Chat on WhatsApp
AFM exam format (Sept 2026 to June 2027 study guide)
| Part | What it contains | Marks |
|---|---|---|
| Section A | One compulsory case study drawing on at least two of syllabus areas A to E. It asks for a set format, for example a report to the board of directors. All professional skills are examined here. | 50 (40 technical + 10 professional skills) |
| Section B | Two compulsory scenario questions. Each mixes calculations with narrative. None is purely narrative. | 2 x 25 (20 technical + 5 professional skills each) |
| Total | 80 technical + 20 professional skills | 100 |
| Pass mark | Same as every ACCA exam | 50 |
| Time | Computer-based exam | 3 hours 15 minutes |
ACCA gives you a formulae sheet and maths tables in the exam. Since the September 2024 session the formulae sheet has included a rearranged Modigliani and Miller proposition 2 formula. Every AFM exam has questions on syllabus areas B and E. Any other topic can come up in either section.
What the AFM syllabus covers
- A. Role of the senior financial adviser in the multinational organisation: advising the board on financial strategy.
- B. Advanced investment appraisal: tested in every exam.
- C. Acquisitions and mergers: valuing targets and judging deals.
- D. Corporate reconstruction and re-organisation: restructuring, divestments, buy-ins and buy-outs.
- E. Treasury and advanced risk management techniques: hedging and managing financial risk, tested in every exam.
- F. Professional skills: communication, analysis and evaluation, scepticism and commercial acumen.
- G. Employability and technology skills: working in the word processor and spreadsheet response areas.
Where marks are lost in AFM
- Currency futures hedging. In the Section A case (Pittu Co), many candidates did not round the number of contracts to a whole number. Some tried to use basis to work out a lock-in rate when the forecast September spot rate and the closing futures rate were already given. Others spent time on immaterial over- or under-hedging, or ignored the initial margin or did not convert it into $. The examiners say hedging will always be examined. Work through ACCA's recently updated technical article on foreign currency futures before your mocks. (examiner's report, March/June 2026)
- Valuation technique. In Colmcille Co, candidates used the book value of debt instead of its market value, discounted at the wrong rate, left out the redemption premium, misread the divisional beta data and did not carry their divisional asset beta into the free cash flow valuation. Many skipped the easy asset-based valuation. In Trimpley Co, many could not value equity using a multiple of free cash flow to equity, and added synergies as a one-off amount instead of an annual figure. Sense-check every answer. A low beta for a risky division should make you stop and look again. (examiner's report, March/June 2026)
- Scepticism and commercial acumen. In Pittu Co and Trimpley Co, candidates often scored well on communication and on analysis and evaluation but did not earn many scepticism and commercial acumen marks, especially where the answer was underdeveloped. In Colmcille Co most showed commercial acumen, but few challenged the calculations. Question your own numbers. An NPV rests on many assumptions that could be wrong, so say which ones. Keep the introduction brief, use sub-headings and end with a short conclusion. (examiner's report, March/June 2026)
- Copying the scenario and loose definitions. Information repeated from the scenario earns nothing unless you analyse or evaluate it. In Colmcille Co a significant number of candidates copied scenario text as their discussion, and many part (a) answers were very brief. In Trimpley Co part (a), worth 6 marks, markers looked for about six points, and a significant minority confused a management buy-in with a buy-out and scored few marks, if any. Keep going when early calculations go badly. In Pittu Co, candidates who kept going were often still able to achieve a good pass mark. (examiner's report, March/June 2026)
How our AFM mocks work
- Pick your plan: Every Chapter Test Series (a test for every chapter and 2 full mock exams), Part-wise Test Series (5 part tests and 2 full tests), Full Syllabus Mock Tests (2 full tests) or Every Chapter Series + Mentor. All questions are original, written by our faculty in the current exam pattern, not ACCA past papers.
- You attempt each mock under timed conditions and upload your answers.
- Our faculty check your script within 48 hours of upload. You get marks for each question and comments on what cost you marks.
- If you have doubts on your checked mock, our faculty answer them.
- On the Every Chapter Series + Mentor plan, a mentor builds a week-by-week plan to your sitting and reviews your mock results with you.
What happens to AFM in September 2027?
June 2027 is the last sitting of the current AFM exam. From September 2027 ACCA moves to a new structure, and an AFM pass carries across as credit for SCF Corporate Finance Professional. The new structure needs only one option at Strategic Professional, against two now.
