Difference between FM and AFM

Although everything in Paper FM is examined again at Paper AFM (apart from the management of working capital) it is examined at a higher level.

There are more investment appraisal topics, much more detail on foreign exchange risk management and interest rate risk management, more on the capital asset pricing model and more on the valuation of businesses. There are several completely new topics (such as option pricing and the Macauley duration).

The structure of the exam is completely different with one 50 mark question (which always requires a report) and two 25 mark questions. The questions are more like ‘real-life’ scenarios requiring advice as well as calculations, rather than just testing whether you have learned the rules.

If you are deciding whether or not to choose AFM as one of your optional papers then look at the syllabus on the ACCA website, look at the index to our free lecture notes, and have a look at one or two recent past papers.