FFM Foundations in Financial Management aims to develop knowledge and understanding of ways organisations finance their operations, plan and control cash flows, optimise their use of working capital and allocate resources to long term investment projects.
The syllabus for FFM, Managing Finances, introduces students to different ways of managing finance within an organisation with the aim of enhancing business performance. This includes planning and controlling of cash flow in both the short and long term, how to manage capital investment decisions and managing trade credit for an efficient flow of cash.
The syllabus starts by introducing the principles of effective working capital management, and the impact working capital has on an organisation’s cash flow. It then looks at the techniques for forecasting cash to aid an organisation in planning its cash needs.
The next area of the syllabus looks at the different ways of managing cash in the short, medium and long term, including investing funds in capital projects. It finally looks at procedures for effective credit management to maximise flow of cash to the business.
On successful completion of this paper, candidates should be able to:
- Explain and apply the principles of working capital management
- Apply a range of accounting techniques used to forecast cash within the organisation
- Describe methods and procedures for managing cash balances
- Explain principles in making medium to long term financing decisions
- Explain and apply principles in making capital investment decisions
Describe credit management methods and procedures
APPROACH TO EXAMINING THE SYLLABUS
The syllabus is assessed by a two hour paper based examination. Questions will assess all parts of the syllabus and will include both computational and non computational elements. The examination will consist of two sections structured as follows:
- Section A
Ten compulsory multiple choice questions each worth 1, 2 or 3 marks 20
- Section B
Six compulsory questions
Q1 (20 marks ) 20
Q2, 3 & 4 (10 marks each) 30
Q5 & 6 (15 marks each) 30