) Describe the nature of the financing problem ii) redeemable debt
for small businesses in terms of the funding iii) convertible debt
gap, the maturity gap and inadequate iv) preference shares
security.[2]
4. Efficient Market Hypothesis (EMH) and
c) Explain measures that may be taken to ease practical considerations in the valuation of
the financing problems of SMEs, including the shares
responses of government departments and
financial institutions.[1] a) Distinguish between and discuss weak form
efficiency, semi-strong form efficiency and
d) Identify and evaluate the financial impact of strong form efficiency [2]
sources of finance for SMEs, including sources
already referred to in syllabus section E1 and b) Discuss practical considerations in the
also [2] valuation of shares and businesses,
i) Business angel financing including:[2]
ii) Government assistance i) marketability and liquidity of shares
iii) Supply chain financing ii) availability and sources of information
iv) Crowdfunding / peer-to-peer funding iii) market imperfections and pricing
. anomalies
iv) market capitalisation
F BUSINESS VALUATIONS

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c) Describe the significance of investor b) Compare and evaluate traditional methods of
speculation and the explanations of investor foreign currency risk management.[2]
decisions offered by behavioural finance [1]
c) Identify the main types of foreign currency
G RISK MANAGEMENT derivatives used to hedge foreign currency risk
and explain how they are used in hedging.[1]
1. The nature and types of risk and approaches to (No numerical questions will be set on this
risk management topic)

a) Describe and discuss different types of foreign 4. Hedging techniques for interest rate risk
currency risk:[2]
i) translation risk a) Discuss and apply traditional and basic
ii) transaction risk methods of interest rate risk management,
iii) economic risk including:
i) matching and smoothing [1]
b) Describe and discuss different types of interest ii) asset and liability management [1]
rate risk:[1] ii) forward rate agreements [2]
i) gap exposure
ii) basis risk b) Identify the main types of interest rate
derivatives used to hedge interest rate risk and
2. Causes of exchange rate differences and explain how they are used in hedging.[1]
interest rate fluctuations (No numerical questions will be set on this
topic)
a) Describe the causes of exchange rate
fluctuations, including:
i) balance of payments [1]
ii) purchasing power parity theory [2]
iii) interest rate parity theory [2]
iv) four-way equivalence [2]

b) Forecast exchange rates using:[2]

i) purchasing power parity
ii) interest rate parity

c) Describe the causes of interest rate

fluctuations, including: [2]
i) structure of interest rates and yield curves
ii) expectations theory
iii) liquidity preference theory
iv) market segmentation

3. Hedging techniques for foreign currency risk

a) Discuss and apply traditional and basic

methods of foreign currency risk management,
including:
i) currency of invoice [1]
ii) netting and matching [2]
iii) leading and lagging [2]
iv) forward exchange contracts [2]
v) money market hedging [2]
vi) asset and liability management [1]

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 SUMMARY OF CHANGES TO F9

There are changes to the syllabus to reflect the latest business and educational developments affecting
this paper. These are summarised in the table below.
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

Amendments /additions

Section and subject area Syllabus content

B3ai) Wording amended to clarify the syllabus content in this
area
D4b) Wording amended to clarify the syllabus content in this
area
E5d) Wording amended to clarify the syllabus content in this
area and also for the addition of newer sources of
finance for SMEs

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