Paper 3.7 – Strategic Financial Management

To view the detailed syllabus, click on the titles of Papers

Part 3: Objectives

The core papers concentrate on the key aspects of the accountant’s role in the strategic management of a business. They cover business planning, corporate reporting and financial management. These papers focus on testing each student’s ability to evaluate information and give sound commercial advice and recommendations within a professional ethical framework.

The introduction of choice at this level allows students to focus on technical areas which are particularly relevant to their chosen, or anticipated, fields of employment. The four option papers cover audit and assurance, advanced taxation, performance management and information systems management. If students are unsuccessful in an option paper(s), or if their employment circumstances change, they will be allowed to change their options or take additional options.*

* Students who wish to obtain UK Registered Auditor status will need to complete option paper 3.1 Audit and Assurance Services. ACCA is currently establishing practising certificate requirements for other countries with the relevant national professional bodies and statutory authorities.

The main aim of Part 3 is to establish evidence of competence to practise as a professional accountant in public practice, public sector or in industry and commerce. This requires candidates to demonstrate not only that they have mastered the range of required knowledge, skills and techniques, but also that they are able to apply them in a managerial context.

By this stage, knowledge has to be fully integrated in the way it is used by professionals with recognition of how the different subjects contribute to dealing with problems. This stage will present students with problems which test their skills and sensitivity in dealing with new contexts and unforeseen circumstances. In dealing with such situations, students will be expected to tailor solutions to problems appropriately and in a way which demonstrates their grasp of managerial skills.

Although emphasis will be given to practical issues, students will also be expected to criticize current practice and express views on developments in accounting. They will be expected to show evidence of the necessary personal qualities and interpersonal skills required of the professional accountant.

Skills to be tested in Part 3

Students should be able to demonstrate the ability to:

• draw on knowledge across all earlier papers studied
• integrate that knowledge effectively and use it creatively in applying concepts and techniques
• analyse and interpret data and information and present reasoned conclusions
• diagnose and formulate appropriate solutions to problems which indicate commercial awareness
• exercise judgement drawing on technical, political and commercial awareness in developing and evaluating alternatives and in proposing solutions
• adapt to new systems and circumstances and
• communicate analyses and conclusions effectively and with sensitivity for different purposes and to contrasting audiences with due emphasis on social expectations.

While the skills identified above will be tested directly by the questions set, in assessing the answers weight will be given to students’ ability to demonstrate a grasp of the following personal skills and attributes:

• strategic awareness - identifying the strategic needs of the organisation and contributing to strategic planning and management
• interpersonal skills - tact, sensitivity to political tensions and cultural differences, awareness of social, economic and political pressure, ability to influence

• management skills - resource management: people, material, time and money, management of the client, management of change, in particular, in technology and contingency planning and

• personal qualities - persistence in pursuing inquiries and probing responses, integrity, objectivity, independence and public responsibility