Trang 1
ACCA APPROVED CONTENT PROVIDER ACCA Approved Study Text Free access to our Exam Paper P4 Success site Advanced Financial Management Look inside Study Text for exams up to June 2015ThiNganHang.com ThiNganHang.com
Nội dung tài liệu
Trang 2
S T U D Y PAPER P4 T E ADVANCED FINANCIAL X MANAGEMENT T BPP Learning Media is an ACCA Approved Learning Partner – content. This means we work closely with ACCA to ensure this Study Text contains the information you need to pass your exam. In this Study Text, which has been reviewed by the ACCA examination team, we: Highlight the most important elements in the syllabus and the key skills you need Signpost how each chapter links to the syllabus and the study guide Provide lots of exam focus points demonstrating what is expected of you in the exam Emphasise key points in regular fast forward summaries ThiNganHang.comTest your knowledge in quick quizzesExamine your understanding in our practice question bankReference all the important topics in our full index BPP's Practice & Revision Kit, i-Pass and Interactive Passcard products also support this paper. FOR EXAMS IN DECEMBER 2014 AND JUNE 2015 ThiNganHang.com
Trang 3
First edition 2007 All rights reserved. No part of this publication may be Seventh edition May 2014 reproduced, stored in a retrieval system or transmitted, in ISBN 9781 4727 1088 8 any form or by any means, electronic, mechanical, (Previous ISBN 9781 4453 9656 9) photocopying, recording or otherwise, without the prior written permission of BPP Learning Media Ltd. e-ISBN 9781 4453 6743 9 We are grateful to the Association of Chartered Certified British Library Cataloguing-in-Publication Data Accountants for permission to reproduce past examination questions. The suggested solutions in the A catalogue record for this book practice answer bank have been prepared by BPP is available from the British Library Learning Media Ltd, unless otherwise stated. Published by BPP Learning Media Ltd BPP House, Aldine Place London W12 8AA www.bpp.com/learningmedia Printed in the United Kingdom by Polestar Wheatons Hennock Road Marsh Barton Exeter EX2 8RP Your learning materials, published by BPP Learning Media Ltd, are printed on paper obtained from traceable sustainable sources. ThiNganHang.com © BPP Learning Media Ltd 2014 ii ThiNganHang.com
Trang 4
Contents Page Introduction Helping you to pass v Studying P4 vii The exam paper and exam formulae xi Part A Role and responsibility towards stakeholders 1 The role and responsibility of senior financial executive/advisor 3 2 Financial strategy formulation 29 3a Conflicting stakeholder interests 69 3b Ethical issues in financial management 95 3c Impact of environmental issues on corporate objectives and governance 103 Part B Economic environment for multinationals 4 Trading and planning in a multinational environment 121 Part C Advanced investment appraisal 5 Discounted cash flow techniques 159 6 Application of option pricing theory in investment decisions 187 7a Impact of financing on investment decisions and adjusted present values 205 7b Valuation and the use of free cash flows 259 8 International investment and financing decisions 277 Part D Acquisitions and mergers 9 Acquisitions and mergers versus other growth strategies 305 10 Valuation of acquisitions and mergers 319 11 Regulatory framework and processes 353 12 Financing mergers and acquisitions 365 Part E Corporate reconstruction and reorganisation 13 Financial reconstruction 379 14 Business reorganisation 393 Part F Treasury and advanced risk management techniques 15 The role of the treasury function in multinationals 409 16 The use of financial derivatives to hedge against foreign exchange risk 427 17 The use of financial derivatives to hedge against interest rate risk 477 18 Dividend policy in multinationals and transfer pricing 513 ThiNganHang.comPart G Emerging issues 19 Recent developments in world financial markets and international trade 529 Appendix:Mathematical tables 553 Practice question bank 559 Practice answer bank 587 Index 655 Review form Contents iii ThiNganHang.com
Trang 5
A note about copyright Dear Customer What does the little © mean and why does it matter? Your market-leading BPP books, course materials and elearning materials do not write and update themselves. People write them: on their own behalf or as employees of an organisation that invests in this activity. Copyright law protects their livelihoods. It does so by creating rights over the use of the content. Breach of copyright is a form of theft – as well being a criminal offence in some jurisdictions, it is potentially a serious breach of professional ethics. With current technology, things might seem a bit hazy but, basically, without the express permission of BPP Learning Media: Photocopying our materials is a breach of copyright Scanning, ripcasting or conversion of our digital materials into different file formats, uploading them to Facebook or emailing them to your friends is a breach of copyright You can, of course, sell your books, in the form in which you have bought them – once you have finished with them. (Is this fair to your fellow students? We update for a reason.) Please note the e-products are sold on a single user licence basis: we do not supply ‘unlock’ codes to people who have bought them second hand. And what about outside the UK? BPP Learning Media strives to make our materials available at prices students can afford by local printing arrangements, pricing policies and partnerships which are clearly listed on our website. A tiny minority ignore this and indulge in criminal activity by illegally photocopying our material or supporting organisations that do. If they act illegally and unethically in one area, can you really trust them? ThiNganHang.com iv Introduction ThiNganHang.com
