To apply relevant knowledge, skills and exercise professional judgement in selecting and applying strategic management accounting techniques in different business contexts and to contribute to the evaluation of the performance of an organisation and its strategic development.

DETAILED SYLLABUS:

A. Strategic planning and control

• 1. Introduction to strategic management accounting
• 2. Appraisal of alternative approaches to budgeting for control
• 3. Changes in business structure and management accounting
• 4. Effect of Information Technology (IT) on modern management accounting

B. Economic, fiscal and environmental factors

• 1. Impact of world economic and market trends
• 2. Impact of national fiscal and monetary policy on performance
• 3. Other environmental and ethical issues

C. Performance measurement systems and design

• 1. Management accounting and information systems
• 2. Internal sources of management information
• 3. External sources of management information
• 4. Recording and processing methods
• 5. Management reports

D. Strategic performance measurement

• 1. Performance hierarchy
• 2. Scope of strategic performance measures in private sector
• 3. Strategic performance issues in complex business structures
• 4. Divisional performance and transfer pricing issues
• 5. Scope of strategic performance measures in not-for-profit organisations
• 6. Behavioural aspects of performance measurement

E. Performance evaluation and corporate failure

• 1. Alternative views of performance measurement
• 2. Non-financial performance indicators
• 3. Predicting and preventing corporate failure

F. Current developments and emerging issues in management accounting and performance management

• 1. Current developments in management accounting techniques
• 2. Current issues and trends in performance management

APPROACH TO EXAMINING THE SYLLABUS

Paper P5 builds on paper F5, Performance Management, and candidates are expected to have a thorough understanding of the paper F5 syllabus. In addition, candidates will also be required to apply the principles and techniques covered in paper F2, Management Accounting. Paper P5 has a link with Paper P3, Business Analysis, in the areas of strategic planning and control and performance measurement

Structure of the examination paper

The examination paper will comprise two sections:

Section A will comprise two compulsory questions normally worth 60 marks. A maximum of 40 marks will be available for either question in Section A.
Since Section A is compulsory it is expected that candidates will not only attempt it in the examination, but will also allocate the appropriate amount of time. The two questions in Section A may or may not be based upon the same scenario.

Section B contains 3 optional questions worth 20 marks each. Candidates will be required to answer two of these questions. At least one of the questions in Part B will be entirely discursive in nature.

Section A:
Answer both questions, total 60 marks
Section B:
Answer two from three questions, 20 marks each
Total: 100 marks