ACCA Financial Management (FM, AFM) - 2026

I. Financial Management (FM)The aim of FM is to develop the knowledge and skills expected of a finance manager, in relation to investment, financing, and dividend policy decisions.The syllabus for Financial Management (FM) is designed to equip candidates with the skills that would be expected from a finance manager responsible for the finance function of a business. It prepares candidates for more advanced and specialist study in Advanced Financial Management (AFM).A Financial management function1. The nature and purpose of financial management2. Financial objectives and relationship with corporate strategy3. Stakeholders and impact on corporate objectives4. Financial and other objectives in not-for-profit organisationsB Financial management environment1. The economic environment for business2. The nature and role of financial markets and institutions3. The nature and role of money marketsC Working capital management1. The nature, elements and importance of working capital2. Management of inventories, accounts receivable, accounts payable and cash3. Determining working capital needs and funding strategiesD Investment appraisal1. Investment appraisal techniques2. Allowing for inflation and taxation in DCF3. Adjusting for risk and uncertainty in investment appraisal4. Specific investment decisions (lease or buy, asset replacement, capital rationing)E Business finance1. Sources of, and raising, business finance2. Estimating the cost of capital3. Sources of finance and their relative costs4. Capital structure theories and practical considerations5. Finance for small- and medium-sized entities (SMEs)F Business valuations1. Nature and purpose of the valuation of business and financial assets2. Models for the valuation of shares3. The valuation of debt and othe