ACCA Advanced Financial Management (AFM): study notes Area by area, with worked scenarios and quizzes.

1. 01A. Role of senior financial adviser in the multinational organisationHow a senior financial adviser turns analysis into advice for the board of a multinational, working within the policy framework the board has agreed. The module covers financial strategy (ratio analysis, capital structure, dividend policy, risk management and behavioural finance), ESG and ethical issues, international trade and the institutions and markets that shape it, and country and political risk in multinational planning. It ends with dividend capacity, remittances and transfer pricing across borders.7 lessons · 5h 55m+

   • The role and responsibility of the senior financial adviser50 min
   • Financial strategy formulation60 min
   • Corporate environmental, social, governance (ESG) and ethical issues55 min
   • Management of international trade and finance60 min
   • Strategic business and financial planning for multinational organisations55 min
   • Dividend policy in multinationals and transfer pricing60 min
   • Module 1 quiz15 min
2. 02B. Advanced investment appraisalHow a senior financial adviser values major investments and advises on them. The module refines NPV with MIRR, the return margin, duration, simulation and value at risk, values the flexibility in projects as real options with the Black-Scholes model, and brings financing into the appraisal through adjusted present value. It finishes with free cash flow valuation of companies and their debt, and the appraisal and financing of projects abroad.6 lessons · 6h 20m+

   • Discounted cash flow techniques70 min
   • Option pricing in investment decisions75 min
   • Financing and adjusted present valueFree preview80 min
   • Valuation using free cash flows70 min
3. 03C. Acquisitions and mergersWhy companies grow by acquisition rather than organically, how to classify and value synergies, why so many deals fail, and the alternative routes to a stock market listing. The module then values targets and combined companies with book value-plus, market and cash flow models, regearing betas when the deal changes risk and exposing the bootstrapping effect; compares the shareholder and stakeholder models of takeover regulation and the defences a target's board may use; and compares cash, share and mixed offers by their effect on EPS, gearing, control and each group of shareholders, followed by a quiz.5 lessons · 4h 15m+

   • Acquisitions and mergers versus other growth strategies55 min
   • Valuation for acquisitions and mergersFree preview75 min
   • Regulatory framework and processes50 min
   • Financing acquisitions and mergers
4. 04D. Corporate reconstruction and re-organisationHow a company in difficulty can be rescued by rewriting the claims on it, and how a group can be taken apart to create value. The module covers when a financial reconstruction is appropriate, how to test a scheme against liquidation for each class of stakeholder, and how the market and the providers of capital are likely to respond. It then covers sell-offs, demergers, carve-outs and the other forms of unbundling, and the financing of management buy-outs and buy-ins.3 lessons · 2h 25m+

   • Financial reconstruction65 min
   • Business re-organisation65 min
   • Module 4 quiz15 min
5. 05E. Treasury and advanced risk management techniquesThe role and organisation of a multinational's treasury, and how the derivatives markets it uses work: exchange-traded and OTC contracts, tick values, margin, basis risk and the option Greeks. The module then calculates and compares every main hedge, from forwards, money market hedges, currency futures and options, swaps and netting for foreign exchange risk to FRAs, interest rate futures, options, collars and swaps for interest rate risk, always ending with the recommendation a board needs, followed by a quiz.4 lessons · 3h 50m+

   • The treasury function in multinationals55 min
   • Derivatives to hedge foreign exchange risk80 min
   • Derivatives to hedge interest rate risk80 min
   • Module 5 quiz15 min
6. 06F. Professional skillsThe four professional skills that carry 20 of the 100 marks in every AFM exam: communication, analysis and evaluation, scepticism and commercial acumen. Each lesson explains what the skill means in AFM, sets a weak answer against a strong one on the same piece of financing or hedging advice, and shows you how to practise it. The module finishes with a quiz.5 lessons · 3h 15m+

   • Communication45 min
   • Analysis and evaluation45 min
   • Scepticism45 min
   • Commercial acumen45 min
   • Module 6 quiz15 min
7. 07G. Employability and technology skillsHow to sit the AFM computer-based exam: the structure of Sections A and B, budgeting your time, reading a case requirement, building exchange rate, option and hedging workings in the spreadsheet, and laying out a Section A report. The module finishes with a quiz on exam technique.2 lessons · 1h 5m+

   • The AFM exam: spreadsheets, workings and presentation50 min
   • Module 7 quiz15 min

• ARole of senior financial adviser in the multinational organisation
• BAdvanced investment appraisal
• CAcquisitions and mergers
• DCorporate reconstruction and re-organisation
• ETreasury and advanced risk management techniques
• FProfessional skills
• GEmployability and technology skills

Questions