E2 Project and relationship management

Syllabus area A: INTRODUCTION TO STRATEGIC MANAGEMENT AND ASSESSING THE GLOBAL

ENVIRONMENT
You must be able to explain

CIMA Official Study Text Chapter

Chapter 1 The concept of strategy
and the rational approach to strategy
development

What is 'strategy'

Strategic management

Levels of strategy

Rational approach including mission, SWOT and stakeholder

analysis

Pros/cons of rational approach

Uncertainty

Emergent approaches to strategy development

Incremental approaches to strategy development

Political approaches to strategy development

Strategy formulation in different contexts (SME, public

sector, not-for-profit organisations)

The link between strategy and structure

Competitive advantage

Generic competitive strategies

Resource based view

Resources/Value chain

Positioning approach

Sustainable competitive advantage

Macro and micro environment

Globalisation

Country and political risk factors

Emerging markets

Porters Diamond model

Porters Five Forces model

Competitive analysis role and key features

Collecting competitor information

Sources, types and quality of competitor information

Analysing and interpreting competitor data

Big Data

Chapter 2 Alternative approaches

to strategy development

Chapter 3 Competitive advantage

Chapter 4 Competitive environment

Chapter 5 Competitive analysis

Syllabus area B: THE HUMAN ASPECTS OF THE ORGANISATION

You must be able to explain

CIMA Official Study Text Chapter

Chapter 6 Leadership and

management

Management concepts

Power/authority/delegation

Leadership approaches

Leadership in different contexts

HR policies and procedures

Equality and diversity

Discipline and grievance/dismissal and redundancy

Health and safety

Performance appraisals

Coaching and mentoring

Behavioural aspects of control

Performance measurement target setting/MBO/Balanced

Scorecard

Trust and control

Concept/importance

Levels

Influences e.g. McKinsey 7S model

Cultural web

Models of culture e.g. Handy

Hofstede

Chapter 7 HRM approaches to

controlling performance

Chapter 8 Behavioural aspects of

control

Chapter 9 Organisational culture

Syllabus area C: MANAGING RELATIONSHIPS

You must be able to explain

CIMA Official Study Text Chapter

Building teams

Chapter 10 Building, leading and

managing teams

Leading and managing teams

Effective team work

Motivating team members

Resolving conflict in teams

Distributive leadership

Communication process/types/tools/problems

Importance of communication skills for Chartered

Management Accountants (CMA)

Non-verbal communication and feedback

Influence/persuasion/negotiation

Sources and causes of conflict in organisations

Forms and types of conflict

Managing conflict

Chapter 11 Techniques for managing

organisational relationships

Managing internal relationships with Finance

CMA as business partner

Shared service centres (SSC) and business process

outsourcing (BPO) with Transaction cost theory
(contractual relationships/SLAs and co-creation)

Finance relationship with professional advisers

Chapter 12 The Finance function and

managing its relationships

Syllabus area D: MANAGING CHANGE THROUGH PROJECTS

You must be able to explain

CIMA Official Study Text Chapter

Types of change

Chapter 13 Managing organisational

change

Triggers for change

Staged model of change management

Principles of change management

Problem identification as a precursor to change

Resistance to change

Managing resistance to change

Definition of project attributes

Time, cost and quality objectives

Purpose/activities at key stages of project lifecycle

Role of project management (PM) methodologies

Chapter 15 Project management tools

PM tools (WBS, Gantt charts, networks, PERT, Scenario planning
and techniques
and buffering

Managing project risk

PM software

Project structures/matrix structure impact on project

achievement

Role and attributes of project manager

Role of CMA in projects

Role of other key players in projects

Managing key project stakeholders

Lifecycle of project teams

Leading and motivating project teams

Chapter 14 Managing projects

Chapter 16 People and projects

P2 Advanced Management Accounting

Syllabus area A: COST PLANNING AND ANALYSIS FOR COMPETITIVE ADVANTAGE
You must be able to explain

CIMA Official Study Text Chapter

Chapter 1
Discuss the advantages and disadvantages of Activity Based
Costing and Activity Based Management

Explain the benefits and limitations of ABC and its advanced

applications such as DPP or CPA

Discuss the advantages and disadvantages of Activity Based

Budgeting

Identify a Pareto situation

Chapter 2
Explain why quality is becoming more important to industries

Explain TQM, JIT, Kaizen approaches, their pre-requisites,

advantages and disadvantages

Explain the Business Process Re-engineering approach

Chapter 3
Explain how a move away from traditional costing techniques
can improve profitability

Explain target costing and cost reduction techniques

Apply the Value Chain model to business analysis

Explain throughput accounting

Chapter 4
Apply learning curves principles to estimate time and cost for
activities

Syllabus area B: CONTROL AND PERFORMANCE MANAGEMENT OF RESPONSIBILITY CENTRES

You must be able to explain

CIMA Official Study Text Chapter

Chapter 5
Discuss the importance of responsibility accounting and the
information needed by managers for decision making

Prepare reports to inform decisions

Recognise behavioural issues linked to the budgeting process

and different degrees of participation

Discuss the pros and cons of the Beyond Budgeting approach

Chapter 6
Interpret key financial metrics of divisional performance, such as
profitability, liquidity, asset turnover, return on investment, RI
and EVA
Chapter 7
Discuss issues arising from the use of performance measures and
budgets for control

