CIMA 2010 Syllabus

The definitive paper by paper guide

A detailed guide to the new CIMA 2010 syllabus for students taking future exams, including paper by paper information and knowledge gaps between the existing and new syllabus.

Its time to get ready to go!

We hope over the past twelve months that we have given you enough information to get ready and get set for the new CIMA 2010 syllabus. Its now time for you to get ready to go! Following our recent survey to students, its clear you wanted to know whats new, whats been removed and what the knowledge gaps are for each paper. In this guide, youll find exactly that, as well as lots more helpful information about each paper. It goes without saying that the knowledge gaps will all be covered in our new redesigned courses for 2010. In addition, from this guide youll also get: 4 A summary of each paper 4 A full breakdown of the syllabus 4 The weighting for each syllabus area to your final exam mark 4 Information about the exam, including format and timings Dont forget, were sending out updates to students about the CIMA 2010 syllabus change so make sure youre registered by visiting www.bpp.com/cima/2010 Good luck with your studies in 2010 and remember, were here to give you maximum support through the syllabus change.

Syllabus change - quick facts

Its the same number of papers Its the same number of exam sittings No changes at CIMA Certificate level Paper names are changing similar content but with some changes New Operational and Management level existing Managerial level split in two 4 Successful passing Operational level = Diploma in Management Accounting 4 Clear link between work based practical experience and the Test of Professional Competence in Management Accounting (formerly TOPCIMA) exam 4 4 4 4 4

Your journey through the new CIMA Qualication

Award - Member of the Chartered Institute of Management Accountants
Professional Competence Level

T4 - Test of Professional Competence in Management Accounting Part A

Initial Professional Development Work Based Practical Experience

Part B
Case Study Examination based on pre-seen and unseen material

Strategic Level

Paper E3
Enterprise Strategy

Paper P3
Performance Strategy

Paper F3
Financial Strategy

Award - CIMA Advanced Diploma in Management Accounting

Management Level

Paper E2
Enterprise Management

Paper P2
Performance Management

Paper F2
Financial Management

Award - CIMA Diploma in Management Accounting

Operational Level

Paper E1
Enterprise Operations

Paper P1
Performance Operations

Paper F1
Financial Operations

Enterprise pillar

Performance pillar

Finance pillar

Pre-requisite entry requirements (eg CIMA Certificate in Business Accounting, degrees in business or accounting or AAT Technician/Diploma level). Award - CIMA Certificate in Business Accounting
Paper C01 Fundamentals of Management Accounting Paper C02 Fundamentals of Financial Accounting Paper C03 Fundamentals of Business Mathematics Paper C04 Fundamentals of Business Economics Paper C05 Fundamentals of Ethics, Corporate Governance and Business Law

E1 Enterprise Operations
This paper addresses several business functions and will introduce you to the economic, social and political context of international business. The business functions you will address are information systems, operations management, marketing and managing human capital. You will look at major developments in each function as well as the tools and techniques important to them.

E1 (previously P4) - CIMA 2010 syllabus change

Whats new in Enterprise Operations?
A brand new Syllabus Area called Global Business Environment. This covers the international aspects of todays dynamic corporate world, looking at topics like multinational markets and economies, offshore outsourcing, the changing face of regulation and impacts on corporate governance.

Whats gone from the old P4 syllabus?

Change Management has moved in its entirety to the new E3 paper. The scope of Managing Human Capital has also been reduced (from 30% to 20% of the syllabus).

Paper E1
syllabus summary
4

Our study options towards E1 are designed to focus on the most important aspects of the syllabus including: 4 Applying tools and techniques of operations management 4 Explaining developments in marketing 4 Applying tools and techniques used in support of the organisations marketing 4 Explaining the relationship of Human Resources (HR) to the organisations operations 4 Discussing the activities associated with the management of human capital

Explaining the social, political and economic context of business

4 Analysing the relationship between the internal governance of the firm and external sources of governance and regulation 4 Discussing the wider business context within which information systems operate 4 Analysing how information systems can be implemented in support of the organisations strategy 4 Explaining the relationship of operations management to other aspects of the organisations operations

