Career Path

6. Strategic (Detailed Study Guide)

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FBT

A The business organisation and

its external environment

  1. The purpose and types of business organisation a) Define ‘business organisations’ and explain why they are formed.[K] b) Describe common features of business organisations.[K] c) Describe how business organisations differ.[K] d) List the sectors in which business organisations operate.[K] e) Identify the different types of business organisation and their main characteristics:[K] i) Commercial ii) Not-for-profit iii) Public sector iv) Non-governmental organisations v) Cooperatives.
  2. Stakeholders in business organisations a) Define stakeholders and explain the agency relationship and how it may vary in different types of business organisations.[K] b) Define internal, connected and external stakeholders and explain their impact on the organisation.[K]

c) Identify the main stakeholder groups and the objectives of each group.[K] d) Explain how the different stakeholder groups interact and how their objectives may conflict with one another.[K] e) Compare the power and interest of various stakeholder groups and how their needs should be accounted for, such as under the Mendelow matrix.[K] 3. Political and legal factors affecting business a) Explain how the political system and government policy affect the organisation.[K] b) Describe the sources of legal authority, including supra-national bodies, national and regional governments.[K] c) Identify the principles of data protection and security.[K] d) Describe the legal responsibility of the individual and the organisation in relation to data protection and security.[K] 4. Macroeconomic factors a) Define macroeconomic policy and explain its objectives.[K] b) Explain the main determinants of the level of business activity in the economy and how variations in the level of business activity affect individuals, households and businesses.[K] c) Explain the impact of economic issues on the individual, the household and the business: [K] i) Inflation ii) Unemployment iii) Economic growth iv) International payments disequilibrium. d) Describe the main types of economic policy that may be implemented by government and supra-national bodies to maximise economic welfare.[K] e) Describe the impact of fiscal and monetary policy measures on the individual, the household and businesses.[K]

  1. Microeconomic factors a) Define the concept of demand and supply for goods and services.[K] b) Explain elasticity of demand and the impact of substitute and complementary goods.[K] c) Explain the economic behaviour of costs in the short and long-term.[K] d) Describe perfect competition, oligopoly, monopolistic competition and monopoly.[K]
  2. Social and demographic factors a) Explain the medium and long-term effects of social and demographic trends on business outcomes and the economy.[K] b) Identify and explain the measures that governments may take in response to the medium and long-term impact of demographic change.[K]
  3. Technological factors a) Explain the potential effects of technological change on organisational structure and strategy:[K] i) Downsizing ii) Delayering iii) Outsourcing. b) Describe the impact of information technology and information systems development on business processes and the changing role of the accountant in business as a result of technological advances.[K]
  4. Environmental and sustainability factors a) List ways in which the business can affect or be affected by its physical environment.[K] b) Describe ways in which businesses can operate more sustainably to limit damage to the environment.[K]

c) Identify the benefits of economic sustainability to stakeholders.[K] 9. Competitive factors a) Identify a business’s strengths, weaknesses, opportunities and threats (SWOT) in a market and the main sources of competitive advantage.[K]

b) Identify the main elements within Porter’s value chain and explain the meaning of a value network.[K] c) Explain the factors or forces that influence the level of competitiveness in an industry or sector using Porter’s five forces model.[K] d) Describe the key activities of an organisation that affect its competitiveness:[K]

B Organisational structure, culture, governance and sustainability

  1. The formal and informal business organisation a) Explain the informal organisation and its relationship with the formal organisation.[K] b) Describe the impact of the informal organisation on the business.[K]
  2. Business organisational structure a) Explain the different ways in which formal organisations may be structured [K]: i) Entrepreneurial ii) Functional iii) Matrix iv) Divisional (geographical, by product, or by customer type) v) Boundaryless: (virtual, hollow or modular). b) Explain basic organisational structure concepts:[K]

