Advanced Performance Syllabus rationale

Management (P5) This is a narrative explaining how the syllabus is

June and December structured and how the main capabilities are linked.
The rationale also explains in further detail what the
2011 examination intends to assess and why.

This syllabus and study guide is designed to help Detailed syllabus

with planning study and to provide detailed
information on what could be assessed in This shows the breakdown of the main capabilities
any examination session. (sections) of the syllabus into subject areas. This is
the blueprint for the detailed study guide.
THE STRUCTURE OF THE SYLLABUS AND
STUDY GUIDE Approach to examining the syllabus

Relational diagram of paper with other papers This section briefly explains the structure of the
examination and how it is assessed.
This diagram shows direct and indirect links
between this paper and other papers preceding or Study Guide
following it. Some papers are directly underpinned
by other papers such as Advanced Performance This is the main document that students, tuition
Management by Performance Management. These providers and publishers should use as the basis of
links are shown as solid line arrows. Other papers their studies, instruction and materials.
only have indirect relationships with each other Examinations will be based on the detail of the
such as links existing between the accounting and study guide which comprehensively identifies what
auditing papers. The links between these are shown could be assessed in any examination session.
as dotted line arrows. This diagram indicates where The study guide is a precise reflection and
you are expected to have underpinning knowledge breakdown of the syllabus. It is divided into sections
and where it would be useful to review previous based on the main capabilities identified in the
learning before undertaking study. syllabus. These sections are divided into subject
areas which relate to the sub-capabilities included
Overall aim of the syllabus in the detailed syllabus. Subject areas are broken
down into sub-headings which describe the detailed
This explains briefly the overall objective of the outcomes that could be assessed in examinations.
paper and indicates in the broadest sense the These outcomes are described using verbs
capabilities to be developed within the paper. indicating what exams may require students to
demonstrate, and the broad intellectual level at
Main capabilities which these may need to be demonstrated
(*see intellectual levels below).
This paper’s aim is broken down into several main
capabilities which divide the syllabus and study Learning Materials
guide into discrete sections.
ACCA's Approved Learning Partner - content (ALP-
Relational diagram of the main capabilities c) is the programme through which ACCA approves
learning materials from high quality content
This diagram illustrates the flows and links between providers designed to support study towards ACCA’s
the main capabilities (sections) of the syllabus and qualifications.
should be used as an aid to planning teaching and
learning in a structured way. ACCA has one Platinum Approved Learning Partner
content which is BPP Learning Media. In addition,
there are a number of Gold Approved Learning
Partners - content.

1
 capabilities. It is also possible that occasionally
For information about ACCA's some higher level capabilities may be assessed at
Approved Learning Partners - content, please go lower levels.
ACCA's Content Provider Directory.
LEARNING HOURS
The Directory also lists materials by Subscribers,
these materials have not been quality assured by The ACCA qualification does not prescribe or
ACCA but they may be useful reading. You will also recommend any particular number of learning hours
find details here of Additional Reading which the for examinations because study and learning
Examiner has suggested may be useful patterns and styles vary greatly between people and
supplementary reading for students. organisations. This also recognises the wide
diversity of personal, professional and educational
ACCA's Content Provider Directory can be found circumstances in which ACCA students find
here – themselves.
http://www.accaglobal.com/learningproviders/alpc/c
ontent_provider_directory/search/. Each syllabus contains between 23 and 35 main
subject area headings depending on the nature of
Relevant articles will also be published in Student the subject and how these areas have been broken
Accountant. down.

