ACCA AFM Technical articles. Advanced Financial Management

by Eduyush Team

The Association of Chartered Certified Accountants (ACCA) is a professional body offering the Certified Accountant qualification. The ACCA AFM technical articles are an excellent way for students to deepen their understanding of the subject. 

The articles cover various topics, from an introduction to ethics and governance to more specific areas like financial reporting and auditing. Experts in the field write them to ensure you're getting accurate and up-to-date information. 

Whether you're studying for your exams or want to brush up on your ACCA AFM knowledge, these articles are a great resource. 
 

AFM Technical articles

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 (A)

Patterns of behaviour

Behavioural finance has the potential to explain how decision makers take financial decisions in real life and why their seemingly irrational choices might not always lead them down a path of destruction. This article looks at how behaviour may influence an individual's perspective on investments and those from large corporations that must make hard-hitting trades daily while maintaining stability within company borders.

Risk management

This article delves into situations where effective risk management strategies can contribute to enhancing a corporation's value.

Evaluate potential investment decisions and assessing their financial and strategic consequences, both domestically and internationally (B)

Conditional probability

How do you know what's going to happen? Sometimes, the best way of learning is by looking at all possible outcomes and their associated chances. This article will teach us how to assess whether a particular decision is worth taking without regret!

Using real options when making financial strategy decisions

The article discusses how to assess individual projects with option valuation and provides a case study on evaluating portfolios of these types. It then goes into more detail about interdependent investments for those unfamiliar or who want further clarification.

Investment appraisal and real options

The consequences of accurate options calculations can give rise to some interesting complications. These limitations are often overcome with creative solutions. However, they should not be overlooked when making decisions about your company's future!

Securitization and tranching

The current financial crisis has led many people to question the stability of our economy and how this issue may impact it. The security aspects associated with securitization are still relevant for students studying AFM, whether they're interested in finance or not!

International project appraisal – part 1

The International Project Appraisal syllabus is a topic that must be studied carefully to answer any exam question on this subject. The first part of my article will cover what you need for AFM study, emphasizing Section B-25 mark questions and how they can help your understanding when answering them correctly at the highest level possible!

International project appraisal – part 2

The importance of international project appraisal within the Advanced Financial Management (AFM) syllabus demonstrated how one should tackle an upcoming Section B question worth 25 marks. 

This follow-up piece looks at tackling an existing internationally based task that could arise in either section A or C, with 50 total possible points available for completion by your team members on their behalf.

Aspects of Islamic finance

Islamic finance is a rapidly growing industry that has the potential to quintuple its worldwide revenue by 2020. This article provides an overview of this dynamic field and extends explanations given in 'Islamic Finance - Theory & Practical Use Of Sukuk Bonds' With such tremendous growth ahead, it's crucial for anyone who wishes they could offer Sukuk bonds as well-to learn about what makes them so unique!.

Islamic finance – theory and practical use of Sukuk bonds

Bond valuation and bond yields

Bonds, like stocks and other financial assets, are often valued based on their yield to maturity. 

Assess and plan acquisitions and mergers as an alternative growth strategy (C)

Alternative methods of listing

This article starts by concisely summarizing the conventional method that businesses have employed to secure a listing on the stock market, namely an initial public offering (IPO). It then explores various alternative strategies such as Dutch auctions, special purpose acquisition companies, and direct listings, examining the pros and cons of each approach.

Reverse takeovers

Reverse takeovers are an increasingly common way for private equity firms to repurchase their firm from the investors they have bought it. This article aims not only to explain reverse takeover but also to discuss potential benefits and drawbacks associated with this strategy.

Business valuations

The AFM studies will help you tackle a business valuation question. These advanced topics are not covered in other courses, so it's best that starting from this module onwards, all your worries about finance disappear!

How to answer a foreign exchange risk management question

Evaluate and advise on alternative corporate re-organisation strategies (D)

Basis risk

The idea of basis risk sounds pretty confusing, but it's quite simple. Basis Risk occurs when the price either goes up or down depending on what happens in relationship with a futures contract created to hedge any potential losses from fluctuations within an asset's market value.

Apply and evaluate alternative advanced treasury and risk management techniques (E)

How to answer an interest rate risk management question

This article gives you the lowdown on what to expect from your interest rate risk management consultation and how it will help.

Currency swaps

Currency Swaps are often used by companies who need to access capital in another country. They allow two parties with different currency values ​​to exchange one type of funding for another, effectively getting rid of or changing their currencies at no cost!

Exchange-traded foreign exchange derivatives.

The article considers foreign exchange futures and options using actual market data and focuses on other areas of significant importance.

They are determining interest rate forwards and their application to swap valuation.

Interest rate forwards is determined by looking at the spot yield curve before considering what they mean and how to use them to assess interest swap values.

Risk management

This article explores how a company can increase its worth by managing risk.

Summary

 If you want to deepen your understanding of ACCA AFM, the Association of Chartered Certified Accountants (ACCA) has a wealth of information. Their website features articles written by experts in the field, covering everything from ethics and governance to financial reporting and auditing. And if you're looking for even more support as you prepare for the exam, BPP offers books and coaching that can help you achieve your goals. Thanks for following our blog!


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