F2 Syllabus Overview: Created By: Global CGMA University and Academic Center of Excellence

F2 Syllabus Overview
Created by:
Global CGMA University and Academic Center of Excellence
Global CGMA University and Academic COE

“We attract, inspire and engage the next generation of
CIMA members and CGMAs by increasing awareness
among academics and university students
through identification of best practices, training,
resources and communications, working in partnership
with the regions.”
Global CGMA University and Academic Center of Excellence (COE)

The Association of International Certified Professional Accountants

The COE’s role
Establish consistent global strategy & performance for

academic relations that compliments country efforts
Provide partnership & support
Develop best practices & tools
Align priorities & interests
Develop operational efficiency
3 Global CGMA University and Academic COE

What is this document about?
• This document is part of a series • All resources found in this
that was developed to provide document can be shared with
reading materials, case studies, faculty members and students.
videos, podcasts and other
resources that are relevant to a • Each resource has a link to the
specific exam in the 2019 CIMA webpage for ease of access.
Professional Qualification (PQ). Just click on these icons when
you see them in the following
• These resources are aimed to slides:
help you understand more about
the topics within a specific exam.

The Financial Pillar

2019 CIMA Professional Qualification Framework
Financial Pillar

Summary of the Financial Pillar
Communicate How do we How do we How does

and report on prepare interpret financial
the vision financial financial strategy drive
through a statements? statements and the ambitions of
financial lens. use them to the
support organization?
strategy?

What changed in F2?
2015 syllabus 2019 syllabus

F2: Advanced F2: Advanced
Financial Reporting Financial Reporting
A. Financing capital
A. Sources of long- projects
term finance
B. Financial reporting
standards
B. Financial reporting C. Group accounts
D. Integrated reporting New

C. Analysing financial
statements E. Analysing financial
statements

F2: Structure and outline
Exam weighting: 25%
Financial reporting standards

for preparing group accounts
Exam weighting: 15% Exam weighting: 10%
Exam weighting: 25%

Financing Integrated reporting
Prepare group accounts for
capital in a multi-
stakeholders
projects stakeholder world
Analyse financial statements

to provide insights Exam weighting: 25%

CGMA competencies in a digital world
The competency framework reflects our

findings on how finance professionals are
expected to apply accounting and finance
skills within the context of the business/
organisations in which they operate.
It also reflects for the first time how

technology and a digital mindset will be
required to affect and influence their own
decisions, actions and behaviours and
those of their colleagues within the wider
organisation.

Exam blueprint

The F2 exam blueprint
• For the first time, under the • The blueprints will only be
updated 2019 CIMA Professional applicable to exams scheduled
Qualification, CIMA is publishing
under the 2019 Professional
examination blueprints based on
the syllabus which set out in detail Qualification.
what is examinable in each of the
nine Objective Tests and three
Case Study examinations. Management Level Exam Blueprint
• The Blueprints will be published

annually, and provide information
about the format, structure and
weightings of the assessments.
Key features of the blueprints
• Updated annually
• 3 documents, one per level
• 4 sections
– Overview
– Case study exam business
simulation
– Objective test representative tasks
– Appendices (formulas etc.)

F2 exam dates
F2 exams under the

Scheduling of updated PQ commences
F2 exam under More
the 2019 PQ timeline
starts
4 Nov
2019
1 Aug
2019

Exam overview
Skill level Exam format Pass rates
Remembering Objective test CIMA will publish updated objective test

On-demand pass rates every quarter following the
Understanding
Computerised release of pass rates for case study
Application 60 questions exams.
90 minutes

Examination purpose
• The Objective Tests assure that learners have acquired the fundamental
knowledge, skills and techniques for the role that will be simulated in the
culminating Case Study Examination.
• The Objective Tests will cover all areas of the syllabus and will ensure
that learning has taken place across the breadth of the syllabus.
• The Objective Tests at the management level are weighted towards

remembering, understanding and application with analysis and
evaluation in highly structured scenarios.