Syllabus structure
Topic A B C D E The Global Business Environment Information Systems Operations Management Marketing Managing Human Capital Weighting 20% 20% 20% 20% 20%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Three sections Section A (20 marks) variety of compulsory objective questions, each worth between two and four marks. You may be given a scenario that relates to a group of questions Section B (30 marks) six compulsory short answer questions worth five marks each. You may be given a short scenario which applies to some or all of the questions Section C (50 marks) one or two compulsory questions. You may be given a scenario relating to the questions

P1 Performance Operations
This paper will introduce you to the tools and techniques that generate information needed to evaluate and control present and projected performance.You will forecast key variables and evaluate potential uncertainties about future events. Budget construction then uses the budget in conjunction with costing systems in order to evaluate actual performance. Similarly, project appraisal requires future financial projections to evaluate expected performance and actual outcomes.You will explore both concepts with the emphasis on the critical importance of optimising cash flow. The final section of the paper continues this theme with a focus on working capital management.

P1 (name unchanged) - CIMA 2010 syllabus change

This paper has probably seen the most significant changes in the transition to the new syllabus.

Whats new in Performance Operations?

4 Project appraisal (NPV/IRR) and dealing with uncertainty constitute 40% of the new P1 syllabus, topics previously examined in their entirety in P2. 4 The management of short term finance has also come into P1 from the old P7 paper, now making up 20% of the new P1. 4 The majority of the fundamental cost accounting techniques remain in P1, although environmental accounting is a brand new sub-topic in the new syllabus.

Whats gone to make space for all of this?

4 Process costing is no longer in the P1 syllabus at all (although still covered at Certificate Level in C01). 4 The majority of the discussion around different budgeting techniques has moved out to P2, as has performance measurement techniques like non-financial performance indicators. 4 The whole syllabus area on Control and Performance Measurement of Responsibility Centres has also moved to P2, so new syllabus P1 students will not have to deal with transfer pricing just yet.

Paper P1
syllabus summary

Our study options towards P1 are designed to focus on the most important aspects of the syllabus including: 4 4 4 4 Evaluate project proposals Analyse information to assess the impact on decisions of variables with uncertain values Analyse the working capital position and identify areas for improvements Identify short-term funding and investment opportunities

4 Discussing costing methods and their results 4 explain the role of MRP and ERP systems 4 Apply principles of environment costing. 4 Explain the purposes of forecasts, plans and budgets 4 Prepare forecasts of financial results 4 Prepare budgets based on forecasts 4 Prepare information to support project appraisal

Syllabus structure
Topic A B C D E Cost Accounting Systems Forecasting and Budgeting Techniques Project Appraisal Dealing with Uncertainty in Analysis Managing Short Term Finance Weighting 30% 10% 25% 15% 20%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Three sections Section A (20 marks) variety of compulsory objective questions, each worth between two and four marks. You may be given a scenario that relates to a group of questions Section B (30 marks) six compulsory short answer questions worth five marks each. You may be given a short scenario which applies to some or all of the questions Section C (50 marks) one or two compulsory questions. You may be given a scenario relating to the questions

F1 Financial Operations
In Paper F1, you will learn how to prepare full financial statements for a single company and also principal consolidated financial statements for a simple group. This will cover a wide range of international standards. In order to ensure that financial statements meet the users needs, you will also learn about the regulatory and ethical context of financial reporting. The Principles of taxation are covered to support accounting for taxes in financial statements and as a basis for examining the role of tax in financial analysis and decisionmaking in subsequent papers (Paper F2 Financial Management and Paper F3 Financial Strategy).

F1 (previously P7) - CIMA 2010 syllabus change

4 Under the new 2010 syllabus F1 Financial Operations replaces the old P7 Financial Accounting and Tax Principles. 4 The syllabus changes have been generally good news for this paper. 4 F1 has lost the Managing Short Term Finance area of the syllabus. The topics covered within this area were: working capital and the operating cycle, cash flow forecasts, cash management, borrowing and investing, receivables and payables, and managing inventory. These have all moved to paper P1, Performance Operations where they are a much more logical fit. 4 F1 has gained a couple of new topics professional ethics and basic group accounts. 4 Professional ethics is a brand new topic which is often covered alongside audit, one of the topics which remain unchanged in this paper. 4 With regards group accounts - under the old syllabus students were introduced to this in paper P8 Financial Analysis, the paper that was the natural follow on from P7. 4 Now you will get a gentle introduction to group accounts in F1 and then move on to develop this knowledge by covering the more complex aspects of group accounts in F2 Financial Management. 4 The tax element of the paper remains unchanged.

