DO NOT OPEN THIS QUESTION PAPER UNTIL YOU ARE TOLD TO DO SO.

Financial Pillar

F2 Financial Management
Friday 28 February 2014

You are allowed three hours to answer this question paper.

You are allowed 20 minutes reading time before the examination begins
during which you should read the question paper and, if you wish, highlight
and/or make notes on the question paper. However, you will not be allowed,
under any circumstances, to open the answer book and start writing or use
your calculator during this reading time.
You are strongly advised to carefully read ALL the question requirements
before attempting the question concerned (that is all parts and/or subquestions).
ALL answers must be written in the answer book. Answers written on the
question paper will not be submitted for marking.
You should show all workings as marks are available for the method you use.
ALL QUESTIONS ARE COMPULSORY.
Section A comprises 5 questions and is on pages 2 to 8.
Section B comprises 2 questions and is on pages 10 to 13.
Maths tables and formulae are provided on pages 15 to 17.
References to IFRS in this paper refer to International Financial Reporting
Standards or International Accounting Standards as issued or adopted by the
International Accounting Standards Board.
The list of verbs as published in the syllabus is given for reference on page
19.
Write your candidate number, the paper number and examination subject title
in the spaces provided on the front of the answer book. Also write your
contact ID and name in the space provided in the right hand margin and seal
to close.
Tick the appropriate boxes on the front of the answer book to indicate the
questions you have answered.

F2 Financial Management

Instructions to candidates

TURN OVER
The Chartered Institute of Management Accountants 2014

SECTION A 50 MARKS
[You are advised to spend no longer than 18 minutes on each question in this section.]

ANSWER ALL FIVE QUESTIONS IN THIS SECTION

Question One

(a)

MR granted 500 share options to each of its 800 employees on 1 January 2013, with the
condition that each employee continues to work for MR for 4 years from the grant date.
The fair value of each share option was $6.00 at 1 January 2013 and $6.50 at 31
December 2013.
In the year to 31 December 2013, 20 employees left and at that date another 55 were
expected to leave over the next three years.

Required:
In accordance with IFRS 2 Share-based Payment:
(i)

calculate the charge to MRs statement of profit or loss for the year ended 31 December
2013 in respect of the share options AND prepare the journal entry to record it; and

(ii)

explain why share options, such as those granted by MR, generate a charge to the
statement of profit or loss despite no cash transaction having occurred.
(5 marks)

Financial Management

March 2014

(b)

MR operates a defined benefit pension plan for its employees. On 1 January 2013, MR
made improvements to the benefits offered by the plan and the actuary estimated that the
past service costs associated with these improvements totalled $5 million.

Required:
Explain, in accordance with IAS 19 Employee Benefits (revised), how:
(i)

the defined benefit pension plan would be accounted for by MR within its financial
statements;

(ii)

the past service costs would be accounted for in the year to 31 December 2013.
(5 marks)
(Total for Question One = 10 marks)

Section A continues on the next page

TURN OVER
March 2014

Financial Management

Question Two
ER holds investments in a number of subsidiaries and associate entities and made one change to
its holdings in 2013, which was the acquisition of LT. The statement of financial position of the ER
group as at 31 December 2013 and its comparative are shown below.

Statement of financial position as at 31 December

ASSETS
Non-current assets
Property, plant and equipment
Goodwill
Investment in associates

2013
$000

2012
$000

24,000
6,300
5,200
35,500

20,200
5,800
4,700
30,700

42,500
78,000

31,700
62,400

Non-controlling interests
Total equity

18,000
1,000
2,000
12,500
33,500
9,200
42,700

15,000
7,600
22,600
8,800
31,400

Non-current liabilities
Long-term borrowings
Current liabilities
Total liabilities

16,000
19,300
35,300

18,000
13,000
31,000

Total equity and liabilities

78,000

62,400

Current assets
Total assets
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital ($1 ordinary shares)
Share premium
Revaluation reserve
Retained earnings

Additional information:
1.

ER acquired 70% of the ordinary shares of LT on 1 July 2013 for a cash consideration of
$400,000 plus the issue of 1 million $1 ordinary shares in ER. On 1 July 2013 the fair value
of an ER share was $1.50. On 1 July 2013 the fair values of the net assets of LT were as
follows:
$000
Property, plant and equipment
1,000
Inventories
800
Receivables
900
Cash and cash equivalents
150
Payables
(850)
2,000
ER measured the non-controlling interest in LT at its proportionate share of the fair value of
the net assets of LT at the acquisition date.