“I can” statements
• In the exam blueprint, you will
I can Great! We are find representative task
evaluate the hiring someone statements.
cost and who can….
benefit of…. • Each statement is a plain English
description of what a CIMA
finance professional should know
and be able to do i.e. “I can….”.
Student Employer

“I can” statements (cont’d)
• The content and skill level determine • The task statements in the blueprint
the language and verbs used in the are representative and are not
representative task. intended to be (nor should they be
viewed as) an all-inclusive list of
• CIMA will test up to the level of the
tasks that may be tested on the
task statement in the objective test
Examination.
(an objective test question on a
particular topic could be set at a • The number of tasks associated with
lower level than the task statement in a particular content group or topic is
the blueprint). not indicative of the extent such
content group, topic or related skill
level will be assessed on the test.

A snapshot of the F2 exam blueprint
F2E: Financial Statements Skill level
Lead Component Remembering and Application Analysis Evaluation

outcome outcome understanding Representative task statement
2. Actions a. Analyse the actions that could be
based on Recommended taken to improve an entity’s
insights from actions financial performance and
the financial position, including the
interpretation use of predictive and prescriptive
of financial ratios.
statements
The slides below

will list some of
these
representative
task statement

Topic A – Financing capital projects
F2: Advanced Financial Reporting

Summary
• For selected strategic (capital • This section looks at the sources
investment) projects to be and types of funds and how
implemented, funds must be much they cost.
sourced at the right cost and at
the right time.
• This is a key role of the finance
function and shows how it
enables the organization to
create value.

F2A: Financing capital projects
Lead outcome Component outcome Topics to be covered Explanatory notes
1. Compare and Compare and contrast: • Characteristics of different types • What are the types of funds that can be used
contrast types of shares and long-term debts to finance medium to long-term projects?
and sources a. Long-term debt
of long-term • Ordinary and preference shares • What are their unique and shared profiles
funds. b. Equity finance and under what conditions are they suitable
• Bonds and other types of long- for organisations seeking long-term funds?
c. Markets for long-term term debt
funds • What is the impact of these funds on the risk
• Operations of stock and bond profile of organisations?
markets
• Where can these funds be sourced?
• Issuance of shares and bonds
• What are the criteria that organisations must
• Role of advisors fulfil to access funds from these sources?
.
Skill level:
Remembering and
understanding

F2A: Financing capital projects (cont’d)
2. Calculate cost of Calculate: • Cost of equity using dividend • What is the cost of each type of
long-term funds. valuation model (with or without funds?
a. Cost of equity growth in dividends)
• What is the cost of the total funds
b. Cost of debt • Post-tax cost of bank borrowing used by the organization to fund its
projects?
c. Weighted average cost of • Yield to maturity of bonds and
capital post-tax cost of bonds. • How can the organization minimize
the cost of funds whilst ensuring the
• Post-tax costs of convertible availability of adequate funds at the
bonds up to and including right time and at the same time
conversion. maintaining an appropriate risk
profile?
Skill level:
Application

Example of representative task from exam blueprint
I can calculate the I can calculate the I can calculate the

cost of equity using post-tax cost of weighted average cost of
the dividend convertible bonds up capital (WACC) for an
valuation model, with to and including incorporated entity.
and without growth in conversion.
dividends.
Management Level Exam
Blueprint

Resource list
Topic A – Financing capital projects

Excel techniques in calculating cost of equity
Many techniques can be
employed to value an asset, a
project, a business, a
shareholding, and so on.
However, one is arguably more

common than the rest these
days — net present value (NPV)
using discounted cash flows.

Recent news on capital markets

Recent news on capital markets

Topic B – Financial reporting standards

Summary
• The finance function is • This section examines the
responsible for narrating how building blocks for constructing
organisations create and the narratives in the financial
preserve value. statements.
• Different types of narratives are • It covers the key financial
used for different audiences. reporting standards on which the
• Financial reporting is used for financial statements will be
external stakeholders. based.

