P4 Advanced Financial Management Videos

P4 (Advanced Financial Management) builds up on F9 (Financial Management). It is considered as one of the most difficult exam in Option papers of ACCA. It is indeed a difficult and a challenging paper. If you find it easy, then there are only 2 possibilities. Either you are a genius or you are booked on the wrong course. The students should be able to demonstrate sound understanding of the topics and this is only possible by proper studying and doing as many questions as you can.

The basic difference between F9 and P4 is that P4 has less topics and great depth whereas F9 had more topics and less depth. Although lot of topics of F9 come back in P4 but they cannot be relied upon solely to pass.

One good news about P4 is that we have a new examiner now who is Shishir Malde. December 2010 exam was the first paper written by him. If you ask anyone who attempted December paper, they will tell you that there was a clear difference in his approach as compared to the previous examiner, Bob Ryan. I personally think that overall the exam was fair. Although it had a surprise in question 1 which was a topic not many people thought will come up, but someone who had gone through the whole syllabus and understood the topics to a fair extent would have passed.

Shish wrote an article before the December attempt about his approach towards P4 and there were some points he made clear. Although we are expecting another article from him with all the changes to syllabus, but I think the first article was a clear indication what to expect from him in future.

One basic difference in Shish’s approach towards P4 as compared to Bob Ryan’s approach is that P4 exams now will be less technical and more analytical. P4 exams under Bob Ryan were extremely technical and less analytical. Now, the students need to make sure that they understand the topics inside out!!

The syllabus consists of 7 broad sections which are the following

1. Role and responsibility towards stakeholders

2. Economic environment for multinationals

3. Advanced investment appraisal

4. Acquisitions and mergers

5. Corporate reconstruction and re-organisation

6. Treasury and advanced risk management techniques

7. Emerging issues in finance and financial management

It will be a 3 hour paper divided in 2 sections. Section A will make up 50-70% of marks and will contain 2 compulsory questions. Section B will contain 3 questions and students will be required to attempt any 2 of them comprising of between 15 to 25 marks each. One of the questions from Section B will be a wholly written question.

In the end I want to remind you again that it is NOT easy. You will have to put your head down and study day by day and make sure you are comfortable with all the topics. So let’s give it our best shot. Remember, together we can and we will!

Good Luck!