ACCA P5 Advanced Performance Management to apply relevant knowledge, skills and exercise professional judgement in selecting and applying strategic management accounting techniques in different business contexts and to contribute to the evaluation of the performance of an organisation and its strategic development.
On successful completion of this paper, candidates should be able to:
- Use strategic planning and control models to plan and monitor organisational performance
- Assess and identify key external influences on organisational performance
- Identify and evaluate the design features of effective performance management information and monitoring systems
- Apply appropriate strategic performance measurement techniques in evaluating and improving organisational performance
- Advise clients and senior management on strategic business performance evaluation and on recognizing vulnerability to corporate failure
The Advanced Performance Management syllabus further develops key aspects introduced in Paper F5, Performance Management, at the skills level and draws on aspects of the material covered from a more strategic and operational planning perspective in Paper P3, Business Analysis.
The syllabus introduces candidates to the strategic role of management accounting as a discipline for planning and controlling performance so that strategic objectives can be set, monitored and controlled. It also covers the impact of external factors on strategic management issues, such as macro-economic, fiscal, market and environmental impacts on performance. From appreciating the strategic context of performance management and the impact of wider factors, the syllabus examines, at an operational level, the issues relating to performance measurement systems and their design.
The syllabus then moves from performance management systems and their design to the scope and application of high-level performance measurement techniques in a variety of contexts, including not-for-profit organisations and multinational businesses. Having covered the strategic aspects of performance management and operational systems for the measurement and control of performance in a variety of contexts, candidates are then expected to synthesise this knowledge in the role of an advisor to senior management or independent clients on how to assess and control the performance of an entity, including the recognition of whether a business is facing difficulties or possibly failure.