F2B: Financial reporting standards
1. Explain relevant financial Explain the financial reporting • FRS 15 – Revenue from Contracts • How should important
reporting standards for standards for: with Customers elements of the financial
revenue, leases, financial statement be treated in the
instruments, intangible a. Revenue • FRS 16 – Leases books?
assets and provisions.
b. Leases • IAS 37 – Provisions, Contingent • What principles should
Liabilities and Contingent Assets underpin these?
c. Provisions
• IFRS 9 – Financial Instruments • How do financial reporting
d. Financial instruments standards help to ensure this?
• IAS 32 – Financial Instruments:
e. Intangible assets Presentation • Using financial reporting
standards terminology this
f. Income taxes • IAS 38 – Intangible Assets part will be looking at issues in
recognition and measurement.
g. Effect of changes on • IAS 12 – Income Taxes
foreign currency rates • The most important issues will
Skill level:
• IAS 21 – Effect of Changes on be considered here.
Application Foreign Exchange Rates

F2B: Financial reporting standards (cont’d)
2. Explain relevant Explain the financial • IAS 1 — Presentation of Financial • What are the key principles that
financial reporting reporting standards for Statements should govern the preparation of
standards for group the key areas of group group accounts?
accounts. accounts. • IAS 27 — Separate Financial Statements
• How are they reflected in financial
• IAS 28 — Investment in Associates and reporting standards?
Joint Ventures
• The approach should focus on the
• IFRS 3 — Business Combinations aspects of group accounts that are
essential for discussions with the
Skill level:
• IFRS 5 — Non-current Assets Held for rest of the business.
Sale or Discontinued Operations
Remembering and • Therefore, the emphasis should be
understanding • IFRS 10 — Consolidated Financial on awareness creation and basic
Statements understanding of the technical
Application elements.
• IFRS 11 — Joint Arrangements

I can determine
whether an entity is
I can determine the I can determine if an a subsidiary by
functional currency and entity has significant applying the three-
presentation currency of an influence or joint part definition of
entity and translate foreign control over another control.
currency transactions and entity
balances.
Management Level
Exam Blueprint

Resource list
Topic B – Financial reporting standards

Amendments to IFRS 16

Amendments to IAS 16

What’s new with IAS 32 - Financial Instruments: Presentation

Improvements to IFRS Standards

Guide to narratives in financial statements

Reports on narratives in financial statements

Annual report insights and advice
A survey of 100
UK listed
companies to
provide insights
into FTSE
reporting
practices.

Transparent corporate reporting
A 2016 assessment by watchdog
group Transparency International
suggests that of the 100 largest
emerging market multinationals,
Indian businesses tend to disclose
the most about their anti-corruption
programmes, operational holdings,
and country-by-country financial
results.

New European Single Electronic Format for financial reports

Expectations of financial reports
Forty-nine per cent of those polled
by Brand Finance said that public
companies in their sector do not
currently provide adequate
information for investors on the
value of their intangible assets, and
48% said companies did not
provide sufficient information on the
value of their brands.

Effect of changes on foreign exchange rates

Relevance of financial reporting in today’s global environment

IFRS conceptual framework

Articles on financial statements
Understanding 8 financial IASB clarifies

major forces of reporting errors definition of
net profit — and how to ‘material’
fix them
Aug 2018 Dec 2018 Nov 2018

