bpp’s guide to the cima 2015 syllabus · pdf filebpp’s guide to the cima 2015...

BPP’s guide to the CIMA 2015 syllabus changesA handy guide outlining the changes CIMA are making to the syllabus from 2015 and our advice on the steps you should take to ensure you are in the best position.

Passing professional exams is a significant challenge, and one that needs innovative solutions. We are constantly evolving to ensure we stay one step ahead of the professional education market - so please rest assured that BPP will provide you with exactly what you need to confidently pass your new-style exams in 2015 and beyond.

So, five years have nearly gone by and the next new CIMA syllabus is on the horizon. This is going to directly impact the majority of you as your studies progress through 2014 into 2015.

Here at BPP we recognise how important it is for you to be able to plot your way through the qualification in a way that meets all your needs, so we’re going to provide all the information, help and support you need to ensure your route to Chartered Management Accountant status is as smooth as possible.

At this relatively early stage, we think you will benefit by having an easy to digest overview of the new syllabus, as well as some simple to follow advice on how best to direct your studies during 2014.

You will see that the syllabus content itself isn’t changing vastly, although there are quite a few topics moving between papers. The most significant change is around the exams themselves, and how your learning will be assessed. You will see that CIMA are taking big steps to bring their assessment style up to date and, as in today’s office, using a PC is replacing pen and paper.”

Introduction by Steve Malpass, Head of CIMA Programme

CIMA Certificate in Business Accounting

C1: FMA C2: FFA C3: FBM C4: FBE C5: FBL

Member of CIMA

Practical Experience

Strategic Level

E3: Strategic Management P3: Risk Management F3: Financial Strategy

CIMA Adv Diploma in Management Accounting

Management Level

E2: Project & Relationship Management P2: Advanced Management Accounting F2: Advanced Financial Reporting

CIMA Diploma in Management Accounting

Operational Level

E1: Organisational Management P1: Management Accounting F1: Financial Reporting & Taxation

Practical Experience

How are the papers changing in the new syllabus?

The three levels and the three pillars are remaining, as these have proven to be a success in the 2010 syllabus. However, CIMA have recognised two areas that could be improved and taken action accordingly.

1. The current names of the papers don’t really tell you what they cover clearly enough – so you’ll see a move away from the convention whereby a paper name is derived purely from the pillar and level it is in. The new names will be much more meaningful in the wider business environment.

2. As you’ll see in the detailed syllabus changes, CIMA have taken steps to make the progression up each pillar more defined, with core topics being examined within a single pillar, as opposed to moving between them, which used to happen at Strategic Level.

The most obvious change here is the absence of T4 Part B – i.e. the T4 exam that used to represent the final hurdle in the qualification, bar your Practical Experience Requirements. You will see within the detailed assessment changes that this has been replaced with an integrated Strategic Level Case Study exam (which is pretty much what T4 used to be if you think about it).

Please note that CIMA Certificate Level is unaffected by any of these changes.

Here’s CIMA’s description of the new E1 paper

E1 focuses on the structuring of organisations. It covers the structure and principles underpinning the operational functions of the organisation, their efficient management and effective interaction in enabling the organisation to achieve its strategic objectives. It lays the foundation for gaining further insight into both the immediate operating environment and long-term strategic future of organisations, which are covered in E2 and E3.

What does this mean compared to the old one?

Going out Emerging markets, political, economic and social factors – moving to E2, as is some of the human capital section.

Coming in Brand new topics around the purpose of the finance function, and the impact of big data on areas like marketing and IT.


E2 syllabus emphasises a holistic, integrated approach to managing organisations, from external and internal perspectives. It builds on the understanding of organisational structuring gained from E1 and is centred on the concept of strategy and how organisational strategy can be implemented through people, projects, processes and relationships. It provides the basis for developing further insights into how to formulate and implement organisational strategy, which is covered in E3.


Going out Some of the detail around project management is leaving the syllabus altogether.

Coming in Emerging markets, political, economic and social factors – coming from E1, as is some of the human capital section.


The E3 syllabus builds on the insights gained from E1 and E2 about how organisations effectively implement their structures by aligning their structures, people, process, projects and relationships. E3 aims to develop the skills and abilities of the strategic leaders of organisations, enabling them to create the vision and direction for the growth and long-term sustainable success of the organisation. This involves successfully managing and leading change within the process of strategy formulation and implementation.


