AFM New Professional Skills Marks

PROFESSIONAL SKILLS
IN STRATEGIC PROFESSIONAL OPTIONS EXAMS
1
AFM NEW PROFESSIONAL SKILLS MARKS
From September 2022, a major change to the ACCA AFM Strategic Professional Options
examinations.
Exam Format:
 Section A question worth 50 marks and
 Section B two questions worth 25 marks each and
Marking Structure:
New changes: The balance of technical and professional skills marks.

 80 Technical marks and
 20 Professional skills marks.
Professional Marks Structure:
 Section A: [50 Marks Question Including 10 Professional Skills Marks]
 Section B [25 Marks 2 Questions 5 out of 7 professional Skills Marks for each questions]
What Professional Skills Are Examined?
1. Communication
2. Analysis & Evaluation
3. Scepticism
4. Commercial Accumen
How Professional Skills Will Examine?
1. Attached to the overall question, rather than individual requirements.
2. Section A (50 Marks 1 Question)
All four professional skills will be examined.
3. Section B (25 Marks 2 Questions)
3 Professional Skills will be examined: combination of Analysis and evaluation,
Scepticism and Commercial acumen.
Note
 No Standard Combination
 Marks not necessarily be an even split across the skills being tested.
 Professional skills will examine as interconnected and tied to the technical requirements.
For example, a thorough evaluation of a matter may require challenges of assumptions/data
(Scepticism) to be made and also evidence from the organisational context to be used to
support a recommendation which has to be commercially sound.
2
PROFESSIONAL SKILLS
Communication
Relevant: Only Q1 Section A (50 Marks Question)
Q1 Substantial marks related to Report.

Catch your professional skills marks (Communication) by:
1. Structure of Report:
a. Report headings & Sub-headings,
b. An introduction which explains the content of the report to follow &
c. Conclusion (Diplomatic)
2. Look Professional:
a. Calculation mention as appendix in the spread sheet
b. Use spreadsheet functions. (Like short cuts of IRR, NPV etc.)
c. For BSOP use the another attach spread sheet function
3. Body of the report:
a. The tone of the report must be logical, concise but clear and progessive.
b. Relevant to the requirement and also adhere to any specific instruction mention
in question.
c. Avoid repetition
Analysis and Evaluation

Relevant: All AFM Questions.
AFM subject having significant amounts of calculation consisting of the use of models or
methods to evaluate financial strategy decisions.
Analysis can be demonstrated by appropriate use of the data/information to determine
suitable calculations to support your evaluation.
Catch your professional skills marks (Analysis & Evaluation) by:
1. Analysis
a. Correctly use data/information.
b. Identify missing data/information for further analysis.
2. Evaluation (Balanced Appraisal)
a. Conclusion (Demonstrate reasoned judgment [based on facts] and come to a
suitable justified conclusion)
b. Decision impact on entity (Like Exhaust debt capacity/shareholder’s wealth)
3
Cautious!
1. For calculation always use the short cuts as mentioned above
2. AFM Exam: Any analysis or evaluation is contextual and must consider the situation in
which the organisation in the question operates.
Scepticism
Relevant: All AFM Questions.
Decision = Information = Must be Accurate, Truthful & Complete

Don’t assume about the information given by the management
 They know all the facts

 They are 100% correct
 The have all the information
Catch your professional skills marks (Scepticism) by:

This professional skills required investigative Mode: Questioning Approach
1. Challenge the information provided
2. Challenge the assumption stated
3. Identify & question about Contradictory Evidence
This is all about, apply professional judgement to draw conclusions and make properly
informed decisions (Balanced decision in terms of Risk & Benefit)
Cautious!
 Diplomatically challenge the information (professional behavior must not be aggressive)
 Asking your-self 3 questions:
1. Is there any evidence to back up the claim?
IF NOT
2. What further evidence could be provided to support or challenge those
claims?
3. Could any of these issues affect the final decision?
4
Commercial Acumen
All AFM questions are set within a commercial scenario.
This is about:
Commercial sound decisions based on:

 Business awareness
 Insights
 Effective judgment
Catch your professional skills marks (business acumen) by:
For any decision you can demonstrate your business acumen skills as follows:
 Recommendations are practical & reasonable (Does it work for this entity?)
 Commercial Sensible = Not just focus on the financial calculations but also long term
commercial impact.
 External constraints & opportunities
 Internal constraints can’t be ignored.
 Forward looking approach
Cautious!
When answering AFM questions
1. For the relevant decision to be considered, anything in the organization’s background,
operations or environment, that could have commercial impact.
2. Focus on relevant areas only, this will demonstrate effective judgment & insights
3. Any recommendation are feasible and not just focus on the financial calculations but
also long term commercial impact.
AFM Publish Questions & Answers (With New Professional Skills Marks)
AFM PE 2 (M/J 21)
AFM PE 1 (M/J 19)
AFM Specimen (S/D 20)

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PROFESSIONAL SKILLS

IN STRATEGIC PROFESSIONAL OPTIONS EXAMS

New changes: The balance of technical and professional skills marks.

Q1 Substantial marks related to Report.

Analysis and Evaluation

Decision = Information = Must be Accurate, Truthful & Complete

 They know all the facts

Catch your professional skills marks (Scepticism) by:

Commercial sound decisions based on:

AFM Specimen (S/D 20)

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