Topic C – Group accounts

Summary
• Organisations sometimes • This section covers the
acquire or merge with other application of the relevant
organisations to improve their financial reporting standards to
strategic performance, position prepare group accounts.
and prospects.
• The topics covered are those
• The performance and position of that are essential to conducting
combined operations are conversations with different parts
reported through group of the business about the
accounts. performance of the group and its
component parts.
F2C: Group accounts
1. Prepare Prepare the following based • IAS 1 — Presentation of Financial • This is about the preparation of basic group
group on financial reporting Statements accounts applying the financial reporting
accounts standards: standards learned in the previous section.
based on • IAS 27 — Separate Financial
IFRS. a. Consolidated statement Statements • Basic understanding of the technical issues is
of financial position required.
• IAS 28 — Investment in Associates
b. Consolidated statement and Joint • Thus, it should cover the rules of consolidation,
of comprehensive • Ventures goodwill, foreign subsidiaries, minority
income interests and associated companies.
• IFRS 3 — Business Combinations
c. Consolidated statement • These should be placed in the context of the
of changes in equity • IFRS 5 — Non-current Assets Held organisation’s strategy as executed through
for Sale or Discontinued Operations mergers and acquisitions and the setting up of
d. Consolidated statement subsidiaries.
of cash flows • IFRS 10 — Consolidated Financial
Statements • In addition, it can be linked to the performance
Skill level:
management of responsibility centres.
Application • IFRS 11 — Joint Arrangements

F2C: Group accounts (cont’d)
2. Discuss additional Discuss disclosure • IAS 24 — Related Party • What other issues should be disclosed outside the
disclosure issues requirements related to: Disclosures financial statements? Why?
related to the group
accounts. a. Transaction between • IAS 33 — Earnings Per • Again, the focus is on building awareness and
related parties Share basic understanding of the technical issues in
order to equip finance professionals to conduct
b. Earnings per share meaningful discussions with the rest of the
organisation about the performance, position and
potential of the organisation.
Skill level:
Application

I can determine the need for

I can prepare and the nature of disclosure of
I can translate
extracts from the transactions between
and consolidate
consolidated related parties.
foreign
statement of cash
subsidiaries.
flows under the
indirect method.
Management Level
Exam Blueprint

Resource list
Topic C – Group accounts

IAS 24 — Related Party Disclosures

Important reporting guidance

Topic D – Integrated reporting

Summary
• In a multi-stakeholder world, • The International Integrated
there has been a call for broader Reporting Framework developed
forms of reporting to cover wider by the International Integrated
audiences and issues of concern Reporting Council (IIRC) is one
to them. of the most influential
frameworks that seeks to fulfil
this role.
• This section introduces

candidates to the Framework
and its components.
F2D: Integrated reporting New
1. Discuss the a. Describe the role of the • Context of integrated • This section looks at the International <IR>
International International Integrated reporting Framework as a means of addressing the need for
Framework Reporting Council. wider forms of reporting in a multi-stakeholder
activities. • International Integrated world.
b. Explain integrated thinking. Reporting Council
• It introduces the role of the IIRC and uses the
c. Discuss the International • Integrated thinking concept of integrated thinking as the foundational
<IR> Framework. concept of the International <IR> Framework.
• International <IR>
Framework • It also discusses the Framework, its benefits and
limitations.
• Benefits and limitations of
the Framework
Skill level:
Remembering and
understanding

F2D: Integrated reporting (cont’d)
2. Explain the Explain the measurement and • Definition of the six capitals • The six capitals are a key part of the
Six Capitals disclosure issues of: International <IR> Framework.
of Integrated • Measurement and disclosure
Reporting. a. Financial capital issues relating to the six capitals • This section defines the six capitals and
explains the measurement and disclosure
b. Manufactured capital issues relating to them.
c. Intellectual capital
d. Human capital
e. Social and relationship capital
f. Natural capital
Skill level:
Remembering and
understanding

I can understand the

principles of disclosure
I understand the I can understand the of the capitals in the
objective of the benefits and international integrated
international limitations of reporting framework.
integrated reporting the international .
framework. integrated reporting
framework.
Management Level
Exam Blueprint

Resource list
Topic D – Integrated reporting

What is Integrated Reporting <IR>?
Report released in
December 2013

What does an Integrated Report look like?
Nedbank

CIMA academic research grant provided for <IR>

When <IR> first started in 2012

Materiality in <IR>

IFAC policy position on <IR> in 2017
Summary: Detail report:

Value creation through <IR>
• Since IFAC issued Policy Position Paper
8, Enhanced Organizational Reporting:
Integrated Reporting Key, professional
accountancy organizations (PAOs) and
other interested organizations have
raised various issues and questions as
they explore and encourage integrated
reporting.
• In this Q&A we answer common
questions about integrated reporting.

