Financial Management Code

Financial management function: Introduction, nature and
purpose of financial management; Financial objectives and
relationship with corporate strategy; Stakeholders and impact on
corporate objectives; Financial and other objectives in not-for-
profit organizations
Financial management environment: Economic environment
for business; nature and role of financial markets, institutions and
money market

Working Capital Management: Introduction, nature, elements
and importance of working capital; Management of inventories,
Accounts
receivable, accounts payable and cash;
Determining working capital needs and funding strategies
Investment Appraisal: Investment appraisal techniques;
Allowing for inflation and taxation in investment appraisal
Adjusting for risk and uncertainty in investment appraisal;
Specific investment decisions (lease or buy;
asset replacement, capital rationing)

Business finance: Sources of and raising business finances, their
relative costs; Estimating the cost of capital, Capital structure
theories and practicalConsiderations;
Finance for small and medium sized entities

Business valuations: Nature and purpose of the valuation of
business and financial assets; Models for the valuation of shares;
valuation of debt and other financial assets;
Efficient market hypothesis (EMH) and practical considerations in
the valuation of shares

Risk management: nature and types of risk and approaches to
risk management; Causes of exchange rate differences and
interest rate fluctuations; Hedging techniques for foreign currency
risk and interest rate risk