Paper F1
syllabus summary

Our study options towards F1 are designed to focus on the most important aspects of the syllabus including: 4 4 Apply the provisions of the CIMA Code of Ethics for Professional Accountants Prepare the full financial statements of a single company and the consolidated statements of financial position and comprehensive income for a group (in relatively straightforward circumstances) Apply international standards dealing with a range of matters and items

4 Explain the types of tax that can apply to incorporated business, their principles and potential administrative requirements 4 Explain fundamental concepts in international taxation of incorporated business 4 Prepare corporate income tax calculations 4 Apply the accounting rules for current and deferred taxation 4 Explain the need for and methods of regulating accounting and financial reporting

Syllabus structure
Topic A B C Principles of Business Taxation Regulation and Ethics of Financial Reporting Financial Accounting and Reporting Weighting 25% 15% 60%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Three sections Section A (20 marks) variety of compulsory objective questions, each worth between two and four marks. You may be given a scenario that relates to a group of questions Section B (30 marks) six compulsory short answer questions worth five marks each. You may be given a short scenario which applies to some or all of the questions Section C (50 marks) one or two compulsory questions. You may be given a scenario relating to the questions

E2 Enterprise Management
Paper E2 will move from the emphasis on functional knowledge in Paper E1 towards a holistic and integrated view of management across the organisation.You will be building on important concepts in strategic management and identifying the key types of competitive environment through tools and techniques. Finally, you will look at project management and team management with the legal aspects of managing individuals and the softer elements of negotiation and leadership skills.

E2 (previously P5) - CIMA 2010 syllabus change

The three major areas covered in this paper have not changed in the new syllabus they remain Management of Relationships, Strategic Management and Project Management. At the detailed level, the major change is the addition of material on the competitive environment. In line with CIMAs approach of pushing more knowledge down from strategic level papers, this has moved from the old P6. It includes Porters Diamond and competitor analysis. Management of the finance function and management of professional relationships have moved in from P9. To balance this, corporate governance and corporate social responsibility have moved to E1. There is also a reduced emphasis on management styles and techniques, with topics such as time management, information gathering and managing conflict being removed from the syllabus.

Paper E2
syllabus summary

Our study options towards E2 are designed to focus on the most important aspects of the syllabus including: 4 4 4 Evaluate the relationship of the project manager to the external environment Discuss concepts associated with the effective operation of an organisation Discuss the activities associated with managing people and their associated techniques

4 Discuss different competitive environments and key external characteristics of these environments 4 Discuss developments in strategic management 4 Discuss tools and techniques of project management

Syllabus structure
Topic A B C Strategic Management and Assessing the Competitive Environment Project Management Management of Relationships Weighting 30% 40% 30%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Two sections Section A (50 marks) Five compulsory medium answer questions worth ten marks each. You may be given a short scenario which applies to some or all of the questions Section B (50 marks) One or two compulsory questions. You may be given a short scenario relating to the questions

P2 Performance Management
In Paper P2, you will focus on the application of information in managing processes of decision-making, control and performance optimisation. The first two sections introduce you respectively to the key contributors to operational performance revenue (how to make a decision of what to produce at what price) and cost (how to manage them to maximise profitability). In the final two sections, you will then look at the control in monitoring, improving performance and the principles and practices in the use of responsibility centres and budgeting.

P2 (name unchanged) - CIMA 2010 syllabus change

4 60% of the current P2 syllabus topics remain in P2 under the new syllabus. 4 Investment appraisal and risk and uncertainty are no longer in P2 instead featuring in the new P1 syllabus. 4 There are 2 new syllabus areas in P2. These are: Budgeting and Management Control Control and Performance Measurement of Responsibility Centres. 4 Broadly, the topics concerned here are feedback / feedforward control, rolling budgets, flexible budgets, behavioural impacts of budgeting, beyond budgeting, performance measurement using financial and non financial indicators, performance measurement within decentralised businesses and transfer pricing. These were all previously examined within P1.