2.

The total comprehensive income attributable to non-controlling interests for the year ended
31 December 2013 was $200,000.

Financial Management

March 2014

3.

There were no disposals of property, plant and equipment in the year. Depreciation
charged in the year ended 31 December 2013 was $1,500,000.

4.

ERs share of associates profit after tax for the year ended 31 December 2013 was
$900,000.

5.

ER paid a dividend in the year of $1 million.

Required:
Prepare the following extracts from the consolidated statement of cash flows for the ER group
for the year ended 31 December 2013, in accordance with IAS 7 Statement of Cash Flows:
(i) cash flows from investing activities; and
(ii) cash flows from financing activities.
(Total for Question Two = 10 marks)

Section A continues on the next page

TURN OVER
March 2014

Financial Management

Question Three

(a)

NAT, a listed entity, had 10,000,000 ordinary $1 shares in issue on 1 January 2013.
On 1 April 2013, NAT made a 1 for 2 bonus issue. On 1 October 2013 NAT issued
2,000,000 ordinary $1 shares at their full market price of $7.60 per share. NATs shares
were trading at $8.05 per share on 31 December 2013.
NATs profit after tax for the year ended 31 December 2013 was $8,200,000.
The basic earnings per share for the year ended 31 December 2012 was previously
reported at 62.3 cents.

Required:
(i)

Calculate the basic earnings per share to be reported in the financial statements of NAT
for the year ended 31 December 2013, including the comparative figure, in accordance
with IAS 33 Earnings Per Share.

(ii)

Explain why the bonus issue of shares and the share issue at full market price are
treated differently in the calculation of the basic earnings per share.
(7 marks)

(b)

NAT issued a convertible debt instrument on 1 January 2013. The liability element of the
instrument had a value of $6,000,000 on 1 January 2013. The effective interest rate in
respect of this liability was 5% per annum. If fully converted 1,500,000 ordinary $1 shares
would be issued. NAT is subject to corporate income tax at a rate of 30%.

Required:
Calculate the diluted earnings per share to be reported in the financial statements of NAT for
the year ended 31 December 2013, in accordance with IAS 33 Earnings Per Share.
(3 marks)
(Total for Question Three = 10 marks)

Financial Management

March 2014

Question Four

(a)

RD operates in Country A and has established the A$ as its functional currency.

RD acquired a piece of machinery from an overseas supplier at a cost of B$5 million on 20
November 2013. The invoice remained unpaid at the year ended 31 December 2013.
Relevant exchange rates (where A$/B$ 2.00 means A$1 = B$2.00) are:
20 November 2013
31 December 2013

A$/B$2.00
A$/B$2.15

Required:
In accordance with IAS 21 The Effects of Changes in Foreign Exchange Rates:
(i)

explain how RD would have established the A$ as its functional currency; and

(ii)

calculate the amounts to be included in the financial statements of RD for the year to
31 December 2013 in respect of the above transaction.
(6 marks)

(b)

RD acquired 200,000 equity shares in AB on 1 December 2013 for A$4.05 per share,
incurring 0.6% brokers commission on the transaction. ABs shares were trading at A$4.23
on 31 December 2013. RD classified its investment in AB as a financial asset held at fair
value through profit or loss.

Required:
Prepare, in accordance with IAS 39 Financial Instruments: Recognition and Measurement,
the journal entries to record:
(i)

the initial measurement of the investment at 1 December 2013; and

(ii)

the subsequent measurement of the investment in RDs financial statements at

31 December 2013.
(4 marks)
(Total for Question Four = 10 marks)

Section A continues on the next page

TURN OVER
March 2014

Financial Management

Question Five
A student accountant within your organisation is responsible for conducting initial reviews on
entities that the management has identified as potential investments or takeover targets.
He was recently asked to review a set of financial statements for an organisation that operates in
a service industry. He commented that he was finding it difficult to understand how the entity was
generating revenue. There were significant expenses in the statement of profit or loss for wages
and there was a detailed section in the management report on the investment the entity had made
in staff training and development; however the entitys statement of financial position had almost
no assets. The student was questioning how he could make a realistic assessment of the likely
future performance of the entity.