INTELLECTUAL LEVELS GUIDE TO EXAM STRUCTURE

The syllabus is designed to progressively broaden The structure of examinations varies within and
and deepen the knowledge, skills and professional between modules and levels.
values demonstrated by the student on their way
through the qualification. The Fundamentals level examinations contain
100% compulsory questions to encourage
The specific capabilities within the detailed candidates to study across the breadth of each
syllabuses and study guides are assessed at one of syllabus.
three intellectual or cognitive levels:
The Knowledge module is assessed by equivalent
Level 1: Knowledge and comprehension two-hour paper based and computer based
Level 2: Application and analysis examinations.
Level 3: Synthesis and evaluation
The Skills module examinations are all paper based
Very broadly, these intellectual levels relate to the three-hour papers. The structure of papers varies
three cognitive levels at which the Knowledge from ten questions in the Corporate and Business
module, the Skills module and the Professional level Law (F4) paper to four 25 mark questions in
are assessed. Financial Management (F9). Individual questions
within all Skills module papers will attract between
Each subject area in the detailed study guide 10 and 30 marks.
included in this document is given a 1, 2, or
3 superscript, denoting intellectual level, marked at The Professional level papers are all three-hour
the end of each relevant line. This gives an paper based examinations, all containing two
indication of the intellectual depth at which an area sections. Section A is compulsory, but there will be
could be assessed within the examination. However, some choice offered in Section B.
while level 1 broadly equates with the Knowledge
module, level 2 equates to the Skills module and For all three hour examination papers, ACCA has
level 3 to the Professional level, some lower level introduced 15 minutes reading and planning time.
skills can continue to be assessed as the student
progresses through each module and level. This This additional time is allowed at the beginning of
reflects that at each stage of study there will be a each three-hour examination to allow candidates to
requirement to broaden, as well as deepen read the questions and to begin planning their

2
answers before they start writing in their answer The term effective relates to when regulation or
books. This time should be used to ensure that all legislation must be applied to an entity transactions
the information and exam requirements are properly and business practices.
read and understood.
The study guide offers more detailed guidance on
During reading and planning time candidates may the depth and level at which the examinable
only annotate their question paper. They may not documents will be examined. The study guide
write anything in their answer booklets until told to should therefore be read in conjunction with the
do so by the invigilator. examinable documents list.

The Essentials module papers all have a Section A

containing a major case study question with all
requirements totalling 50 marks relating to this
case. Section B gives students a choice of two from
three 25 mark questions.

Section A of each of the Options papers contains

50-70 compulsory marks from two questions, each
attracting between 25 and 40 marks. Section B will
offer a choice of two from three questions totalling
30-50 marks, with each question attracting
between 15 and 25 marks.

The pass mark for all ACCA Qualification

examination papers is 50%.

GUIDE TO EXAMINATION ASSESSMENT

ACCA reserves the right to examine anything

contained within the study guide at any examination
session. This includes knowledge, techniques,
principles, theories, and concepts as specified.

For the financial accounting, audit and assurance,

law and tax papers except where indicated
otherwise, ACCA will publish examinable
documents once a year to indicate exactly
what regulations and legislation could potentially be
assessed within identified examination sessions..

For paper based examinations regulation issued or

legislation passed on or before 30th September
annually, will be assessed from June 1st of the
following year to May 31st of the year after.
Please refer to the examinable documents for the
paper (where relevant) for further information.
Regulation issued or legislation passed in
accordance with the above dates may be
examinable even if the effective date is in the
future.
The term issued or passed relates to when
regulation or legislation has been formally approved.

3
 Syllabus MAIN CAPABILITIES

On successful completion of this paper, candidates

should be able to:
BA (P3) APM (P5)
On successful completion of this paper, candidates
should be able to:

A Use strategic planning and control models

PM (F5) to plan and monitor organisational performance

B Assess and identify relevant macro economic,

fiscal and market factors and key external
influences on organisational performance

MA (F2) C Identify and evaluate the design features of

effective performance management information
AIM and monitoring systems

To apply relevant knowledge, skills and exercise D Apply appropriate strategic performance
professional judgement in selecting and applying measurement techniques in evaluating and
strategic management accounting techniques in improving organisational performance
different business contexts and to contribute to the
evaluation of the performance of an organisation E Advise clients and senior management on
and its strategic development. strategic business performance evaluation and
on recognising vulnerability to corporate failure

F Identify and assess the impact of current

developments in management accounting and
performance management on measuring,
evaluating and improving organisational
performance

RELATIONAL DIAGRAM OF MAIN CAPABILITIES

Strategic planning and control (A)

Economic, fiscal, market and environmental factors (B)

