Financial Management (FM) Tutorial Letter: May 2013 ... - imm
Page 1 of 2
Financial Management (FM) Tutorial Letter: May 2013 examination session Dear Student Please make note of the following key areas and notes pertaining to the Financial Management May Examination. You are reminded that the detail provided herein is merely a guideline for clarity and direction and you are encouraged to complete the entirety of the module content as outlined in the Learner Guide. Exam Structure The paper consists of six (6) questions resulting in an exam total of 100 marks. All questions must be attempted. Marks are broken down as follows: Question 1 (20 marks), Question 2 (25 marks), Question 3 (10 marks), Question 4 (12 marks), Question 5 (18 marks) and Question 6 (15 marks). Question 1 consists of multiple choice questions involving theoretical concepts and short calculations. All the other questions comprise of a combination of short questions, calculations, analysis of transactions and long questions based on independent scenarios. Exam Content The paper is predominantly calculation based (58% of the paper). However, there are theoretical components within each question from all study units which at times include interpretation and analysis of amounts calculated. In the past many students have neglected the basic theory, principles and concepts identified in study unit 1 as well as in all other units. Question 1 consists of three (3) calculation based questions and the remainder being theoretical principles and definitions.
IMM (GSM) ©
FM May 2013
Page 2 of 2
Calculation focus: Stock valuation calculations (closing stock, cost of sales and gross profit using FIFO and weighted average.), depreciation, calculations aiding the formulation of cash budgets, selling price cost price and mark-up calculations, NPV calculations (Present valuing cash flows per period using discount factors provided to arrive at the NPV), Breakeven analysis (contribution, break even revenue and units etc.) and ratio analysis/ analysis of financials (with particular reference to liquidity ratios and profitability ratios.) You are reminded to have fully grasped the following concepts amongst others in order to master the topics covered in the examination: Long term investment decisions (NPV), Analysis of financial statements and interpretations of ratios, Budgeting (preparing a cash budget based on previous periods), analysis of transactions, Stock valuation (FIFO vs Weighted average), break-even analysis and the classification of costs. Please note the following sections should be read for informative purposes but will NOT be examined: o Forecasting in its entirety (time series, regression etc.) o Introduction to Spreadsheets: Calculations and charts o Analysis of Profit Pathways General Time management per question must be monitored carefully. You are reminded to show your workings and calculations where necessary and ensure that they can be easily referenced. Examiners will not ‘hunt’ for substantiating workings. Number all questions CLEARLY and indicate ‘End’ when you have completed all questions in the exam. Formats of particular answers (such as the cash budget etc.) are important and answers that are poorly structured will be penalised. Use mark allocation as a guide as to how much information is required when formulating your responses. May we remind you that we are always available to assist with academic queries. Academic queries should be submitted in writing to: [email protected] We wish you a successful May 2013 examination session. Kind regards The IMM GSM Team
IMM (GSM) ©
FM May 2013
Financial Management (FM) Tutorial Letter: May 2013 examination session Dear Student Please make note of the following key areas and notes pertaining to the Financial Management May Examination. You are reminded that the detail provided herein is merely a guideline for clarity and direction and you are encouraged to complete the entirety of the module content as outlined in the Learner Guide. Exam Structure The paper consists of six (6) questions resulting in an exam total of 100 marks. All questions must be attempted. Marks are broken down as follows: Question 1 (20 marks), Question 2 (25 marks), Question 3 (10 marks), Question 4 (12 marks), Question 5 (18 marks) and Question 6 (15 marks). Question 1 consists of multiple choice questions involving theoretical concepts and short calculations. All the other questions comprise of a combination of short questions, calculations, analysis of transactions and long questions based on independent scenarios. Exam Content The paper is predominantly calculation based (58% of the paper). However, there are theoretical components within each question from all study units which at times include interpretation and analysis of amounts calculated. In the past many students have neglected the basic theory, principles and concepts identified in study unit 1 as well as in all other units. Question 1 consists of three (3) calculation based questions and the remainder being theoretical principles and definitions.
IMM (GSM) ©
FM May 2013
Page 2 of 2
Calculation focus: Stock valuation calculations (closing stock, cost of sales and gross profit using FIFO and weighted average.), depreciation, calculations aiding the formulation of cash budgets, selling price cost price and mark-up calculations, NPV calculations (Present valuing cash flows per period using discount factors provided to arrive at the NPV), Breakeven analysis (contribution, break even revenue and units etc.) and ratio analysis/ analysis of financials (with particular reference to liquidity ratios and profitability ratios.) You are reminded to have fully grasped the following concepts amongst others in order to master the topics covered in the examination: Long term investment decisions (NPV), Analysis of financial statements and interpretations of ratios, Budgeting (preparing a cash budget based on previous periods), analysis of transactions, Stock valuation (FIFO vs Weighted average), break-even analysis and the classification of costs. Please note the following sections should be read for informative purposes but will NOT be examined: o Forecasting in its entirety (time series, regression etc.) o Introduction to Spreadsheets: Calculations and charts o Analysis of Profit Pathways General Time management per question must be monitored carefully. You are reminded to show your workings and calculations where necessary and ensure that they can be easily referenced. Examiners will not ‘hunt’ for substantiating workings. Number all questions CLEARLY and indicate ‘End’ when you have completed all questions in the exam. Formats of particular answers (such as the cash budget etc.) are important and answers that are poorly structured will be penalised. Use mark allocation as a guide as to how much information is required when formulating your responses. May we remind you that we are always available to assist with academic queries. Academic queries should be submitted in writing to: [email protected] We wish you a successful May 2013 examination session. Kind regards The IMM GSM Team
IMM (GSM) ©
FM May 2013