Trang 6
Helping you to pass BPP Learning Media – Approved Learning Partner - content As ACCA’s Approved Learning Partner – content, BPP Learning Media gives you the opportunity to use study materials reviewed by the ACCA examination team. By incorporating the examination team’s comments and suggestions regarding the depth and breadth of syllabus coverage, the BPP Learning Media Study Text provides excellent, ACCA-approved support for your studies. The PER alert Before you can qualify as an ACCA member, you not only have to pass all your exams but also fulfil a three year practical experience requirement (PER). To help you to recognise areas of the syllabus that you might be able to apply in the workplace to achieve different performance objectives, we have introduced the ‘PER alert’ feature. You will find this feature throughout the Study Text to remind you that what you are learning to pass your ACCA exams is equally useful to the fulfilment of the PER requirement. Your achievement of the PER should now be recorded in your on-line My Experience record. Tackling studying Studying can be a daunting prospect, particularly when you have lots of other commitments. The different features of the text, the purposes of which are explained fully on the Chapter features page, will help you whilst studying and improve your chances of exam success. Developing exam awareness Our Texts are completely focused on helping you pass your exam. Our advice on Studying P4 outlines the content of the paper, the necessary skills you are expected to be able to demonstrate and any brought forward knowledge you are expected to have. Exam focus points are included within the chapters to highlight when and how specific topics were examined, or how they might be examined in the future. Using the Syllabus and Study Guide You can find the syllabus and Study Guide on pages xiii – xxii of this Study Text Testing what you can do Testing yourself helps you develop the skills you need to pass the exam and also confirms that you can recall what you have learnt. ThiNganHang.comWe includeQuick QuizzesQuestionsat the end of each chapter to test your knowledge of the chapter content.– lots of them – both within chapters and in the Practice Question Bank, as well as Introduction v ThiNganHang.com
Trang 7
Chapter features Each chapter contains a number of helpful features to guide you through each topic. Topic list Topic list Syllabusreference What you will be studying in this chapter and the relevant section numbers, together with ACCA syllabus references. Introduction Puts the chapter content in the context of the syllabus as a whole. Study Guide Links the chapter content with ACCA guidance. Exam Guide Highlights how examinable the chapter content is likely to be and the ways in which it could be examined. Knowledge brought forward from earlier studies What you are assumed to know from previous studies/exams. Summarises the content of main chapter headings, FAST FORWARD allowing you to preview and review each section easily. Examples Demonstrate how to apply key knowledge and techniques. Definitions of important concepts that can often earn you Key terms easy marks in exams. When and how specific topics were examined, or how Exam focus points they may be examined in the future. Formulae that are not given in the exam but which have to Formula to learn be learnt. Gives you a useful indication of syllabus areas that closely relate to performance objectives in your Practical Experience Requirement (PER). Question Gives you essential practice of techniques covered in the chapter. Case Study Real world examples of theories and techniques. ThiNganHang.comChapter Roundup A full list of the Fast Forwards included in the chapterproviding an easy source of review. , Quick Quiz A quick test of your knowledge of the main topics in the chapter. Found at the back of the Study Text with more Practice Question Bank comprehensive chapter questions. Cross referenced for easy navigation. vi Introduction ThiNganHang.com
Trang 8