Required:
(a) Discuss why, despite an entity investing in staff training and development, the
statement of financial position does not contain an asset relating to human resources.
(6 marks)

(b) Discuss why a potential investor might not wish to rely solely on the financial
information within the financial statements of a service-based entity in order to make
investment decisions.
(4 marks)
(Total for Question Five = 10 marks)

(Total for Section A = 50 marks)

End of Section A
Section B starts on page 10

Financial Management

March 2014

Question six starts on the next page

TURN OVER
March 2014

Financial Management

SECTION B 50 MARKS
[You are advised to spend no longer than 45 minutes on each question in this section.]

ANSWER BOTH QUESTIONS IN THIS SECTION 25 MARKS EACH

Question Six
Extracts from the financial statements of MAT, X and Y are presented below.

Statements of financial position as at

31 December 2013
ASSETS
Non-current assets
Property, plant and equipment
Investment in X
Investment in Y

MAT

$m

$m

$m

80
70
40
190

70
70

60
60

Current assets
Total assets

30
220

40
110

20
80

EQUITY AND LIABILITIES

Equity attributable to owners of the
parent
Share capital ($1 equity shares)
Share premium
Other reserves
Retained earnings
Total equity

60
20
7
65
152

40
5
43
88

30
5
25
60

Non-current liabilities
Current liabilities
Total liabilities
Total equity and liabilities

50
18
68
220

22
22
110

20
20
80

Additional information:
1.

MAT acquired 80% of the equity share capital of X on 1 January 2011 when the retained
earnings of X were $25 million. This acquisition resulted in MAT having power over X
which, when exercised, affects its return from the investment. X has not issued any shares
since the acquisition date. The non-controlling interest in X was measured at its fair value
of $20 million at the date of acquisition.

2.

MAT acquired 50% of the equity share capital of Y on 1 January 2012 when the retained
earnings of Y were $11 million. This acquisition was classified as a joint venture in
accordance with IFRS 11 Joint Arrangements. Y has not issued any shares since the
acquisition date.

3.

MAT conducted its annual impairment review and concluded that the goodwill on the
acquisition of X was impaired by 20% at 31 December 2013. No other impairments of
goodwill have arisen.

Financial Management

10

March 2014

4.

The balance on other reserves relates to movements in the values of investments in X

and Y in the books of MAT. $5 million relates to X and the remainder to Y.

5.

MATs non-current liabilities represent a long-term borrowing taken out on 1 January 2013.
The borrowing has a coupon rate of 4% per annum and the interest due in respect of 2013
has been paid and charged to profit for the year. The effective interest rate associated with
this instrument is 8% per annum.

6.

For the first time in November 2013, MAT sold goods to Y with a value of $20 million and a
gross margin of 40%. At 31 December 2013, 75% of these items remained in Ys
inventories.

Required:
(a)

Prepare the consolidated statement of financial position for the MAT group as at
31 December 2013.
(19 marks)

MAT acquired a further 4,000,000 of the equity shares of X on 1 January 2014 for $14 million.

Required:
(b)
(i)

Explain how this additional acquisition will impact on the preparation of the
consolidated financial statements of MAT for the year to 31 December 2014.

(ii)

Calculate the adjustment that will be required to be made to the groups statement of
financial position in respect of this acquisition.
(6 marks)
(Total for Question Six = 25 marks)

Section B continues on the next page

TURN OVER
March 2014

11

Financial Management

Question Seven
ROB is considering investing in LW, a listed entity, and has asked for your analysis of the financial
performance and financial position of LW based on the most recently published financial
information.
LW is a manufacturing entity operating in the technology sector. The entity has two large
manufacturing plants, one in Asia and the other in South America. The majority of sales revenue
is earned in Europe and North America.
LW recently invested in technology associated with mobile phone ports for motor vehicles and
sales of these items began on 1 April 2013.
The financial statements for LW are provided below:

Consolidated statement of financial position as

at 31 December
ASSETS
Non-current assets
Property, plant and equipment
Intangible assets development costs
Current assets
Inventories
Trade and other receivables
Cash and cash equivalents
Total assets
EQUITY AND LIABILITIES
Equity
Share capital ($1 shares)
Share premium
Other elements of equity
Revaluation reserve
Retained earnings
Total equity
Non-current liabilities
5% convertible debt 2015
Provisions
Current liabilities
Trade and other payables
Short-term borrowings
Total liabilities
Total equity and liabilities

