F3 Textbook Syllabus
Chapter 1
Syllabus A. Financial policy decisions
A1. Advise on strategic financial objectives
- Types of organisations
- Non-Quantifiable objectives
- Value for Money (VFM)
- Non-financial objectives
- Non-Financial Performance Indicators
- Balanced Score card - Performance
- Financial strategy - international operations
- Limitation of FS - non-financial capital
- Sustainability
- Framework for environmental and sustainability reporting
- 'CSR strategy' and 'strategic CSR
- Purpose and content of an integrated report
- Total Shareholder Return
A2. Financial policy decisions
- Purpose of Financial Management3:48
- Internal, Connected and external Stakeholders
- How different Stakeholder groups interact
- Cashflow Forecasts1:42
- Gordon's growth
- Financing requirements
- Hedging2:58
- Impact of hedge accounting on stakeholder assessment
- Disclosure of financial risk
- Financial objectives and corporate strategy3:51
- Changes in economic and business variables
- Ratios and Strategy
A3. Influences on financial strategic decisions
- Lenders’ assessment of creditworthiness
- Financial strategy- regulatory requirements
- Consideration of taxation regulations
Chapter 2
Syllabus B. Sources of long term funds
B1. Capital structure
- Capital structure theories8:09
- Cost of equity and WACC (M&M)
- Impact of capital structure on ratios
- Capital structure of group companies
B2. Analyse long-term debt finance
- Short term finance7:50
- Money market instruments
- Long term finance2:01
- Factors influencing the choice of debt finance
- Procedures for issuing debt securities
- The role of advisors
- Target debt profile
- Types of foreign currency risk3:13
- Currency Swaps1:05
- Interest rate risk management
- Interest Swaps3:14
- Debt covenants
- Leases - Introduction
- Lease or Buy4:54
- Foreign Exchange Single company
B3. Evaluate equity finance
All subject exam questionsB4. Evaluate dividend policy
All subject exam questionsChapter 3
Syllabus C. Financial risks
C1. The sources and types of financial risks
C2. Evaluate financial risk
C3. Hedging techniques for foreign currency risk
- Forward Rates3:14
- Money Market Hedges - payment9:23
- Money Market Hedge - Receipt6:13
- Currency Futures2:43
- Currency Options
- Currency Swaps1:05
C3. Hedging techniques for interest rate risk
All subject exam questionsChapter 4
Syllabus D. Business valuation
D1. Acquisition, merger and divestment
- Interests of different stakeholders
- Reasons for and against acquisitions, mergers and divestments
- Acquisitions and mergers as a method of corporate expansion
- Synergy
- Taxation implications
- Acquisition by private equity or venture capitalist
- Role and scope of competition authorities
D2. Valuation methods
- Valuations - Introduction7:14
- Market Capitalisation2:01
- Asset Based Valuations3:19
- IAS 38 Intangible asset1:48
- Forms of intangible asset and methods of valuation
- capm3:13
- capm continued
- Share prices (quoted and non-quoted entities)
- Using PE ratio2:03
- Earnings Yield
- Discounted Cashflows
- Discounted Free cash flow basis
- Dividend Valuation
- Efficient Market Hypothesis (EMH)2:20
- Impact of government incentives on entity value
D3. Pricing and bid issues
- Forms of consideration
- Earn-out arrangements
- The conduct of a takeover
- Methods of raising cash
- Treatment of target entity debt
- Divestment
- Spin-offs/demergers
- Sell-offs
- Management buy-out (MBO) and buy-in
- Liquidation
- Going private