Studying P4 As the name suggests, this paper examines advanced financial management topics and is particularly suited to those who are thinking about a career in treasury or are likely to be involved in strategic financial management decisions. 1 What P4 is about The aim of the syllabus is to develop students’ ability to apply relevant knowledge and skills, and exercise the professional judgement expected of a senior financial advisor, in taking or recommending financial management decisions that are likely to have an impact on the entire organisation. This is an advanced level optional paper which builds on the topics covered in Paper F9 Financial Management. As an advanced paper it tests much more than just your ability to perform calculations. You must be able to evaluate data, assess the potential financial and strategic consequences of taking investment decisions and advise on alternative courses of action, amongst other things, in both a domestic and international context. The syllabus is divided into seven main sections: (a) The role and responsibility towards stakeholders More than ever, company management’s responsibility towards all stakeholders is under scrutiny. They must be aware of different stakeholder groups’ conflicting needs and be able to develop suitable financial strategies that fulfil each group’s interests as much as possible. The impact of environmental factors should also be uppermost in their minds given the increasing importance placed on such factors in the modern business world. Ethical issues cannot be ignored – ethics are expected to be a consistent theme in the examination, with the examiner expecting students to be able to take a practical approach to identifying such issues in given scenarios. (b) Economic environment for multinationals Multinational companies have their own unique set of challenges, including having operations in international locations. You will be expected to have detailed knowledge and understanding of how to manage international finances and strategic business and financial planning for companies with international operations. (c) Advanced investment appraisal This section revisits investment and financing decisions with the emphasis moving from straightforward technical knowledge towards the strategic issues associated with making investment decisions, both domestic and international. (d) Acquisitions and mergers ThiNganHang.commost appropriate method ofacquisition should beYou will be expected to distinguish betweenfinancedvaluation. You will be required to act in anand makedifferent typesstrategic decisionsof acquisitions,advisoryregarding how the merger oras well as technicalchoose and apply the capacity. (e) Corporate reconstruction and re-organisation This section looks at how to put together a restructuring package and ways in which an organisation might be re-organised (for example, management buyouts and sell-offs). As above, you will be expected to act in both a technical and advisory capacity in questions on this section. Introduction vii ThiNganHang.com
Trang 9
(f) Treasury and advanced risk management techniques This section covers distinct areas of risk and how to measure and manage them. Interest rate and currency risks and the derivatives used to hedge against them are considered in detail. You will not only be required to know how the derivatives work but also to advise on the best methods of hedging in particular scenarios. This section also covers other risks such as credit risk and additional treasury functions such as dividend policy. (g) Emerging issues in finance and financial management Financial management is a continually developing area and finance executives have to keep up to date with the new tools and techniques that are emerging, as well as developments in the international financial markets. 2 Skills you have to demonstrate Be able to integrate knowledge and understanding from across the syllabus Think in a strategic way – you are assumed to be a senior financial adviser for the purposes of this paper Be able to criticise financial techniques as well as apply them, and be able to make reasoned judgements and give objective advice based on calculated results Be able to think internationally as well as from the viewpoint of the domestic market If you read the main capabilities listed by ACCA that students are expected to have on completion of P4, you will find continued reference to the verbs ‘evaluate’, ‘assess’, ‘advise’ and ‘explain’ – make sure you can do all of these in relation to the different aspects of the syllabus 3 How to pass The examiner’s reports for both exams in 2013 highlighted factors on which students should focus. Study the entire syllabus. Students who are well-prepared are much more likely to be successful than students who study at the last minute and rely on question spotting and hints. Apply knowledge and understanding to the scenario. Weak answers tend to be more general. Provide a balanced answer to all parts of the question, whether discussion or calculation parts. Scripts that answer all parts of all questions are more likely to pass than scripts that leave question parts or whole questions unanswered. Students should make sure that they choose optional questions where they can answer all parts. Good time management is vitally important. Students should avoid spending too long on individual questions. Answer the question set, all of the question set and no more. Question requirements and ThiNganHang.com narrative should be read carefully. Irrelevant answers will not score well.Legible, well-presented and well-structured answers often score wellanswers achieving high marks is normally good, with clear labelling and structure and workings.. The presentation of Adopting these practices will also help students obtain the professional marks. Remember what the examiners’ reports say and emulate the approaches, techniques and good practice that they suggest. Do a quick check. Do the numerical answers make sense? Apply knowledge and understand viii Introduction ThiNganHang.com