Financial Management

12

2013

2012

$m

$m

290
50
340

235
30
265

110
75
185
525

80
60
10
150
415

80
30
2
20
220
352

60
10
2
248
320

22
14
36

20
5
25

120
17
137
173
525

70
70
95
415

March 2014

Consolidated statement of comprehensive

income for the year ended 31 December
Revenue
Cost of sales
Gross profit
Administrative expenses
Distribution costs
Finance costs
Profit before tax
Income tax expense
Profit for the year
Other comprehensive income that will not be
reclassified to profit or loss
Revaluation gains from property (net of tax)
Total comprehensive income

2013

2012

$m
470
(285)
185
(56)
(70)
(5)
54
(15)
39

$m
410
(260)
150
(35)
(60)
(1)
54
(13)
41

20
59

41

Additional information:
1. Included in provisions is $8 million in respect of a lawsuit that was raised by a competitor, X
which is accusing LW of using technology developed by X, without a licence. The lawsuit
was filed in December 2013 and the provision represents the initial estimate by LWs legal
advisors of a potential settlement. The provision has been recognised in accordance with
IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
2. There was a significant labour dispute in February 2013 in the manufacturing plant in South
America. LW settled the dispute within one month but incurred significant legal fees in the
process.

Required:
(a) Analyse the financial performance and the financial position of LW.
(8 marks are available for the calculation of relevant ratios.)
(20 marks)

(b) Discuss why investors may find it useful to review the segmental information of LW
when attempting to assess the future profitability of LW.
(5 marks)
(Total for Question Seven = 25 marks)

(Total for Section B = 50 marks)

End of Question Paper

Maths Tables and Formulae are on pages 15 to 17

March 2014

13

Financial Management

This page is blank

Financial Management

14

March 2014

MATHS TABLES AND FORMULAE

Present value table
-n

Present value of $1, that is (1 + r) where r = interest rate; n = number of periods until payment or receipt.
Periods
(n)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

1%
0.990
0.980
0.971
0.961
0.951
0.942
0.933
0.923
0.914
0.905
0.896
0.887
0.879
0.870
0.861
0.853
0.844
0.836
0.828
0.820

2%
0.980
0.961
0.942
0.924
0.906
0.888
0.871
0.853
0.837
0.820
0.804
0.788
0.773
0.758
0.743
0.728
0.714
0.700
0.686
0.673

3%
0.971
0.943
0.915
0.888
0.863
0.837
0.813
0.789
0.766
0.744
0.722
0.701
0.681
0.661
0.642
0.623
0.605
0.587
0.570
0.554

4%
0.962
0.925
0.889
0.855
0.822
0.790
0.760
0.731
0.703
0.676
0.650
0.625
0.601
0.577
0.555
0.534
0.513
0.494
0.475
0.456

Interest rates (r)

5%
6%
0.952
0.943
0.907
0.890
0.864
0.840
0.823
0.792
0.784
0.747
0.746
0.705
0.711
0.665
0.677
0.627
0.645
0.592
0.614
0.558
0.585
0.527
0.557
0.497
0.530
0.469
0.505
0.442
0.481
0.417
0.458
0.394
0.436
0.371
0.416
0.350
0.396
0.331
0.377
0.312

7%
0.935
0.873
0.816
0.763
0.713
0.666
0.623
0.582
0.544
0.508
0.475
0.444
0.415
0.388
0.362
0.339
0.317
0.296
0.277
0.258

8%
0.926
0.857
0.794
0.735
0.681
0.630
0.583
0.540
0.500
0.463
0.429
0.397
0.368
0.340
0.315
0.292
0.270
0.250
0.232
0.215

9%
0.917
0.842
0.772
0.708
0.650
0.596
0.547
0.502
0.460
0.422
0.388
0.356
0.326
0.299
0.275
0.252
0.231
0.212
0.194
0.178

10%
0.909
0.826
0.751
0.683
0.621
0.564
0.513
0.467
0.424
0.386
0.350
0.319
0.290
0.263
0.239
0.218
0.198
0.180
0.164
0.149

Periods
(n)
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20

11%
0.901
0.812
0.731
0.659
0.593
0.535
0.482
0.434
0.391
0.352
0.317
0.286
0.258
0.232
0.209
0.188
0.170
0.153
0.138
0.124

12%
0.893
0.797
0.712
0.636
0.567
0.507
0.452
0.404
0.361
0.322
0.287
0.257
0.229
0.205
0.183
0.163
0.146
0.130
0.116
0.104