Performance Strategic performance

measurement measurement
systems and design (C) (D)

Performance evaluation and corporate failure

(E)

Current developments and emerging issues in management accounting and

performance management
(F)
4
RATIONALE 2. Performance management and control of the
organisation
The Advanced Performance Management syllabus
further develops key aspects introduced in Paper 3. Changes in business structure and
F5, Performance Management, at the skills level management accounting
and draws on aspects of the material covered from a
more strategic and operational planning perspective 4. Effect of Information Technology (IT) on
in Paper P3, Business Analysis. strategic management accounting

The syllabus introduces candidates to the strategic 5. Other environmental and ethical issues
role of management accounting as a discipline for
planning and controlling performance so that B. External influences on organisational
strategic objectives can be set, monitored and Performance
controlled. It also covers the impact of external
factors on strategic management issues, such as 1. Changing business environment
macro economic, fiscal, market and environmental
impacts on performance. From appreciating the 2. Impact of external factors on strategy and
strategic context of performance management and performance
the impact of wider factors, the syllabus examines,
at an operational level, the issues relating to C. Performance measurement systems and
performance measurement systems and their design
design.
1. Performance management information systems
The syllabus then moves from performance
management systems and their design to the scope 2. Sources of management information
and application of high-level performance
measurement techniques in a variety of contexts, 3. Recording and processing methods
including not-for-profit organisations and multi-
national businesses. Having covered the strategic 4. Management reports
aspects of performance management and
operational systems for the measurement and D. Strategic performance measurement
control of performance in a variety of contexts,
candidates are then expected to synthesise this 1. Performance hierarchy
knowledge in the role of an advisor to senior
management or independent clients on how to 2. Strategic performance measures in private
assess and control the performance of an entity, sector
including the recognition of whether a business is
facing difficulties or possibly failure. 3. Divisional performance and transfer pricing
issues
Finally, the syllabus deals with current
developments in performance management and 4. Strategic performance measures in not-for-
with emerging issues as they might affect or profit organisations
influence the management of performance within
organisations. 5. Non- financial performance indictors

DETAILED SYLLABUS 6. The role of quality in management information

and performance measurement systems
A. Strategic planning and control
7. Performance measurement and strategic
1. Introduction to strategic management human resource management issues
accounting
8. Performance measurement and the reward
systems

5
 9. Other behavioural aspects of performance APPROACH TO EXAMINING THE SYLLABUS
measurement
Paper P5 builds on paper F5, Performance
E. Performance evaluation and corporate failure Management, and candidates are expected to have a
thorough understanding of the paper F5 syllabus. In
1. Alternative views of performance measurement addition, candidates will also be required to apply
and management the principles and techniques covered in paper F2,
Management Accounting.
2. Strategic performance issues in complex
business structures Paper P5 has a link with Paper P3, Business
Analysis, in the areas of strategic planning and
3. Predicting and preventing corporate failure control and performance measurement

F. Current developments and emerging issues

performance management EXAMINATION STRUCTURE

1. Current developments in management The examination will be a three hour paper in two
accounting techniques sections:

2. Current issues and trends in performance Section A

management
Section A will comprise two compulsory questions
comprising between 50 and 70 marks in total. Each
question will comprise of between 25 and 40 marks

Section B

In section B candidates will be asked to answer two

from three questions comprising of between 15 and
25 marks each

Total 100 marks

6
Study Guide 3. Changes in business structure and
management accounting

A STRATEGIC PLANNING AND CONTROL a) Identify and discuss the particular information
needs of organisations adopting a functional,
1. Introduction to strategic management divisional or network form and the implications
accounting for performance management. [2]

a) Explain the role of strategic performance b) Assess the influence of Business Process Re-
management in strategic planning and control. engineering on systems development and
[2]
improvements in organisational performance. [3]

b) Discuss the role of corporate planning in c) Discuss the concept of business integration and
clarifying corporate objectives, making strategic the linkage between people, operations,
decisions and checking progress towards the strategy and technology. [2]
objectives. [2]
d) Identify and discuss the required changes in
c) Compare planning and control between the management accounting systems as a
strategic and operational levels within a consequence of empowering staff to manage
business entity. [2] sectors of a business. [2]