Integrated reporting in 2019
Integrated
reporting gains
momentum in
Asia
May 2019

Sustainable reporting measure vs integrated reporting
With over 80% of a company’s value now locked
up in intangible assets, including brands, trust,
customer satisfaction, patents and human
resources, businesses need to expand their
financial reporting beyond financial data to assess
their performance.
In addition, companies need to respond to new

risks including environmental and social risks,
representing major threats both in terms of
likelihood and impact.
Topic E – Analysing financial statements

Summary
• The analyses of financial • This section shows how these
statements enable organisations analyses are conducted and
to explain their performance and their limitations.
to compare their performance
and prospects over time and
against others.
• It can show how vulnerable they
and their business models are to
disruption.

F2E: Analysing financial statements
1. Analyse Analyse financial • Ratio analysis • The financial statements narrate how organisations create
financial statements to provide and preserve value using financial numbers.
statements of insight on: • Interpretation of ratios
organisations. • Analyses of financial statements allows finance
a. Performance • Reporting of ratios along professionals to go beyond the numbers and put the
the dimensions of the narrative into everyday business language to facilitate
b. Position Gartner Data Analytics discussions and collaboration with the rest of the
maturity model — organisation.
c. Adaptability descriptive, diagnostic,
predictive and prescriptive • The analysis could be based on the Gartner Data
d. Prospects Analytics model which presents information as
• Link to organisation’s descriptive, diagnostic, predictive and prescriptive.
business model
• Thus, it will cover hindsight, insight and foresight into the
organisation’s performance, position, resilience (or
adaptability) and prospects.
Skill level:
• The analyses can be linked to the organisation’s business
Application
model.

F2E: Analysing financial statements (cont’d)
Lead outcome Component Topics to be covered Explanatory notes
outcome
2. Recommend a. Recommend • Linkages between different areas • Draw logical conclusions from the analysis.
actions based actions of performance
on insights • The focus is mainly predictive and prescriptive areas of
from the • Predictive and prescriptive ratios data analytics.
interpretation
of financial • Impact of recommendations on • The recommendations should also be organisation
statements. wider organisational ecosystem wide and must encompass the ecosystem.
• A link with the business model framework in E2 is New

essential.
Skill level:
Analysis

F2E: Analysing financial statements (cont’d)
Lead outcome Component Topics to be covered Explanatory notes
outcome
3. Discuss the Discuss: • Quality and type of data used • What are the limitations of the data and techniques
limitations of a. Data limitations used in the analyses of financial statements?
the tools used • Comparability — both in segment
for b. Limitations of and internationally • How do they affect the recommendations?
interpreting ratio analysis
financial • How could they be overcome?
statements.
Skill level:
Remembering and
understanding

I can determine the

I can use the
financial performance,
dimensions of the I can analyse the
financial position and
Gartner Data actions that could be
financial adaptability
Analytics maturity taken to improve an
of an entity based on the
model — entity’s financial
information contained in the
descriptive, performance
financial statements.
diagnostic, and financial position,
predictive and including the use of
Management Level
prescriptive predictive and
Exam Blueprint
prescriptive ratios.

Resource list
Topic E – Analysing financial statements

Gartner Data Analytics maturity model

Leveraging on new digital solution for data analytics
“The story of data and analytics
keeps evolving, from supporting
internal decision making to
continuous intelligence, information
products and appointing chief data
officers,” she said. “It’s critical to
gain a deeper understanding of the
technology trends fueling that
evolving story and prioritize them
based on business value.”

Reading materials on using data analytics

Changing business models for long term success

CGMA white paper 2018
Business Models Concepts
• Key focus on how value is
– Defined by customers, investors and other
stakeholders.
– Created through the harnessing of key

resources and relationships.
– Delivered to ever-more demanding and

sophisticated customers.
– Captured for reinvestment and distribution to

shareholders and wider society.

