F9 chages

Dear John,
Please advise if the fallowing changes reflects your notes and lecture.
Paper F9, Financial Management
The changes made to Paper F9 are to better align the syllabuses of Papers F2, F9 and P4. Treasury management has now been introduced in Paper F9 in syllabus area B and portfolio theory is being added to Section F2. Areas of the syllabus that are felt to be adequately covered in Paper F2 have been removed from Section D of Paper F9. The effect of removing these areas mean that questions will not directly test these areas, but they will be examined as assumed knowledge from Paper F2.

Additions to Paper F9
The following areas have been added to the syllabus:

Section and subject area Syllabus content
B3
The treasury function (a) Describe the role of the money markets in:
i) providing short-term liquidity to industry and the public sector
ii) providing short-term trade finance
iii) allowing an organisation to manage its exposure to foreign currency risk and interest
rate risk
(b) Explain the role of banks and other financial institutions in the operation of the money markets.
(c) Explain the characteristics and role of the principal money market instruments:
i) interest-bearing instruments
ii) discount instruments
iii) derivative products.
F2
Estimating the cost of equity (b) Explain and discuss systematic and unsystematic risk, and the relationship between portfolio theory and the capital asset pricing model (CAPM).

Deletions from Paper F9
The following have been deleted explicitly from the syllabus and will be examined as assumed knowledge from Paper F2/FMA:

Section and subject area Syllabus content
D1
The nature of investment decisions and the appraisal process
(a) Distinguish between capital and revenue expenditure, and between non-current assets and working capital investment.
(b) Explain the role of investment appraisal in the capital budgeting process.
(c) Discuss the stages of the capital budgeting process in relation to corporate strategy.
D3
Discounted cash flow (DCF) techniques (a) Explain and apply concepts relating to interest and discounting, including:
i) the relationship between interest rates and inflation, and between real and nominal interest rates
ii) the calculation of future values and the application of the annuity formula
iii) the calculation of present values, including the present value of an annuity and perpetuity, and the use of discount and annuity tables
iv) the time value of money and the role of cost of capital in appraising investments