Going out Nothing significant has been removed from this paper.

Coming in More on ethics, plus expanded coverage of the role of information systems in operational strategy (some of which used to be in P3).

What does this mean for the papers I’ll be studying in 2015?

E1 Paper

AIntroduction to OrganisationsNew section, partly from E1A, as well as covering structure, regulation and professional behaviour

25%

BManaging the Finance FunctionNew section on the purpose of the finance function, and how it supports other areas and strategies.

15%

CManaging Technology and InformationStays the same, but introduces big data and digitisation (20% to 15%)

15%

D Operations ManagementStays the same, from E1C (20% to 15%) 15%

EMarketingStays the same, but introduces the role of big data in marketing (20% to 15%)

15%

F Managing Human ResourcesFrom E1E (20% to 15%) 15%

E2 Paper

AStrategic Management and Assessing the Global EnvironmentSome of this is from E1A; otherwise stays the same as E2A

30%

BThe Human Aspect of the OrganisationFollows on from E1F, and comes partly from E1E, and from E2C.

20%

CManaging RelationshipsOld topic E2C now covered in E2B & C (overall weighting similar)

20%

DManaging Change Through ProjectsComes from E2B; level of detail reduced (to be covered in CPD)

20%

E3 Paper

AInteracting with the Organisation’s EnvironmentStays the same, considers ethical issues, same weighting

20%

BEvaluation of Strategic Position and Strategic OptionsStays the same, moves from E2C, same weighting

30%

C Leading ChangeStays the same, moves from E3B, same weighting 20%

D Implementing StrategyStays the same, moves from 30% to 15% 15%

EThe Role of Information Systems in Organisational StrategyNew topic combined from areas previously covered in E1B and P3D - but expanded and updated

15%

Here’s CIMA’s description of the new P1 paper

P1 stresses the importance of costs and the drivers of costs in the production, analysis and use of information for decision making in organisations. The time focus of P1 is the short-term. It covers budgeting as a means of short-term planning to execute the strategy of organisations. In addition it provides competencies on how to analyse information on costs, volumes and prices to take short-term decisions on products and services and to develop an understanding on the impact of risk to these decisions. P1 provides the foundation for cost management and the long-term decisions covered in P2.


Going out Project appraisal (going to P2), and working capital management (going to F1).

Coming in More on budgeting (from P2) and lots on short-term decision-making like relevant costing, products and prices (also from P2).


Focusing primarily on the long-term, P2 builds on the insights of costs and their drivers (from P1) to provide the competencies needed to analyse, plan and manage costs to support the implementation of the organisation’s strategy. It shows how to manage and control the performance of various units of the organisation in line with both short-term budgets and long-term strategy. Finally, P2 covers investment decision making and the risks associated with such decisions. It provides the basis for developing deeper understanding of various types of risk affecting the strategy and operations of organisations (covered in P3).


Going out Some budgeting (to P1) and anything relating to short-term decision-making like relevant costing, products and prices (also to P1).

Coming in Long-term project appraisal (from P1) and a new section on risk (to plug previous progression gap on risk between P1 and P3).


P3 shows how to identify, evaluate and manage various risks that could adversely affect the implementation of the organisation’s strategy. It provides the competencies required to analyse, evaluate and apply the techniques, processes and internal control systems required to manage risk. This insight is then used to show how to manage the risks associated with both cash flows and capital investment decisions – two important areas of organisational life for which the finance function is responsible.


Going out A small part on risk and control in information systems to E1.

Coming in More on ethics and board responsibilities, more on strategic risk from other pillars, plus specific section on capital investment risks (from F3).

