ACCA · Optional
Advanced Financial Management
Master advanced treasury and risk management techniques, business valuations, and investment appraisal. Prepare to advise senior management on complex financial decisions in multinational organisations.
3h 15m
Exam length
50%
Pass mark
Computer-Based Exam (CBE)
Format
March, June, September, December
Sittings
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ACCA Advanced Financial Management
The Advanced Financial Management (AFM) course is a notable segment of the ACCA strategic professional courses. AFM stands as one of the more popular ACCA exams that students undertake. It actively builds upon the foundational concepts taught in the FM course, emphasizing the intricacies of managing business finances.
As an advanced-level ACCA paper, it further explores the principles introduced in Financial Management. Students will be tasked with proposing financial management decisions with potential organization-wide implications, showcasing the professional judgment typical of a seasoned financial expert, applying relevant knowledge and skills, and quickly interpreting detailed questions.
The Advanced Financial Management test is structured to mirror the responsibilities of a high-level financial officer or consultant, asking candidates to guide management through intricate financial strategy challenges within a company. For those advancing in their ACCA qualifications journey, the AFM course stands as one of the four elective courses at the Strategic Professional level, with students selecting two out of these four options.
The AFM qualification prepares you for senior finance roles such as Financial Controller, Treasury Manager, Corporate Finance Manager, or Chief Financial Officer. These roles command salaries of £60,000-£150,000+ depending on experience and organisation size.
Learning outcomes
What you'll be able to do.
01
Develop and evaluate financial strategy for multinational organisations
02
Apply advanced investment appraisal techniques including real options
03
Advise on acquisitions, mergers, and corporate restructuring
04
Manage treasury operations and advanced risk management
05
Evaluate complex financing decisions and capital structure
06
Apply ethical and governance frameworks to financial decisions
AFM Exam Syllabus
The AFM syllabus covers the key topics you'll be examined on.
Role of the Senior Financial Adviser in the Multinational Organisation
5%
Role of the Senior Financial Adviser in the Multinational Organisation
5%- The role and responsibilities of senior financial executives
- Financial strategy formulation
- Ethical and governance issues in financial management
- Agency relationships and corporate governance
- Environmental, social and governance (ESG) factors
Advanced Investment Appraisal
20%
Advanced Investment Appraisal
20%- Discounted cash flow techniques and project NPV
- Application of option pricing theory in investment decisions
- Real options: to delay, expand, redeploy and withdraw
- Impact of financing on investment decisions (APV)
- International investment and financing decisions
- Risk adjusted discount rates and certainty equivalents
Acquisitions and Mergers
20%
Acquisitions and Mergers
20%- Regulatory framework and processes
- Valuation for acquisitions and mergers
- Financing acquisitions and mergers
- High level consequences of acquisitions and mergers
- Synergy and post-acquisition integration
- Due diligence and deal structuring
Corporate Reconstruction and Reorganisation
15%
Corporate Reconstruction and Reorganisation
15%- Financial reconstruction
- Business reorganisation
- Going concern and insolvency risks
- Exit strategies and divestments
- Demergers and spin-offs
Treasury and Advanced Risk Management Techniques
25%
Treasury and Advanced Risk Management Techniques
25%- Role of the treasury function in multinationals
- Money market and foreign exchange management
- Interest rate risk and currency risk management
- Use of derivatives: forwards, futures, options, swaps
- Advanced hedging strategies
- Value at Risk (VaR) and other risk measures
Emerging Issues in Finance and Financial Management
15%
Emerging Issues in Finance and Financial Management
15%- Developments in world financial markets
- Emerging issues in financial reporting and regulation
- Environmental and social issues in finance
- Impact of fintech and digital currencies
- Behavioural finance concepts
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What's included with your subscription.
Everything you get when you subscribe — across every ACCA paper, not just Advanced Financial Management.
Guided study plans
Week-by-week plans aligned to your sitting date — so you always know what to study next.
Video lectures
Full syllabus coverage from expert tutors, broken into focused 10-15 minute lessons.
CBE practice questions & mocks
Realistic computer-based exam questions and full mocks, marked with examiner-style feedback.