13%
0.885
0.783
0.693
0.613
0.543
0.480
0.425
0.376
0.333
0.295
0.261
0.231
0.204
0.181
0.160
0.141
0.125
0.111
0.098
0.087

14%
0.877
0.769
0.675
0.592
0.519
0.456
0.400
0.351
0.308
0.270
0.237
0.208
0.182
0.160
0.140
0.123
0.108
0.095
0.083
0.073

Interest rates (r)

15%
16%
0.870
0.862
0.756
0.743
0.658
0.641
0.572
0.552
0.497
0.476
0.432
0.410
0.376
0.354
0.327
0.305
0.284
0.263
0.247
0.227
0.215
0.195
0.187
0.168
0.163
0.145
0.141
0.125
0.123
0.108
0.107
0.093
0.093
0.080
0.081
0.069
0.070
0.060
0.061
0.051

17%
0.855
0.731
0.624
0.534
0.456
0.390
0.333
0.285
0.243
0.208
0.178
0.152
0.130
0.111
0.095
0.081
0.069
0.059
0.051
0.043

18%
0.847
0.718
0.609
0.516
0.437
0.370
0.314
0.266
0.225
0.191
0.162
0.137
0.116
0.099
0.084
0.071
0.060
0.051
0.043
0.037

19%
0.840
0.706
0.593
0.499
0.419
0.352
0.296
0.249
0.209
0.176
0.148
0.124
0.104
0.088
0.079
0.062
0.052
0.044
0.037
0.031

20%
0.833
0.694
0.579
0.482
0.402
0.335
0.279
0.233
0.194
0.162
0.135
0.112
0.093
0.078
0.065
0.054
0.045
0.038
0.031
0.026

March 2014

15

Financial Management

Cumulative present value of $1 per annum,

Receivable or Payable at the end of each year for n years
Periods
(n)
1
2
3
4
5

1 (1+ r ) n
r

1%
0.990
1.970
2.941
3.902
4.853

2%
0.980
1.942
2.884
3.808
4.713

3%
0.971
1.913
2.829
3.717
4.580

4%
0.962
1.886
2.775
3.630
4.452

Interest rates (r)

5%
6%
0.952
0.943
1.859
1.833
2.723
2.673
3.546
3.465
4.329
4.212

7%
0.935
1.808
2.624
3.387
4.100

8%
0.926
1.783
2.577
3.312
3.993

9%
0.917
1.759
2.531
3.240
3.890

10%
0.909
1.736
2.487
3.170
3.791

6
7
8
9
10

5.795
6.728
7.652
8.566
9.471

5.601
6.472
7.325
8.162
8.983

5.417
6.230
7.020
7.786
8.530

5.242
6.002
6.733
7.435
8.111

5.076
5.786
6.463
7.108
7.722

4.917
5.582
6.210
6.802
7.360

4.767
5.389
5.971
6.515
7.024

4.623
5.206
5.747
6.247
6.710

4.486
5.033
5.535
5.995
6.418

4.355
4.868
5.335
5.759
6.145

11
12
13
14
15

10.368
11.255
12.134
13.004
13.865

9.787
10.575
11.348
12.106
12.849

9.253
9.954
10.635
11.296
11.938

8.760
9.385
9.986
10.563
11.118

8.306
8.863
9.394
9.899
10.380

7.887
8.384
8.853
9.295
9.712

7.499
7.943
8.358
8.745
9.108

7.139
7.536
7.904
8.244
8.559

6.805
7.161
7.487
7.786
8.061

6.495
6.814
7.103
7.367
7.606

16
17
18
19
20

14.718
15.562
16.398
17.226
18.046

13.578
14.292
14.992
15.679
16.351

12.561
13.166
13.754
14.324
14.878

11.652
12.166
12.659
13.134
13.590

10.838
11.274
11.690
12.085
12.462

10.106
10.477
10.828
11.158
11.470

9.447
9.763
10.059
10.336
10.594

8.851
9.122
9.372
9.604
9.818

8.313
8.544
8.756
8.950
9.129

7.824
8.022
8.201
8.365
8.514

11%
0.901
1.713
2.444
3.102
3.696

12%
0.893
1.690
2.402
3.037
3.605

13%
0.885
1.668
2.361
2.974
3.517

14%
0.877
1.647
2.322
2.914
3.433

Interest rates (r)

