BPPs guide to the CIMA 2015 syllabus changes

A 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.

Introduction
by Steve Malpass, Head of CIMA Programme

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 newstyle exams in 2015 and beyond.
So, ve 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 qualication in a way that meets all your needs, so were 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 benet 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 isnt changing vastly, although there are quite a few topics moving between papers. The most signicant 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 todays office, using a PC is replacing pen and paper.

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 dont really tell you what they cover clearly enough so youll 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 youll see in the detailed syllabus changes, CIMA have taken steps to make the progression up each pillar more dened, 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 nal hurdle in the qualication, 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 Certicate Level is unaffected by any of these changes.

Member of CIMA Practical Experience Strategic Level

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

Practical Experience

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

CIMA Certicate in Business Accounting

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

What does this mean for the papers Ill be studying in 2015?
E1 Paper
A B C D E F Introduction to Organisations
New section, partly from E1A, as well as covering structure, regulation and professional behaviour

Heres CIMAs description of the new E1 paper

25% 15% 15% 15% 15% 15% 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.

Managing the Finance Function

New section on the purpose of the nance function, and how it supports other areas and strategies.

Managing Technology and Information

Stays the same, but introduces big data and digitisation (20% to 15%)

Operations Management Marketing

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

Stays the same, from E1C (20% to 15%) Stays the same, but introduces the role of big data in marketing (20% to 15%)

Coming in

Managing Human Resources

From E1E (20% to 15%)

E2 Paper
A Strategic Management and Assessing the Global Environment
Some of this is from E1A; otherwise stays the same as E2A

Heres CIMAs description of the new E2 paper

30% 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.

B C D

The Human Aspect of the Organisation Managing Relationships

Follows on from E1F, and comes partly from E1E, and from E2C. Old topic E2C now covered in E2B & C (overall weighting similar)

20% 20% 20%

What does this mean compared to the old one?

Going out Some of the detail around project management is leaving the syllabus altogether. Emerging markets, political, economic and social factors coming from E1, as is some of the human capital section.

Managing Change Through Projects

Comes from E2B; level of detail reduced (to be covered in CPD)

Coming in

E3 Paper
A B C D Interacting with the Organisations Environment
Stays the same, considers ethical issues, same weighting

Heres CIMAs description of the new E3 paper

20% 30% 20% 15% 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.

Evaluation of Strategic Position and Strategic Options Leading Change

Stays the same, moves from E2C, same weighting Stays the same, moves from E3B, same weighting

Implementing Strategy

Stays the same, moves from 30% to 15%

What does this mean compared to the old one?

Going out Nothing signicant has been removed from this paper. More on ethics, plus expanded coverage of the role of information systems in operational strategy (some of which used to be in P3).

The Role of Information Systems in Organisational Strategy

New topic combined from areas previously covered in E1B and P3D - but expanded and updated

15%

Coming in

P1 Paper
A B C D Cost Accounting Systems Budgeting
Stays the same, same weighting Budgeting has been consolidated from P1B and P2C; overall weighting comparable

Heres CIMAs description of the new P1 paper

30% 25% 30% 15% 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.

Short-Term Decision Making

From P2A, but with the focus on short-term product and pricing decisions

Dealing with Risk and Uncertainty

Stays the same, same weighting as P1D

What does this mean compared to the old one?

Going out Project appraisal (going to P2), and working capital management (going to F1). More on budgeting (from P2) and lots on short-term decision-making like relevant costing, products and prices (also from P2).

Coming in

P2 Paper
A B C D Cost Planning and Analysis for Competitive Advantage
Stays the same, from P2B, 30% to 25%

Heres CIMAs description of the new P2 paper

25% 30% 30% 15% 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 organisations 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).

Control and Performance Measurement of Responsibility Centres

Expanded coverage from P2D, 20% to 30%

Long-Term Decision Making

Generally comes from P1C and P2A; 25% to 30%

Management Control and Risk

New area of risk introduced in management level to link between risk at operational and strategic levels

What does this mean compared to the old one?

Going out Some budgeting (to P1) and anything relating to shortterm decision-making like relevant costing, products and prices (also to P1). Long-term project appraisal (from P1) and a new section on risk (to plug previous progression gap on risk between P1 and P3).

Coming in

P3 Paper
A Identication, Classication and Evaluation of Risk Responses to Strategic Risk
Partly drawn from P3B, but elevates ethics and board responsibilities Consolidation of risk from other pillars, emphasising ethics and governance

Heres CIMAs description of the new P3 paper

20% P3 shows how to identify, evaluate and manage various risks that could adversely affect the implementation of the organisations 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 ows and capital investment decisions two important areas of organisational life for which the nance function is responsible.

B C D E

20% 20% 20% 20%

Internal Controls to Manage Risk

Draws content from P3A-C

Managing Risks Associated with Cash Flows

Generally covers the same content as P3D

What does this mean compared to the old one?

Going out Coming in A small part on risk and control in information systems to E1. More on ethics and board responsibilities, more on strategic risk from other pillars, plus specic section on capital investment risks (from F3).