1-2-1 sessions
Book one-to-one time with a tutor for tricky topics, results reviews, or exam strategy.
Revision Bootcamp
Pre-sitting intensives to sharpen question technique and pin down high-mark topics.
Weekly student-support webinars
Drop-in calls where tutors walk through tough topics and answer questions live.
ACCA AFM Exam Structure
Everything you need to know about the AFM exam format, timing, and what to expect on exam day.
Duration
3h 15m
Format
Computer-Based Exam (CBE)
Structure
Section A: one compulsory case-study question worth 50 marks (40 technical marks + 10 professional skills marks). Section B: two compulsory questions worth 25 marks each (20 technical + 5 professional skills marks per question). All questions are compulsory. Total 100 marks.
Sittings
March, June, September, December
Pass mark
50%
Your Guide To Pass ACCA AFM
Expert tips from our tutors to help you prepare effectively and pass your AFM exam on the first attempt.
Structure Your Answers
Presentation is critical in AFM. Use clear headings, bullet points, and logical flow to make your answers easy to follow and mark.
Time Management
With 3 hours 15 minutes for the exam, allocate time per question based on marks. Practice completing questions within time limits.
Practice with CBE Tools
The AFM exam is computer-based. Familiarize yourself with the spreadsheet and word processing tools available during the exam.
Apply to Scenarios
Always relate your discussion and evaluation to the specific scenario in the question. Context is very important for scoring well.
Study the Full Syllabus
Cover all syllabus areas and supplement your studies with wider reading. Past exam analysis shows questions can come from any area.
Study with Learnsignal
Study with ACCA Approved Learning Partners like Learnsignal for structured content, expert support, and exam-focused preparation.
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See ACCA pricing →Frequently Asked Questions About AFM
Everything you need to know about the Advanced Financial Management exam and how to prepare for it.
What is ACCA Advanced Financial Management (AFM)?+
Advanced Financial Management (AFM) is one of the four optional papers at the ACCA Strategic Professional level. It builds upon the Financial Management (FM) paper and focuses on advanced treasury and risk management techniques, business valuations, and advanced investment appraisal. The exam tests your ability to advise senior management on complex financial decisions.
What are the prerequisites for taking AFM?+
To sit the AFM exam, you must have completed all papers at the Applied Knowledge and Applied Skills levels, including FM (Financial Management). FM provides the foundational concepts that AFM builds upon, so a solid understanding of FM topics is essential for success.
How long is the AFM exam and what format does it take?+
The AFM exam is 3 hours and 15 minutes long. It is a computer-based exam (CBE) consisting entirely of constructed response questions. The exam typically includes two sections: Section A has one compulsory question worth 50 marks, and Section B has two questions from a choice of three, each worth 25 marks.
What is the pass rate for AFM?+
The AFM pass rate typically ranges between 35-45%, making it one of the more challenging ACCA papers. This reflects the advanced nature of the content and the need for strong analytical and application skills. With proper preparation through structured study and practice, you can significantly improve your chances of passing.
How should I prepare for the AFM exam?+
Effective AFM preparation includes: studying the complete syllabus, practicing past exam questions under timed conditions, using the CBE practice platform, understanding formulas and their applications, relating theory to practical scenarios, and getting expert tutor support. Learnsignal provides all these resources plus revision bootcamps and crash courses.
What topics are covered in the AFM syllabus?+
The AFM syllabus covers: Role of the senior financial adviser (5%), Advanced investment appraisal (20%), Acquisitions and mergers (20%), Corporate reconstruction and reorganisation (15%), Treasury and advanced risk management techniques (25%), and Emerging issues in finance and financial management (15%).
Can I use a calculator in the AFM exam?+
Yes, the CBE platform provides an on-screen calculator, and you can also use your own ACCA-approved calculator. You will also have access to a spreadsheet tool for complex calculations, which is particularly useful for NPV calculations and sensitivity analysis.
How many times per year can I sit the AFM exam?+
AFM can be sat four times per year during the March, June, September, and December exam sessions. This gives you flexibility in planning your studies and allows you to retake the exam if needed without waiting too long.
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