Paper P2
syllabus summary

Our study options towards P2 are designed to focus on the most important aspects of the syllabus including: 4 4 Discuss the broader managerial issues arising from the use of budgets in control Discuss the use of responsibility centres in devising organisation structure in management control Discuss information suitable for management decision-making in responsibility centres Discuss the broader managerial issues arising from the division of the organisation into responsibility centres.

4 Discuss concepts of cost and revenue relevant to pricing and product decisions 4 Analyse short-term pricing and product decisions 4 Discuss pricing strategies and their consequences 4 Evaluate techniques for analysing and managing costs for competitive advantage 4 Explain the principles that underlie the use of budgets in control 4 Evaluate performance using budgets, recognising alternative approaches and sensitivity to variable factors

4 4

Syllabus structure
Topic A B C D Pricing and Product Decisions Cost Planning and Analysis for Competitive Advantage Budgeting and Management Control Control and Performance Measurement of Responsibility Centres Weighting 30% 30% 20% 20%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Two sections Section A (50 marks) Five compulsory medium answer questions worth ten marks each. You may be given a short scenario which applies to some or all of the questions Section B (50 marks) One or two compulsory questions. You may be given a scenario relating to the questions

F2 Financial Management
Paper F2 extends the scope of Paper F1 where you will move to more advanced topics in financial accounting and developments in external reporting.You will prepare full consolidated financial statements and deal with more complex issues in the principles of accounting standards. The advanced material provided in this paper will allow you to achieve more meaningful analysis and interpretation of accounts.

F2 (previously P8) - CIMA 2010 syllabus change

The syllabus content of Paper F2 is almost identical to that of the old syllabus equivalent, Paper P8.

New topic
IFRS 2 Share-based payment is examinable in the new paper. This topic has not been examinable under the old syllabus.

Technical changes
A number of accounting standards have recently been revised and these revised versions become examinable from the first sitting of the new syllabus. The standards affected are: 4 IAS 1 Presentation of Financial Statements 4 IFRS 3 Business Combinations, and 4 IAS 27 Consolidated and Separate Financial Statements The changes introduced in IAS 1 have a wide-ranging effect, as they change some of the layouts and terminology used in preparing financial statements. If you have already studied Paper P8 under the old syllabus you will notice a number of changes to aspects of group accounting as a result of the revisions to IFRS 3 and IAS 27.

Paper F2
syllabus summary

Our study options towards F2 are designed to focus on the most important aspects of the syllabus including: 4 4 4 Produce a ratio analysis from financial statements and supporting information Evaluate performance and position Discuss contemporary developments in financial and non-financial reporting

4 Prepare the full consolidated statements of a single company and the consolidated statements of financial positions and comprehensive income for a group (in relatively complex circumstances) 4 Explain the principles of accounting for capital schemes and foreign exchange rate changes. 4 Discuss accounting principles and their relevance to accounting issues of contemporary interest

Syllabus structure
Topic A B C D Group Financial Statements Issues in Recognition and Measurement Analysis and Interpretation of Financial Accounts Developments in External Reporting Weighting 35% 20% 35% 10%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Two sections Section A (50 marks) Five compulsory medium answer questions worth ten marks each. You may be given a short scenario which applies to some or all of the questions Section B (50 marks) One or two compulsory questions. You may be given a scenario relating to the questions

E3 Enterprise Strategy
Paper E3 continues with the integration of skills across functions and focuses on developing the knowledge and skills used in designing and implementing strategy.You will explore how strategy is developed in a context and how it can be affected by the organisations external environment and stakeholders. Implementing strategy involves tools and techniques associated with change management.You will cover tools and techniques which will assist in the evaluation of the performance implications of a given strategy.