d) Assess the use of strategic management 4. Effect of Information Technology (IT) on

accounting in the context of multinational strategic management accounting
companies. [3]
a) Assess the changing accounting needs of
e) Discuss the scope for potential conflict modern service orientated businesses
between strategic business plans and short- compared with the needs of traditional
term localised decisions. [2] manufacturing industry. [3]

f) Evaluate how SWOT analysis may assist in the b) Discuss how IT systems provide the
performance management process. [2] opportunity for instant access to management
accounting data throughout the organisation
g) Evaluate the methods of benchmarking and their potential impact on business
performance. [3] performance. [2]

2. Performance management and control of the c) Discuss how IT systems facilitate the remote
organisation input of management accounting data in an
acceptable format by non-finance specialists. [2]
a) Evaluate the strengths and weaknesses of
alternative budgeting models and compare d) Explain how information systems provide
such techniques as fixed and flexible, rolling, instant access to previously unavailable data
activity based, zero based and incremental. [3] that can be used for benchmarking and control
purposes and help improve business
b) Assess how budgeting may differ in not-for- performance. [2]
profit organisations from profit-seeking
organisations. [3] e) Assess the need for businesses to continually
refine and develop their management
c) Evaluate the impact to an organisation of a accounting and information systems if they are
move beyond budgeting [3] to maintain or improve their performance in an
increasingly competitive and global market. [3]

7
 5. Other environmental and ethical issues planning, management control and operational
control and decision-making. [2]
a) Discuss the ways in which stakeholder groups
operate and how they effect an organisation b) Discuss, with reference to performance
and its strategy formulation and management, ways in which the information
implementation. [2] requirements of a management structure are
affected by the features of the structure. [2]
b) Discuss the ethical issues that may impact on
strategy formulation and business c) Evaluate the compatibility of the objectives of
performance. [3] management accounting and management
accounting information. [3]
c) Discuss the ways in which stakeholder groups
may influence business performance. [2] d) Discuss the integration of management
accounting information within an overall
B EXTERNAL INFLUENCES ON information system, for example the use of
ORGANISATIONAL PERFORMANCE enterprise resource planning systems. [2]

1. Changing business environment e) Evaluate whether the management

information systems are lean and value of the
a) Assess the continuing effectiveness of information that they provide. [3]
traditional management accounting techniques
within a rapidly changing business f) Define and discuss the merits of, and potential
environment. [3] problems with, open and closed systems with
regard to the needs of performance
b) Evaluate how risk and uncertainty play an
management. [2]
important role in long term strategic planning
and decision-making that relies upon forecasts
of exogenous variables. [3] g) Highlight the ways in which contingent
(internal and external) factors influence
2. Impact of external factors on strategy and management accounting and its design and
performance use. [3]

a) Discuss the need to consider the environment h) Advise how anticipated human behaviour will
in which an organisation is operating when influence the design of a management
assessing its performance, including: [2] accounting system. [3]
i) Political climate
ii) Market conditions i) Discuss the impact of responsibility
iii) Funding accounting on information requirements. [2]

b) Assess the impact of governmental regulations 2. Sources of management information

and policies on performance measurement
techniques used and the performance levels a) Identify and discuss the principal internal and
achieved (for example, in the case of utility external sources of management accounting
services and former state monopolies). [3] information. [2]

C PERFORMANCE MEASUREMENT SYSTEMS b) Demonstrate how these principal sources of

AND DESIGN management information might be used for
control purposes. [2]
1. Performance management information
systems c) Identify and discuss the direct data capture
and process costs of management accounting
a) Identify the accounting information information. [2]
requirements and describe the different types
of information systems used for strategic