Managing Risks Associated with Capital Investment Decisions

This content has transferred from F3

F1 Paper
A B Regulatory Environment for Financial Reporting and Corporate Governance
Updated coverage, from F1B (15% to 10%)

Heres CIMAs description of the new F1 paper

10% 45% F1 covers the regulation and preparation of nancial statements and how the information contained in them can be used. It provides the competencies required to produce nancial statements for both individual entities and groups using appropriate international nancial 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 nal 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 nancial strategy (covered in F3).

Financial Accounting and Reporting

Stays the same, from F1C (60% to 45%)

Management of Working Capital, Cash and Sources of Short-Term Finance

Come from P1E, same coverage product and pricing decisions

20%

Fundamentals of Business Taxation

Same coverage

25%

What does this mean compared to the old one?

Going out Coming in Nothing signicant has been removed from this paper. Working capital management (from P1), and bits on developments in external reporting (from F2).

F2 Paper
A B C Sources of Long-Term Finance
Updated coverage, from F3B

Heres CIMAs description of the new F2 paper

15% 60% 25% F2 builds on the competencies gained from F1. It covers how to effectively source the long-term nance required to fund the operations of organisations, particularly their capital investments. It also deepens the coverage of nancial reporting to more complex aspects of group accounting and analyses the rules governing the recognition and measurement of various elements of the nancial statements. Finally it shows how to analyse nancial statements to provide insights about the nancial performance and position of the organisation over time and in comparison with others.

Financial Reporting

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

Analysis of Financial Performance and Position

Stays the same (35% to 25%)

What does this mean compared to the old one?

Going out Developments in external reporting that relate to standards covered in F1 will now be examined in F1. Sources of long-term nance (from F3).

Coming in

F3 Paper
Formulation of Financial Strategy A
Same coverage, same %, F3A Includes GRI Sustainability Reporting Framework and IIRC guidance

Heres CIMAs description of the new F3 paper

25% F3 focuses on the formulation and implementation of nancial strategy to support the overall strategy of the organisation. Using insights gained from F1 and F2, it provides the competencies to evaluate the nancing requirements of organisations and the relative merits of alternative sources of nance 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.

B C

Financing and Dividend Decisions

Same coverage, 30% to 35%

35% 40%

Corporate Finance

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

What does this mean compared to the old one?

Going out Sources of long-term nance (to F2), investment appraisal (to P papers). New topic on sustainability reporting.

Coming in

How will the exams change?

Integrated case study at strategic level to replace T4B as the capstone assessment Strategic Level Integrated Case Study (ICS)
E3 (OT) P3 (OT) F3 (OT)

Heres 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, ll-in-the-gaps, etc. F2 (OT) Can be sat at any time immediate results

Management Level Integrated Case Study (ICS)

E2 (OT) P2 (OT)

New Integrated Case Study (ICS) exams Operational Level Integrated Case Study (ICS)
E1 (OT) P1 (OT) F1 (OT) 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 rst sitting will be in March 2015, results 3-4 weeks later (tbc) Pre-seen case study based at all levels

Computer based objective tests to test knowledge and understanding with only a bit of application. The case studies will test application, analysis and evaluation. What are the most signicant 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 theres three signicant 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 qualication 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 Certicate 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 qualication.

Progression Rules
The new syllabus and exam structure is pretty straightforward in terms of the rules around progressing through the qualication. 1. Must pass/be exempt from all OT exams in a level before can sit that levels ICS exam 2. You must pass the Operational Level ICS before moving onto the Management Level OT exams and you cannot sit Management Level ICS until passed Operational Level ICS 3. Cannot sit more than one ICS in any sitting

What are the transition rules if Im already studying?

Lots of students will be part way through the qualication at the end of 2014. There are some rules around what this means in terms of the exams youll 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!

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

This will depend on where you are in the qualication 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.

Operational Level What if I have

one paper left to sit in Nov 2014? two papers left to sit in Nov 2014? three papers left to sit in Nov 2014?

What should I do in 2nd half of 2014?

Denitely sit this paper and think about a Management Level one too Sit them both in the 2nd half Do all three if you can! If not then follow usual route

Why is this a good idea for me?

If you pass then you wont have to do the new ICS exam for Operational Level. Also benet from studying a Management Level paper within the current (very well understood) syllabus Passing them both means you wont have to do the new ICS exam for Operational Level, just start on new Management Level 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 What if I have

one paper left to sit in Nov 2014? two papers left to sit in Nov 2014? three papers left to sit in Nov 2014?

What should I do in 2nd half of 2014?

Denitely sit this

Why is this a good idea for me?

If you pass then you wont have to do the new ICS exam for Management Level. Also benet from studying a Management Level paper within the current (very well understood) syllabus Passing them both means you wont have to do the new ICS exam for Management Level, just start on new Strategic Level 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

Sit them both in the 2nd half Do all three if you can! If not then follow usual route

Strategic Level and T4 What if I have

one paper left to sit in Nov 2014? two papers left to sit in Nov 2014? three papers left to sit in Nov 2014? just T4 to go

What should I do in 2nd half of 2014?

Denitely sit this Sit them both in the 2nd half Sit them in 2nd half

Why is this a good idea for me?

This will just leave you with the ICS exam for Strategic Level in the new syllabus This will just leave you with the ICS exam for Strategic Level in the new syllabus Benet from studying Strategic Level within the current (very well understood) syllabus Avoids 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)

Sit it in Aug/Sept 14