E3 (previously P6) - CIMA 2010 syllabus change

There have been some significant changes to the old strategic level Business Strategy (P6) paper in the CIMA syllabus. A summary of the main ins and outs for the new Enterprise Strategy (E3) paper are outlined below: In: Change Management this was formerly found in the old managerial level paper P4 OMIS. The syllabus content looks similar covering well known theories such as Lewins forcefield analysis and unfreeze, move, refreeze model. However questions in E3 will focus on your ability to identify the triggers for change and advising on how to implement strategic change. Out: Making room for change management is assessing the Competitive Environment, this being pushed down to the replacement paper for Integrated Management called Enterprise Management. As such an awareness of environmental analysis models such as Porters Five Forces, Porters Diamond, and PEST will be assumed in E3

Paper E3
syllabus summary

Our study options towards E3 are designed to focus on the most important aspects of the syllabus including: 4 4 4 Evaluate the process of strategy development Evaluate tools and techniques used in strategy formulation Evaluate the tools and processes of strategy implementation

4 Evaluate the key external factors affecting an organisations strategy 4 Evaluate the impact of information systems on an organisation 4 Advise on important elements in the change process 4 Evaluate tools and methods for successfully implementing a change programme 4 Recommend change management processes in support of strategy implementation

Syllabus structure
Topic A B C D Interacting with the Competitive Environment Change Management Evaluation of Strategic Options Implementation of Strategic Plans Weighting 20% 20% 30% 30%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Three sections Section A (50 marks) Four compulsory answer questions worth fifty marks. You will be given a pre-seen case study and unseen case material. (Note: The pre-seen case study is common to all three of the strategic level papers i.e Paper E3, P3 and F3) Section B (50 marks) Two questions from a choice of three worth twenty five marks. You may be given a short scenario which applies to some or all the questions

P3 Performance Strategy
You will explore two key issues which underpin Paper P3 what financial and non-financial risks face the organisation and how those risks can be managed and controlled? The paper provides you with the management strategies of risk identification and management which involves establishing and monitoring appropriate systems of internal control. With the growing importance of new sources of risk, you will pay particular attention to risks arising from governance, ethical and social/environment issues.

P3 (name unchanged) - CIMA 2010 syllabus change

The overall theme of P3 remains unchanged this paper deals with risks that organisations face and how they can be controlled. The syllabus topics are also unchanged. At the detailed level, most of the syllabus changes are minor and are not expected to change the content examined very much. CIMA have introduced a new learning objective alongside Corporate Governance, which is evaluating ethical issues as a source of risk and control mechanisms for their detection and resolution. Ethical issues have always been a part of P3, but this may indicate that it will have an increased emphasis in the new syllabus. One topic has been removed from the syllabus, which is the role and management of the Treasury function, including how it should be organised. This has been transferred to Paper F3, Financial Strategy.

Paper P3
syllabus summary

Our study options towards P3 are designed to focus on the most important aspects of the syllabus including: 4 4 4 4 4 Evaluate the process and purposes of audit in the context of internal control systems Discuss corporate governance and ethical issues facing an organisation Evaluate financial risks facing an organisation Evaluate alternative risk management tools Evaluate the benefits and risks associated with information-related systems.

4 Evaluate control systems for organisational activities and resources 4 Evaluate types of risk facing an organisation 4 Evaluate risk management strategies and internal controls 4 Evaluate governance and ethical issues facing an organisation 4 Discuss the importance of management review of controls

Syllabus structure
Topic A B C D E Management Control Systems Risk and Internal Control Review and Audit of Control Systems Management of Financial Risk Risk and Control in Information Systems Weighting 10% 25% 15% 35% 15%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Two sections Section A (50 marks) Four compulsory answer questions worth fifty marks. You will be given a pre-seen case study and unseen case material. (Note: The pre-seen case study is common to all three of the strategic level papers i.e Paper E3, P3 and F3) Section B (50 marks) Two questions from a choice of three worth twenty five marks. You may be given a short scenario which applies to some or all the questions

F3 Financial Strategy
Paper F3 will introduce you to the key elements in managing the organisations financial strategy to achieve its objectives within the external constraints such as the general regulatory and investment environment. You will cover the features and implications of a full range of major financing instruments and investment decisions. These decisions will help you to take account of financial analysis in the context of the broader strategic issues.