P1 Paper

A Cost Accounting SystemsStays the same, same weighting 30%

BBudgetingBudgeting has been consolidated from P1B and P2C; overall weighting comparable

25%

CShort-Term Decision MakingFrom P2A, but with the focus on short-term product and pricing decisions

30%

D Dealing with Risk and UncertaintyStays the same, same weighting as P1D 15%

P2 Paper

ACost Planning and Analysis for Competitive AdvantageStays the same, from P2B, 30% to 25%

25%

BControl and Performance Measurement of Responsibility CentresExpanded coverage from P2D, 20% to 30%

30%

C Long-Term Decision MakingGenerally comes from P1C and P2A; 25% to 30% 30%

DManagement Control and RiskNew area of risk introduced in management level - to link between risk at operational and strategic levels

15%

P3 Paper

AIdentification, Classification and Evaluation of RiskPartly drawn from P3B, but elevates ethics and board responsibilities

20%

BResponses to Strategic RiskConsolidation of risk from other pillars, emphasising ethics and governance

20%

C Internal Controls to Manage RiskDraws content from P3A-C 20%

D Managing Risks Associated with Cash FlowsGenerally covers the same content as P3D 20%

EManaging Risks Associated with Capital Investment DecisionsThis content has transferred from F3

20%

Here’s CIMA’s description of the new F1 paper

F1 covers the regulation and preparation of financial statements and how the information contained in them can be used. It provides the competencies required to produce financial statements for both individual entities and groups using appropriate international financial reporting standards. It also gives insight into how to effectively source and manage cash and working capital which are essential for both the survival and success of organisations. The final part focuses on the basic principles and application of business taxation. The competencies gained from F1 form the basis for developing further insights into producing and analysing complex group accounts (covered in F2) and formulating and implementing financial strategy (covered in F3).


Going out Nothing significant has been removed from this paper.

Coming in Working capital management (from P1), and bits on developments in external reporting (from F2).


F2 builds on the competencies gained from F1. It covers how to effectively source the long-term finance required to fund the operations of organisations, particularly their capital investments. It also deepens the coverage of financial reporting to more complex aspects of group accounting and analyses the rules governing the recognition and measurement of various elements of the financial statements. Finally it shows how to analyse financial statements to provide insights about the financial performance and position of the organisation over time and in comparison with others.


Going out Developments in external reporting that relate to standards covered in F1 will now be examined in F1.

Coming in Sources of long-term finance (from F3).


F3 focuses on the formulation and implementation of financial strategy to support the overall strategy of the organisation. Using insights gained from F1 and F2, it provides the competencies to evaluate the financing requirements of organisations and the relative merits of alternative sources of finance to meet these requirements. Finally it develops the competencies required to value investment opportunities including the valuation of corporate entities for mergers, acquisitions and divestments.


Going out Sources of long-term finance (to F2), investment appraisal (to P papers).

Coming in New topic on sustainability reporting.

F1 Paper

ARegulatory Environment for Financial Reporting and Corporate GovernanceUpdated coverage, from F1B (15% to 10%)

10%

B Financial Accounting and ReportingStays the same, from F1C (60% to 45%) 45%

CManagement of Working Capital, Cash and Sources of Short-Term FinanceCome from P1E, same coverage product and pricing decisions

20%

D Fundamentals of Business TaxationSame coverage 25%

F2 Paper

A Sources of Long-Term FinanceUpdated coverage, from F3B 15%

B Financial ReportingStays the same, incorporates F2A and B (35% to 60%) 60%

C Analysis of Financial Performance and PositionStays the same (35% to 25%) 25%

F3 Paper

AFormulation of Financial StrategySame coverage, same %, F3AIncludes GRI Sustainability Reporting Framework and IIRC guidance

25%

B Financing and Dividend DecisionsSame coverage, 30% to 35% 35%

CCorporate FinanceSimilar coverage, but investment appraisal moved to P pillar (45% to 40%)

40%

What are the most significant changes to the exams?

By far the biggest change that will impact you in the new syllabus is the style and format of the exams that you will sit. You will see below that there’s three significant changes:

1. All exams will now be PC-based

2. More exams will be ‘on demand’ – so you can sit them when you want

3. Case study/pre-seen style exams are being introduced to ALL levels of the qualification

Each paper will have its own exam as in the current syllabus, but it will be a computer-based objective test (OT) exam, similar to what has been used for many years at Certificate Level, but designed and structured to assess higher levels of understanding – so these are NOT just going to be multi-choice exams!

As well as this each level will have its own integrated case study (ICS) exam – so, one exam, based around a case study, that will include questions going across all three papers within a level. This exam will also be on a PC.