8
d) Identify and discuss the indirect costs of b) Discuss the ways in which high-level corporate
producing information. [2] performance objectives are developed. [2]

e) Discuss the limitations of using externally c) Identify strategic objectives and discuss how
generated information. [2] they may be incorporated into the business
plan. [2]
f) Demonstrate how the information might be
used in planning and controlling activities e.g. d) Discuss how strategic objectives are cascaded
benchmarking against similar activities. [2] down the organisation via the formulation of
subsidiary performance objectives. [2]
g) Discuss those factors that need to be
considered when determining the capacity and e) Discuss social and ethical obligations that
development potential of a system. [2] should be considered in the pursuit of
corporate performance objectives. [2]
3. Recording and processing methods
f) Explain the performance ‘planning gap’ and
a) Demonstrate how the type of business entity evaluate alternative strategies to fill that gap.[3]
will influence the recording and processing
methods. [2] g) Apply critical success factor analysis in
developing performance metrics from business
b) Discuss how IT developments e.g. unified objectives. [3]
corporate databases and network technology
may influence management accounting h) Identify and discuss the characteristics of
systems. [2] operational performance. [2]

c) Discuss the difficulties associated with i) Discuss the relative significance of planning as
recording and processing data of a qualitative against controlling activities at different levels
nature. [2] in the performance hierarchy. [3]

4. Management reports 2. Strategic performance measures in private

sector
a) Discuss the principal controls required in
generating and distributing internal a) Demonstrate why the primary objective of
information. [2] financial performance should be primarily
concerned with the benefits to shareholders. [2]
b) Discuss the procedures that may be necessary
to ensure security of highly confidential b) Justify the crucial objectives of survival and
information that is not for external business growth. [3]
consumption. [2]
c) Discuss the appropriateness of, and apply
c) Evaluate the output reports of an information different measures of performance,
system in the light of best practice and including: [3]
avoiding the problem of information i) Return on Capital Employed (ROCE)
overload. [3] ii) Return on Investment (ROI)
iii) Earnings Per Share (EPS)
D STRATEGIC PERFORMANCE iv) Earnings Before Interest, Tax,
MEASUREMENT Depreciation and Amortisation (EBITDA)
v) Residual Income (RI)
1. Performance hierarchy vi) Net Present value (NPV)
vii) Internal rate of return and modified
a) Discuss how the purpose, structure and internal Rate of Return (IRR, MIRR)
content of a mission statement impacts on
business performance. [2]

9
 d) Discuss why indicators of liquidity and gearing c) Identify and discuss ways in which
need to considered in conjunction with performance may be judged in not-for profit
profitability. [3] organisations. [2]

e) Compare and contrast short and long run d) Discuss the difficulties in measuring outputs
financial performance and the resulting when performance is not judged in terms of
management issues. [3] money or an easily quantifiable objective. [2]

f) Explore the traditional relationship between e) Discuss how the combination of politics and
profits and share value with the long-term the desire to measure public sector
profit expectations of the stock market and performance may result in undesirable service
recent financial performance of new technology outcomes. [3]
companies. [3]
f) Assess ‘value for money’ service provision as a
g) Assess the relative financial performance of measure of performance in not-for-profit
the organisation compared to appropriate organisations and the public sector. [3]
benchmarks. [3]
5. Non-financial performance indicators
h) Discuss and apply Six Sigma measures of
performance. [2] a) Discuss the interaction of non-financial
performance indicators with financial
3. Divisional performance and transfer pricing performance indicators. [2]
issues
b) Discuss the implications of the growing
a) Describe, compute and evaluate performance emphasis on non-financial performance
measures relevant in a divisionalised indicators. [3]
organisation structure including ROI, RI and
Economic value added (EVA). [3] c) Discuss the significance of non-financial
performance indicators in relation to
b) Discuss the need for separate measures in employees. [2]
respect of managerial and divisional
performance. [2] d) Identify and discuss the significance of non-
financial performance indicators in relation to
c) Discuss the circumstances in which a transfer product/service quality e.g. customer
pricing policy may be needed and discuss the satisfaction reports, repeat business ratings,
necessary criteria for its design. [2] customer loyalty, access and availability. [3]

d) Demonstrate and evaluate the use of e) Discuss the difficulties in interpreting data on
alternative bases for transfer pricing. [3] qualitative issues. [2]

e) Explain and demonstrate issues that require f) Discuss the significance of brand awareness
consideration when setting transfer prices in and company profile and their potential impact
multinational companies. [2] on business performance. [3]

4. Strategic performance measures in not-for- 6. The role of quality in management information

profit organisations and performance measurement systems

a) Highlight and discuss the potential for diversity a) Discuss and evaluate the application of
in objectives depending on organisation type. [3] Japanese business practices and management
accounting techniques, including: [3]
b) Discuss the need to achieve objectives with i) Kaizen costing,
limited funds that may not be controllable. [2] ii) Target costing,
iii) Just-in-time, and
iv) Total Quality Management.

