| ign="center"> | | | | Decision-making, Budgeting, Standard costing and |
| The current economic climate is without question | | | | variance analysis and, Performance measurement and |
| proving difficult for businesses of every complexion, in | | | | control. |
| all sectors, throughout the world. Against this backdrop, | | | | Although these are seemingly broad definitions, every |
| the ACCA (the Association of Chartered Certified | | | | topic is broken down into two or three important, |
| Accountants) a global leader in the accountancy | | | | constituent parts. For example, Part A covers target |
| profession, maintains that business value creation is | | | | costing, a methodology developed to cope with a |
| central to achieving a sustainable economic recovery. | | | | marketing and customer centric orientated businesses, |
| With this in mind, the body’s Accountancy | | | | and which has led to the creation of multifunctional |
| for Business programme, seeks to highlight the key | | | | approaches to production and the elevation of planning |
| role that finance professionals can play in value | | | | and design in this process. Part B looks at the |
| creation. This can be achieved through the promotion | | | | decision-making techniques such as transfer pricing |
| of sound and effective business practices, such a | | | | and linear programming. These can be deployed to |
| performance measurement, are vital in driving great | | | | effectively factor in the risks and uncertainties |
| business outcomes. | | | | surrounding scare resources, pricing and choosing |
| The ACCA’s management accounting | | | | whether to make or buy an item. |
| qualification provides all the learning and capabilities | | | | Budgeting is picked up in section C, with a |
| needed by finance professionals to take on this | | | | consideration of not only the traditional quantitative |
| increasingly, crucial role and help lead the recovery. | | | | aspects but also the behavioural side to the process. |
| This qualification is made up of nine mandatory | | | | This area shows how the budget environment may be |
| Fundamental papers (three knowledge based | | | | used as powerful motivating tool but can also damage |
| and six skills based) plus five Professional papers. Of | | | | performance and suggests ways to deal with both. |
| these, the F5 paper on performance management | | | | Each of these topics look at the knowledge required |
| accounting, with its own specific microsite, is perhaps | | | | for the particular accounting concepts but more |
| most pertinent in the prevailing climate. | | | | importantly, how it should be applied in the resolution of |
| This paper aims To develop knowledge and skills in | | | | performance management problems. |
| the application of management accounting technique to | | | | Sections D and E epitomise this ethos. The former |
| quantitative and qualitative information for planning, | | | | demands not only the ability to calculate standard |
| decision-making, performance evaluation and | | | | costing and materials mix and yield variance but to |
| control. In essence, the subject gives the | | | | interpret and so use the results in the context of |
| accountant a clear understanding of whether an | | | | business performance. The examiner regards Section |
| organisation is delivering, and more importantly, the | | | | E as the core element of the F5 paper. The section |
| tools to change and fix any issues to keep it on track | | | | affords the accountant the means to appreciate the |
| and make informed choices about what direction it | | | | importance of financial and non-financial data. |
| should follow in the longer term. It enables the | | | | Identifying and understanding how external influences |
| professional to actively manage and create value for | | | | will shape the future performance of the organisation |
| the business. | | | | and so informing its the effective management and |
| The F5 paper overview and Syllabus documents, at | | | | control. |
| the microsite, both paint a comprehensive picture of | | | | The ability of the finance profession to stimulate value |
| the five principal areas of the subject. These are | | | | creation is at the heart of economic recovery and |
| divided into topics A to E and cover Specialist cost | | | | growth; F5 performance management accounting is |
| and management accounting techniques, | | | | too! |