This means we are about to see the end of written exams in the CIMA qualification.

Here’s some more information on the two different kinds of exams

New Objective Test (OT) exams

• On PC

• 90 minutes long

• Short-questions, including multi-choice, multi-response, data entry, fill-in-the-gaps, etc.

• Can be sat at any time – immediate results

New Integrated Case Study (ICS) exams

• On PC

• Three hours long

• Long questions – similar to what we currently see in the exams

• Questions will cover individual papers – total 100 marks

• Will be available in quarterly exam sittings (Feb/May/Aug/Nov) – although the very first sitting will be in March 2015, results 3-4 weeks later (tbc)

• Pre-seen case study – based at all levels

Progression Rules

The new syllabus and exam structure is pretty straightforward in terms of the rules around progressing through the qualification.

1. Must pass/be exempt from all OT exams in a level before can sit that level’s ICS exam

2. However, you can attempt Management Level OT exams before sitting Operational Level ICS if you wish, but cannot sit Management Level ICS until passed Operational Level ICS (in the same way that you can currently sit Operational and Management Level papers in any order if you wish)

3. Cannot sit more than one ICS in any sitting

What are the transition rules if I’m already studying?

Lots of students will be part way through the qualification at the end of 2014. There are some rules around what this means in terms of the exams you’ll need to sit in the new syllabus.

The good news here is that any papers passed in the current syllabus do not need to be taken again in 2015. Regardless of your level our advice here is similar overall - try to pass as many papers as you can.

A sensible target is to at least complete the level you are on by the end of the year (so you avoid having to sit the new Integrated Case Study exam for the level). Put even more simply - try to pass as many papers as you can in the current syllabus!

How will the exams change?

Integrated case study at strategic level to replace T4B as the capstone assessment

Computer based objective tests to test knowledge and understanding with only a bit of application. The case studies will test application, analysis and evaluation.

Integrated Case Study (ICS)

E3 (OT) P3 (OT) F3 (OT)

Strategic Level


E2 (OT) P2 (OT) F2 (OT)

Management Level


E1 (OT) P1 (OT) F1 (OT)

Operational Level

And finally...which papers should I study in the second half of 2014?

This will depend on where you are in the qualification when you get your May 2014 results in July. The following three tables provide detailed advice, based around how many papers you have left to sit in a particular level.

What if I have… What should I do in 2nd half of 2014? Why is this a good idea for me?

…one paper left to sit in Nov 2014?

Definitely sit this paper and think about a Management Level one too

If you pass then you won’t have to do the new ICS exam for Operational Level. Also benefit from studying a Management Level paper within the current (very well understood) syllabus

…two papers left to sit in Nov 2014? Sit them both in the 2nd half Passing them both means you won’t have to do the new ICS exam for

Operational Level, just start on new Management Level

…three papers left to sit in Nov 2014?

Do all three if you can! If not then follow usual route

Passing all three would mean you bypass the ICS exam. If three is too many then make the most of the current syllabus and study two

Operational Level


…one paper left to sit in Nov 2014? Definitely sit this

If you pass then you won’t have to do the new ICS exam for Management Level. Also benefit from studying a Management Level paper within the current (very well understood) syllabus

…two papers left to sit in Nov 2014? Sit them both in the 2nd half Passing them both means you won’t have to do the new ICS exam for

Management Level, just start on new Strategic Level

…three papers left to sit in Nov 2014?

Do all three if you can! If not then follow usual route

Passing all three would mean you bypass the ICS exam. If three is too many then make the most of the current syllabus and study two

Management Level


…one paper left to sit in Nov 2014? Definitely sit this This will just leave you with the ICS exam for Strategic Level in the new

syllabus

…two papers left to sit in Nov 2014? Sit them both in the 2nd half This will just leave you with the ICS exam for Strategic Level in the new

syllabus

…three papers left to sit in Nov 2014? Sit them in 2nd half Benefit from studying Strategic Level within the current (very well

understood) syllabus

…just T4 to go Sit it in Aug/Sept 14Avoids the alternative of having to sit new ICS exam for Strategic Level in 2015 plus two chances under same pre-seen (i.e. can resit in Nov 14 if needs be)

Strategic Level and T4

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