10
b) Discriminate between quality, quality e) Assess the potential beneficial and adverse
assurance, quality control and quality consequences of linking reward schemes to
management.[2] performance measurement, for example, how it
can affect the risk appetite of employees. [3]
c) Assess the relationship of quality management
to the performance management strategy of an 9 Other behaviour aspects of performance
organisation. [3] measurement

d) Advise on the structure and benefits of quality a) Discuss the accountability issues that might
management systems and quality arise from performance measurement
certification. [3] systems. [3]

e) Justify the need and assess the characteristics b) Evaluate the ways in which performance
of quality in management information measurements systems may send the wrong
systems[3] signals and result in undesirable business
consequences. [3]
7. Performance measurement and strategic
Human Resource Management issues c) Demonstrate how management style needs to
be considered when designing an effective
a) Explain how the effective recruitment, performance measurement system. [3]
management and motivation of people is
necessary for enabling strategic and operational E PERFORMANCE EVALUATION AND
success. [3] CORPORATE FAILURE

b) Discuss the judgemental and developmental 1. Alternative views of performance

roles of assessment and appraisal and their measurement and management
role in improving business performance. [3]
a) Evaluate the ‘balanced scorecard’ approach as
c) Advise on the relationship of performance a way in which to improve the range and
management to performance measurement linkage between performance measures. [3]
(performance rating) and determine the
implications of performance measurement to b) Evaluate the ‘performance pyramid’ as a way in
quality initiatives and process redesign. [3] which to link strategy, operations and
performance. [3]
8. Performance measurement and the reward
systems c) Evaluate the work of Fitzgerald and Moon that
considers performance measurement in
a) Explore the meaning and scope of reward business services using building blocks for
systems. [2] dimensions, standards and rewards. [3]

b) Discuss and evaluate different methods of d) Discuss and apply the Performance Prism. [2]
reward practices. [2]
e) Discuss and evaluate the application of
c) Explore the principles and difficulty of aligning activity-based management. [3]
reward practices with strategy. [2]
f) Evaluate and apply the value-based
d) Advise on the relationship of reward management approaches to performance
management to quality initiatives, process re- management. [3]
design and harnessing of e-business
opportunities. [3]

11
 2. Strategic performance issues in complex b) Discuss, evaluate and apply environmental
business structures management accounting. [3]

a) Evaluate the use and the application of c) Discuss the use of benchmarking in public
strategic models in assessing the business sector performance (league tables) and its
performance of an entity, such as Ansoff, effects on operational and strategic
Boston Consulting Group and Porter. [3] management and client behaviour. [3]

b) Discuss the problems encountered in planning, d) Discuss the issues surrounding the use of
controlling and measuring performance levels, targets in public sector organisations. [3]
e.g. productivity, profitability, quality and
service levels, in complex business 2. Current issues and trends in performance
structures. [3] management

c) Discuss the impact on performance a) Assess the changing role of the management
accountant in today’s business environment as
management of the use of business models
outlined by Burns and Scapens. [3]
involving strategic alliances, joint ventures and
complex supply chain structures. [3] b) Discuss contemporary issues in performance
management. [2]
3. Predicting and preventing corporate failure c) Discuss how changing organisation’s structure,
culture and strategy will influence the adoption
a) Assess the potential likelihood of corporate of new performance measurement methods and
failure, utilising quantitative and qualitative techniques. [3]
performance measures. [3]

b) Assess and critique quantitative and qualitative

corporate failure prediction models. [3]

c) Identify and discuss performance improvement

strategies that may be adopted in order to
prevent corporate failure. [3]

d) Discuss how long-term survival necessitates

consideration of life-cycle issues. [3]

e) Identify and discuss operational changes to

performance management systems required to
implement the performance improvement
strategies. [3]