Trang 10
4 Brought forward knowledge As mentioned previously, this paper builds on knowledge brought forward from Paper F9 Financial Management. If you have not studied F9, you should be aware that the following topics are assumed knowledge and should be considered examinable. Management of working capital Business finance (including sources of finance and dividend policy) The capital structure decision Investment decisions Interest and discounting Investment appraisal Capital rationing Cost of capital (including CAPM and WACC) Business valuations Market efficiency Foreign currency and interest rate risk management ThiNganHang.com Introduction ix ThiNganHang.com
Trang 11
Analysis of past papers The table below provides details of when each element of the syllabus has been examined and the question number and section in which each element appeared. Further details can be found in the Exam Focus Points in the relevant chapters. Covered in Text chapter D13 J 13 D 12 J 12 D 11 J 11 D 10 J 10 D 09 J 09 D 08 J 08 D 07 ROLE AND RESPONSIBILITY TOWARDS STAKEHOLDERS 1, 2 Role of senior financial executive/financial C O C O C, O C C O strategy formulation 3a Conflicting stakeholder interests 3b, 3c Ethical/environmental issues C O O O O O O ECONOMIC ENVIRONMENT FOR MULTINATIONALS 4 Trading and planning in a multinational C O O O environment ADVANCED INVESTMENT APPRAISAL 5 Discounted cash flow techniques C O O C C C C, O C, O C O C, O 6 Application of option pricing theory to C C O O C C, O O O investment decisions 7a, 7b Impact of financing, adjusted present values / O C C C, O C, O O C C O O 0 Valuation and use of free cash flows 8 International investment and financing O C decisions ACQUISITIONS AND MERGERS 9, 11, 12 Strategic/financial/regulatory issues O O C C O C 10 Valuation techniques O C, O O C C C C C CORPORATE RECONSTRUCTION & REORGANISATION 13 Financial reconstruction C C 14 Business reorganisation O C O C O C TREASURY & ADVANCED RISK MANAGEMENT TECHNIQUES 15 Role of the treasury function O 16 Hedging foreign currency risk O C C O O O 17 Hedging interest rate risk O O O C O O ThiNganHang.com18 Dividend policy & transfer pricing in O O multinationals EMERGING ISSUES 19 Recent developments and trends in world O O O O O O financial markets and international trade x Introduction ThiNganHang.com
Trang 12
The exam paper and exam formulae Format of the paper Section A contains one compulsory question worth 50 marks. This question covers topics from across the syllabus but tends to be based on one major area – for example a cross-border merger question (major topic) might bring in ethical issues (smaller topic). Section B contains a choice of two from three questions worth 25 marks each. Professional marks are available. The examination team has emphasised that in order to gain all the marks available, students must write in the specified format (such as a report or memo). Reports must have terms of reference, conclusion, appendices and appropriate headings. Make sure you are familiar with how different types of documents are constructed to improve your chances of gaining maximum professional marks. Time allowed - 3 hours with 15 minutes’ reading time. Exam formulae Set out below are the formulae you will be given in the exam. If you are not sure what the symbols mean, or how the formulae are used, you should refer to the appropriate chapter in this Study Text. Chapter in Study Text Modigliani and Miller Proposition 2 (with tax) V k ki (1 T)(ki k ) d 7a e e e d V e The capital asset pricing model E(r) = R + (E(r ) – R) Assumed knowledge i f i m f The asset beta formula V V (1 T) e d Assumed knowledge a V V (1 T) e V V (1 T) d e d e d The growth model D (1 g) P 0 12 0 (r g) e Gordon's growth approximation ThiNganHang.comg = br 5 e The weighted average cost of capital V V WACC = e k + d k (1- T) 7a V + V e V + V d e d e d The Fisher formula (1 + i) = (1 + r) (1 + h) 5 Purchasing power parity and interest rate parity 1+ h S = S × c 8 1 0 1+ h b Introduction xi ThiNganHang.com
Trang 13
Chapter in Study Text 1+ i F = S × c 8 0 0 1+ i b Modified internal rate of return 1 PV n MIRR = R 1+ r - 1 5 PV e I The Black-Scholes option pricing model c = P N(d ) – P N(d )e–rt 6 a 1 e 2 In P /P + (r + 0.5s )t2 Where d = a e 6 1 s t d = d – s t 6 2 1 The put call parity relationship p = c – P + P e–rt 16 a e ThiNganHang.com xii Introduction ThiNganHang.com
Trang 14
Syllabus and Study Guide The P4 syllabus and study guide can be found below. ThiNganHang.com Introduction xiii ThiNganHang.com
Hiển thị 14 trang đầu. Tải tài liệu để xem đầy đủ.
Bình luận (0)
Chưa có bình luận nào. Hãy là người đầu tiên!