Discuss traditional and non traditional approaches to

performance measurement

Manipulate non-financial performance indicators

Discuss transfer pricing systems

Explain the issues surrounding transfer pricing internationally,

when different tax rates are involved

Syllabus area C: LONG TERM DECISION MAKING

Chapter 8

You must be able to explain

CIMA Official Study Text Chapter

Chapters 9 and 10
Identify the relevant cash flows for use in long-term decision
making on investments

Identify non-financial factors in long-term decisions

Explain the different phases in the process of investment

decision making, from origination of proposals to final decision

Explain the concept of the time value of money

Explain different techniques for Investment Appraisal

Explain price elasticity concepts

Discuss different pricing strategies, and their consequences

Explain different types of market structures in which a business

operates, and the pricing implications of that business
environment

Chapter 11

Syllabus area D: MANAGEMENT CONTROL AND RISK

You must be able to explain

CIMA Official Study Text Chapter

Chapter 12
Analyse risk and uncertainty; explain the difference between the
two

Chapter 13
Explain the difference between upside risk and downside risk

Apply the TARA framework to risk management

Discuss the ethical implications of decisions

Discuss the risk associated with the collection and use of

information

Chapter 14

F2 Advanced Financial Reporting

Syllabus area A: SOURCES OF LONG TERM FINANCE
You must be able to explain

CIMA Official Study Text Chapter

Chapter 1 Long term finance

Discuss the characteristics of different types of long-term debt
and equity finance

Discuss the markets for and methods of raising long-term finance

Chapter 2 Cost of capital

Calculate the cost of equity for an incorporated entity using the
dividend valuation model

Calculate the post-tax cost of debt for an incorporated entity

Calculate weighted average cost of capital (WACC) for an

incorporated entity

Syllabus area B: FINANCIAL REPORTING

CIMA Official Study Text Chapter
You must be able to:

Produce primary financial statements for a group of entities

in accordance with relevant international accounting
standards.
Primary financial statements in the syllabus are:

Chapter 12 Basic group accounts F1

Consolidated statement of comprehensive income (profit or
syllabus
loss and other comprehensive income)

Consolidated statement of financial position

Consolidated statement of changes in equity

Chapter 16 Consolidated statement of

changes in equity

Consolidated statement of cash flows

Chapter 17 Consolidated statement of

cash flows

IFRS 3 Business combinations (governs recognition and

measurement of goodwill)

IFRS 11 Joint arrangements

Chapter 13 Basic group accounts F2

syllabus

Relevant accounting standards are:

IAS 1 Presentation of FS

IAS 27 Consolidated and separate FS

IAS 28 Investments in associates and JVs

IFRS 10 Consolidated FS (definition of control)

IFRS 3 Business combinations (governs recognition and

measurement of goodwill)

IFRS 11 Joint arrangements

Discuss the need for and the nature of disclosures of interests in

other entities (IFRS 12)

Chapter 12 Basic group accounts

F1 syllabus

Chapter 13 Basic group accounts

F2 syllabus

Chapter 13 Basic group accounts

F2 syllabus

Discuss the provisions of relevant international accounting

standards, and produce the accounting entries, in respect of the
recognition and measurement of:

Revenue (IAS 18)

Leases (IAS 17)

Financial instruments (IAS 32 & 39)

Provisions (IAS 37)

Share-based payments (IFRS 2)

Deferred taxation (IAS 12)

Construction contracts (IAS 11)

Discuss the ethical selection and adoption of relevant accounting

policies and accounting estimates.

Chapter 7 Revenue and substance

Chapter 6 Leases
Chapter 3 Financial instruments
Chapter 8 Provisions, contingent
liabilities and contingent assets
Chapter 4 Share-based payments
Chapter 9 Deferred tax
Chapter 10 Construction contracts
Chapter 3 to 10

Demonstrate impact of:

Acquiring additional shareholdings

Disposing of all or part of a shareholding

Chapter 15 Changes in group

structure

Demonstrate impact of consolidating a foreign subsidiary

Chapter 18 Foreign currency

translation

Demonstrate impact of acquiring indirect control of a

subsidiary

Chapter 14 Complex groups

Discuss the need for and nature of disclosure of transactions

between related parties

Chapter 11 Related parties

Calculate basic and diluted earnings per share (IAS 33)

Chapter 5 Earnings per share

Syllabus area C: ANALYSIS OF FINANCIAL PERFORMANCE AND POSITION

You must be able to explain

CIMA Official Study Text Chapter

Chapter 19 Analysis of financial

Calculate ratios relevant for the assessment of an entitys
performance and position
profitability, financial performance, financial position and
financial adaptability.
Chapter 19 Analysis of financial
Evaluate the financial performance, financial position and
performance and position
financial adaptability of an entity based on the information
contained in the financial statements provided.
Chapter 19 Analysis of financial
Advise on action that could be taken to improve an entitys
performance and position
financial performance and financial position

Discuss the limitations that can be caused by internal and

external factors:

Inter-segment comparisons

International comparisons

Chapter 19 Analysis of financial

performance and position

For the case study exam the individual paper learning outcomes are
replaced/augmented/supplemented by four generic competencies.
As we explained in Chapter 1, at this level you will be tested on those
competencies expected of a manager.
The weightings for the generic competencies are:

Technical skills 39%

Business skills 24%

People skills 21%

Leadership skills 16%