F. CURRENT DEVELOPMENTS AND

EMERGING ISSUES IN PERFORMANCE
MANAGEMENT

1. Current developments in management

accounting techniques

a) Discuss the ways through which management

accounting practitioners are made aware of
new techniques and how they evaluate
them. [3]

12
NOTE OF SIGNIFICANT CHANGES TO P5 The changes made to the P5 syllabus were
therefore implemented to reduce the these overlaps
RATIONALE FOR CHANGES TO P5 and to improve the overall balance of content
between the two papers. As a result, P5 now
ACCA periodically reviews its qualification includes all quality and personnel related
syllabuses so that they fully meet the needs of performance management issues which were
stakeholders such as employers, students, previously covered in the P3 syllabus.
regulatory and advisory bodies and learning
providers. As a result of the latest review, ACCA is In addition to the above reasons, certain subject
making changes to the ACCA Qualification, effective areas in the syllabus have been re-arranged and re-
from June 2011. With each syllabus is included a worded to make the syllabus clearer. Some
specific rationale for these changes as far as each additions have been made to update the syllabus
examination syllabus and study guide is concerned. and to ensure a better alignment with, and
progression from F5.
The changes made in P3 to meet regulatory
requirements, had created some overlaps with P5 in The main changes to the syllabus are as shown in
areas of strategic management accounting. Tables 1 and 2 below:

Table 1 – Additions to P5

Section where additions arise Subject areas where additions are proposed
C1- management accounting and e) Evaluate whether the management information systems are
information system lean and value of the information that they provide

C4- Recording and processing methods b) Discuss how IT eg unified corporate databases and network
technology may influence recording and processing systems
C5- Management reports c) Evaluate the output reports of an information system in the
light of best practice and avoiding the problem of information
overload
D6- The role of quality in management b) Discriminate between quality, quality assurance, quality
accounting control and quality management[3]
c) Assess the relationship of quality management to the
performance management strategy of an organisation[3]
d) Advise on the structure and benefits of quality management
systems and quality certification[3]
e) Justify the need and assess the characteristics of quality in
management information systems[3]

D7- Performance measurement and a) Explain how the effective recruitment, management and
Strategic human resource management motivation of people is necessary for enabling strategic and
operational success[2]
b) Discuss the judgemental and developmental roles of
assessment and appraisal and their role in improving business
performance[3]
c) Advise on the relationship of performance management to
performance measurement (performance rating) and determine
the implications of performance measurement to quality
initiatives and process redesign[3]

D8- Performance measurement and the Explore the meaning and scope of reward systems
reward system Discuss and evaluate different methods of reward practices
Explore the principles and difficulty of aligning reward practices

13
 with strategy
Advise on the relationship of reward management to quality
initiatives, process re-design and harnessing of e-business
opportunities
Assess the potential beneficial and adverse consequences of
linking reward schemes to performance measurement, for
example, how it can affect the risk appetite of employees.

E2- strategic performance issues in complex c) Discuss the impact of the use of business models involving
business structures strategic alliances, joint ventures and complex supply chain
structures on performance management.[3]

F1- Current developments in management d) Discuss the use of benchmarking in public sector performance
accounting techniques (league tables) and its effects on operational and strategic
management and client behaviour. [3]

F2- Current issues and trends in PM c) Discuss the issues surrounding the use of targets in public
sector[3]

Table 2 – Deletions to P5

Section where deletions arise Subject areas where deletions are proposed
A2- Strategic planning and control b) Evaluate pricing and other business strategies in order to
monitor or improve competitive position and performance
B1- Impact of world economic and market a) Assess the impact and influence of external environmental
trends factors on an organisation and its strategy
C4- Recording and processing methods b) Discuss how IT developments e.g. spreadsheets, accountancy
software packages and electronic mail may influence recording
and processing systems

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