Case study

Ratio analysis – advantages and limitations

More on guidance on financial report analysis

Additional resources

Business games for the classroom
More mini
case studies
and games

CGMA case study author opportunity
• We are offering a unique • Requirement:
opportunity for faculty to review • You must revise and update a
and update former CGMA exam significant portion of the case
case studies. study
• Once updated, the case may be • You must also create teaching
submitted for publication under notes both for this program
the new authors’ name. and to be eligible for
publication submission to a
journal of your choice

CGMA case study author opportunity – relevant cases to F2
IC Optical SparkSpace Portafone Menteen
Eyewear & eye Hardware Cell phone Filmmaking

care manufacturing manufacturing
May 2016 case Aug 2016 case Nov 2016 case Feb 2017 case
study exam study exam study exam study exam

CGMA case study author opportunity – relevant cases to F2
Montel
BES Aurora Auto Manufacturing

of cameras and
Discounted Automotive digital Grapple
merchandise production photographic
retail equipment Soft drinks
May 2017 case Aug 2017 case Aug 2018 case Nov 2018 case
study exam study exam study exam study exam

Contact:
Academic.Partners@aicpa-cima.com
Karen.Phang@aicpa-cima.com

Thank you
Thank you
© 2019 Association of International Certified Professional Accountants. All rights reserved. This presentation’s images are subject to copyright protection and used under license from
third parties. Do not use images from this presentation in other presentations or documents without first consulting with Legal. The use of copyrighted images outside the
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© 2018 Association
Global CGMAof International Certified
University and AcademicProfessional
COE Accountants. All rights reserved.

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F2 Syllabus Overview

Global CGMA University and Academic COE

Global CGMA University and Academic Center of Excellence (COE)

Global CGMA University and Academic COE

Establish consistent global strategy & performance for

Provide partnership & support

Develop best practices & tools

Align priorities & interests

Develop operational efficiency

3 Global CGMA University and Academic COE

4 Global CGMA University and Academic COE

Global CGMA University and Academic COE

6 Global CGMA University and Academic COE

Communicate How do we How do we How does

7 Global CGMA University and Academic COE

2015 syllabus 2019 syllabus

B. Financial reporting C. Group accounts

D. Integrated reporting New

8 Global CGMA University and Academic COE

Financial reporting standards

Exam weighting: 25%

Analyse financial statements

9 Global CGMA University and Academic COE

The competency framework reflects our

It also reflects for the first time how

10 Global CGMA University and Academic COE

Global CGMA University and Academic COE

• The Blueprints will be published

Global CGMA University and Academic COE

F2 exams under the

14 Global CGMA University and Academic COE

Skill level Exam format Pass rates

Remembering Objective test CIMA will publish updated objective test

15 Global CGMA University and Academic COE

• The Objective Tests at the management level are weighted towards

16 Global CGMA University and Academic COE

17 Global CGMA University and Academic COE

18 Global CGMA University and Academic COE

Lead Component Remembering and Application Analysis Evaluation

The slides below

19 Global CGMA University and Academic COE

F2: Advanced Financial Reporting

Global CGMA University and Academic COE

21 Global CGMA University and Academic COE

22 Global CGMA University and Academic COE

23 Global CGMA University and Academic COE

I can calculate the I can calculate the I can calculate the

24 Global CGMA University and Academic COE

Topic A – Financing capital projects

Global CGMA University and Academic COE

However, one is arguably more

26 Global CGMA University and Academic COE

27 Global CGMA University and Academic COE

28 Global CGMA University and Academic COE

F2: Advanced Financial Reporting

Global CGMA University and Academic COE

30 Global CGMA University and Academic COE

31 Global CGMA University and Academic COE

32 Global CGMA University and Academic COE

33 Global CGMA University and Academic COE

Topic B – Financial reporting standards

Global CGMA University and Academic COE

35 Global CGMA University and Academic COE