F3 (previously P9) - CIMA 2010 syllabus change

Whats new? The only new area is short-term hedging strategies which appears in section A of the syllabus, this area was covered in the old syllabus in paper 3 risk and control strategy and is still covered in the new syllabus version of this paper (paper P3 Performance Strategy). Whats gone? Management of the finance function has been moved to paper E2 Enterprise Management - but note that discussion of the Treasury function is still examinable in this paper.

Paper F3
syllabus summary

Our study options towards F3 are designed to focus on the most important aspects of the syllabus including: 4 4 4 4 Discuss the treasury function Evaluate investment choices Evaluate opportunities for merger, acquisition and divestment Evaluate procedures for investment projects

4 Discuss potential strategic financial objectives, and the relationships among and constraints on the elements of financial strategy 4 Evaluate the financial strategies and objectives of an organisation and the extent of their attainment 4 Evaluate the financing requirements of an organisation and strategies for meeting those requirements

Syllabus structure
Topic A B C Formulations of Financial Strategy Financing Decisions Investment Decisions and Project Control Weighting 25% 30% 45%

About the exam 4 4 4 Written exam Three hours (plus 20 minutes of pre-exam reading time) Two sections Section A (50 marks) Four compulsory answer questions worth fifty marks. You will be given a pre-seen case study and unseen case material. (Note: The pre-seen case study is common to all three of the strategic level papers i.e Paper E3, P3 and F3) Section B (50 marks) Two questions from a choice of three worth twenty five marks. You may be given a short scenario which applies to some or all the questions

Test of Professional Competence in Management Accounting

78% of our TOPCIMA students pass their exams*
The Test of Professional Competence in Management Accounting (formerly TOPCIMA) comprises two component parts that you must complete. 4 Part A - Initial professional development and work based practical experience 4 Part B - Case study examination Credits are used to measure success, rather than marks. To pass the Test of Professional Competence in Management Accounting, you must achieve an aggregated minimum of 75 credits comprising a minimum of 50 credits for Part A (maximum 50 credits) and a minimum of 25 credits for Part B (maximum of 50 credits). You should undertake Part A and Part B concurrently, although either can be taken in any order once you have completed Strategic level. The overall result for the Test of Professional Competence in Management Accounting can only be given once you have completed both parts. *Based on 840 students sitting TOPCIMA on PC in September 2009

CIMA 2010 syllabus change

Currently, students who complete The Test of Professional Competence in Management Accounting exams obtain the Passed Finalist title until they complete submission of their practical experience. New changes going forward mean that there will be increased importance placed on also having completed the practical experience requirements. The title Passed Finalist will no longer be in use and students will have to complete both exams and practical experience requirements in order to receive recognition of this qualification.

Syllabus structure
You must gain a minimum of three years relevant work based practical experience. Experience may be drawn from any of the following three areas shown in the table below, but a minimum of 18 months must be gained within the Core area. You must record your practical experience within a Career Profile and submit this to CIMA for assessment. Your approved Career Profile is awarded 50 credits the amount needed to meet the requirements for Part A of the Test of Professional Competence in Management Accounting.

Part A

Part B context relating to one or more fictionalised organisations. However, the context
described in the case material is based on a real business or industry.

The examination is based upon a case study that is set within a simulated business

The examination comprises a three hour assessment of competence, completed within a supervised examination environment. It provides you with an integrated test of syllabus content that is mainly included within the three strategic level papers E3, P3 and F3. However, it will also draw upon content you have covered within the Management and Operational level papers. The Case Study Examination therefore has no specific syllabus content of its own. The Case Study Examination primarily involves your application of strategic management accounting techniques to analyse, recommend and support decisions. You will be required to deal with material in a less structured situation than those encountered in previous strategic level papers, and to integrate a variety of skills to arrive at a recommended solution. It is unlikely that there will be a single right answer to such a complex business problem, and you will be expected to recognise the possible alternatives in dealing with a problem. The emphasis will be on assessing your capabilities and competence in the application of appropriate, relevant knowledge, the ability to demonstrate the higher level skills of synthesis, analysis and evaluation, and skill in effectively presenting and communicating information to users.

Register for updates

Check out our new products

Book your course

@ www.bpp.com/cima/2010