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FM exam format (Sept 2026 to June 2027 study guide)
| Section | What you answer | Marks |
|---|---|---|
| A | 15 objective test (OT) questions of 2 marks each | 30 |
| B | 3 OT cases, each with 5 OT questions of 2 marks | 30 |
| C | 2 constructed response questions of 20 marks each | 40 |
| Total | All questions are compulsory | 100 |
- Time: 3 hours, computer-based exam. You also get 10 minutes before the start to read the exam instructions.
- Pass mark: 50 out of 100.
- Provided in the exam: a formulae sheet and tables of discount and annuity factors.
- Section C answers are written in the spreadsheet and word-processing tools inside the exam software.
- Sections A and B can test any part of the syllabus. Section C questions come mainly from working capital management, investment appraisal and business finance.
- The syllabus did not change for September 2026 to June 2027.
What the FM syllabus covers
- A. Financial management function: what a finance manager does and the objectives a company works towards.
- B. Financial management environment: the economy, financial markets, money markets and financial institutions.
- C. Working capital management: inventory, receivables, payables and cash, and how working capital is funded.
- D. Investment appraisal: NPV, IRR, payback and other methods to decide whether a project is worth doing.
- E. Business finance: sources of finance, cost of capital and capital structure.
- F. Business valuations: valuing shares and businesses, and how efficient the market is.
- G. Risk management: foreign currency and interest rate risk and how to hedge them.
- H. Employability and technology skills: using the exam's spreadsheet and word-processing tools well.
Where marks are lost in FM
- Generic theory does not score. In the Time Co business finance question, candidates handled the calculations well. The discussion parts decided who scored high. In the AgeAid question, answers that only defined economy, efficiency and effectiveness got none of the six marks, because they never mentioned AgeAid. If the company is named in the requirement, use its facts. Read the scenario for limits too. Tax relief points earned nothing for a charity the scenario said was tax-exempt. An Equivalent Annual Cost working was wasted when both options ran for the same four years (examiner's report, March/June 2026).
- Investment appraisal basics. Depreciation is not a cash flow. Ignore it and say so in your answer. Common errors were taking only 3 years' depreciation when working out the residual value, and putting the residual value in year 5 instead of year 4. The examining team wants you fully comfortable with the exam spreadsheet, such as the NPV function and copying formulae across rows, and suggests practice on the ACCA Practice Platform (examiner's report, March/June 2026).
- Small slips in cost of capital and valuation. Use the ex-div price, not the cum-div price, for the cost of preference shares, and do not deduct tax from it. Compound a money-market rate to annualise it. Do not pro-rate it. Put growth into the dividend valuation model as d0 x (1+g). For redeemable loan notes, include the redemption premium and discount at the debt holders' required return, not the coupon rate. In P/E valuation, use profit for the year, not retained earnings (examiner's report, March/June 2026).
- Theory OTs and repeated points. Many candidates got OT questions wrong on the weaknesses of payback, money-market functions compared with financial intermediaries, the efficient market hypothesis and noise traders. In written parts, repeating similar ideas about retaining cash earned no extra marks, while two developed points were enough. A reason stated without discussion scored at most 1 of its 2 marks (examiner's report, March/June 2026).
How our FM 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 answers 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 FM in September 2027?
June 2027 is the last sitting of the current FM exam. From September 2027, FM becomes E4 Finance and Investment in ACCA's new structure. If you pass FM by June 2027, the pass carries across as credit.