15%
16%
0.870
0.862
1.626
1.605
2.283
2.246
2.855
2.798
3.352
3.274

17%
0.855
1.585
2.210
2.743
3.199

18%
0.847
1.566
2.174
2.690
3.127

19%
0.840
1.547
2.140
2.639
3.058

20%
0.833
1.528
2.106
2.589
2.991

6
7
8
9
10

4.231
4.712
5.146
5.537
5.889

4.111
4.564
4.968
5.328
5.650

3.998
4.423
4.799
5.132
5.426

3.889
4.288
4.639
4.946
5.216

3.784
4.160
4.487
4.772
5.019

3.685
4.039
4.344
4.607
4.833

3.589
3.922
4.207
4.451
4.659

3.498
3.812
4.078
4.303
4.494

3.410
3.706
3.954
4.163
4.339

3.326
3.605
3.837
4.031
4.192

11
12
13
14
15

6.207
6.492
6.750
6.982
7.191

5.938
6.194
6.424
6.628
6.811

5.687
5.918
6.122
6.302
6.462

5.453
5.660
5.842
6.002
6.142

5.234
5.421
5.583
5.724
5.847

5.029
5.197
5.342
5.468
5.575

4.836
4.988
5.118
5.229
5.324

4.656
4.793
4.910
5.008
5.092

4.486
4.611
4.715
4.802
4.876

4.327
4.439
4.533
4.611
4.675

16
17
18
19
20

7.379
7.549
7.702
7.839
7.963

6.974
7.120
7.250
7.366
7.469

6.604
6.729
6.840
6.938
7.025

6.265
6.373
6.467
6.550
6.623

5.954
6.047
6.128
6.198
6.259

5.668
5.749
5.818
5.877
5.929

5.405
5.475
5.534
5.584
5.628

5.162
5.222
5.273
5.316
5.353

4.938
4.990
5.033
5.070
5.101

4.730
4.775
4.812
4.843
4.870

Periods
(n)
1
2
3
4
5

Financial Management

16

March 2014

FORMULAE
Annuity
Present value of an annuity of $1 per annum receivable or payable for n years, commencing in
one year, discounted at r% per annum:

PV =

1
1
1

r
[1 + r ]n

Perpetuity
Present value of $1 per annum receivable or payable in perpetuity, commencing in one year,
discounted at r% per annum:
PV =

1
r

Growing Perpetuity
Present value of $1 per annum, receivable or payable, commencing in one year, growing in
perpetuity at a constant rate of g% per annum, discounted at r% per annum:
PV =

March 2014

17

1
r g

Financial Management

This page is blank

Financial Management

18

March 2014

LIST OF VERBS USED IN THE QUESTION REQUIREMENTS

A list of the learning objectives and verbs that appear in the syllabus and in the question requirements for
each question in this paper.
It is important that you answer the question according to the definition of the verb.
LEARNING OBJECTIVE
Level 1 - KNOWLEDGE
What you are expected to know.

Level 2 - COMPREHENSION
What you are expected to understand.

VERBS USED

DEFINITION

List
State
Define

Make a list of
Express, fully or clearly, the details/facts of
Give the exact meaning of

Describe
Distinguish
Explain

Communicate the key features

Highlight the differences between
Make clear or intelligible/State the meaning or
purpose of
Recognise, establish or select after
consideration
Use an example to describe or explain
something

Identify
Illustrate
Level 3 - APPLICATION
How you are expected to apply your knowledge.

Apply
Calculate
Demonstrate
Prepare
Reconcile
Solve
Tabulate

Level 4 - ANALYSIS
How are you expected to analyse the detail of
what you have learned.

Level 5 - EVALUATION
How are you expected to use your learning to
evaluate, make decisions or recommendations.

March 2014

Analyse
Categorise
Compare and contrast

Put to practical use

Ascertain or reckon mathematically
Prove with certainty or to exhibit by
practical means
Make or get ready for use
Make or prove consistent/compatible
Find an answer to
Arrange in a table

Construct
Discuss
Interpret
Prioritise
Produce

Examine in detail the structure of

Place into a defined class or division
Show the similarities and/or differences
between
Build up or compile
Examine in detail by argument
Translate into intelligible or familiar terms
Place in order of priority or sequence for action
Create or bring into existence

Advise
Evaluate
Recommend

Counsel, inform or notify

Appraise or assess the value of
Advise on a course of action

19

Financial Management

Financial Pillar

Management Level Paper

F2 Financial Management

March 2014

Friday

Financial Management

20

March 2014