i) Separation of ownership and management ii) Separation of direction and management iii) Span of control and scalar chain iv) Tall and flat organisations v) Outsourcing and offshoring vi) Shared services approach. c) Explain the characteristics of the strategic, tactical and operational levels in the organisation in the context of Anthony’s hierarchy.[K] d) Explain centralisation and decentralisation and list their advantages and disadvantages.[K] e) Describe the roles and functions of the main departments in a business organisation:[K] i) Research and development ii) Purchasing iii) Production iv) Service operations v) Marketing vi) Administration vii) Finance. f) Explain the role of marketing in an organisation: [K] i) Definition of marketing ii) Marketing mix iii) Relationship of the marketing plan to the strategic plan 3. Organisational culture a) Define organisational culture.[K] b) Describe the factors that shape the culture of the organisation.[K] c) Explain the contribution made by writers on culture (Schein, Handy and Hofstede).[K] 4. Governance in business organisations a) Explain the purposes of business committees.[K] b) Describe the types of committee used by business organisations.[K] c) List the advantages and disadvantages of committees.[K] d) Explain the roles of the Chair and Secretary of a committee.[K] e) Explain the agency concept in relation to corporate governance.[K] f) Briefly explain the main recommendations of best practice in effective corporate governance:[K] i) Executive and non-executive directors ii) Remuneration committees iii) Audit committees iv) Public oversight. 5. Sustainable business practices a) Define social responsibility and explain its importance in contemporary organisations.[K] b) Explain the responsibility of organisations to maintain appropriate standards of corporate social responsibility.[K] c) Explain how organisations take account of their social responsibility objectives through analysis of the needs of internal, connected and external stakeholders.[K] d) Identify the social and environmental responsibilities of business organisations to internal, connected and external stakeholders.[K] C Business functions, regulation and technology 6. The relationship between accounting and other business functions

a) Explain the relationship between accounting and other key functions within the business such as procurement, production and marketing.[K] b) Explain financial considerations in production and production planning.[K] c) Identify the financial issues associated with marketing.[S] d) Identify the financial costs and benefits of effective service provision.[S] 2. Accounting and finance functions within business organisations a) Explain the contribution of the accounting function to the formulation, implementation, and control of the organisation’s policies, procedures, and performance.[K] b) Describe the main financial accounting functions in business:[K]

i) Recording financial information ii) Codifying and processing financial information iii) Preparing financial statements. c) Describe the main management accounting functions in business:[K]

i) Recording and analysing costs and revenues ii) Providing management accounting information for decision-making iii) Planning and preparing budgets and exercising budgetary control. d) Describe the main finance and treasury functions:[K] i) Calculating and mitigating business tax liabilities ii) Evaluating and obtaining finance iii) Managing working capital iv) Treasury and risk management. e) Describe the main audit and assurance roles in business:[K] i) Internal audit ii) External audit. 3. Regulation and financial crime a) Explain basic legal requirements in relation to retaining and submitting proper records and preparing and auditing financial reports.[K] b) Explain the broad consequences of failing to comply with the legal requirements for maintaining and filing accounting records.[K] c) Explain how the international accountancy profession regulates itself through the establishment of reporting standards and their monitoring.[K] d) Explain the circumstances under which fraud is likely to arise.[K] e) Identify different types of fraud in the organisation.[K] f) Explain the implications of fraud for the organisation.[K] g) Explain the role and duties of individual managers in the fraud detection and prevention process.[K] h) Explain why it is important to adhere to policies and procedures for handling clients’ money.[K] i) Define the term money laundering.[K] j) Give examples of recognised offences under money laundering regulations.[K] k) Identify methods for detecting, preventing and reporting money laundering.[K]

  1. Financial information provided by business a) Explain the various business purposes for which the following financial information is required:[K]

i) The statement of profit or loss ii) The statement of financial position iii) The statement of cash flows iv) Sustainability and integrated reports. b) Describe the main purposes of the following types of management accounting reports:[K] i) Cost schedules ii) Budgets iii) Variance reports. 5. Financial systems and technology a) Identify an organisation’s system requirements in relation to the objectives and policies of the organisation.[S] b) Describe the main financial systems used within an organisation:[S]

i) Purchases and sales invoicing ii) Payroll iii) Credit control iv) Cash and working capital management. c) Identify weaknesses, potential for error and inefficiencies in accounting systems.[S]

d) Identify business uses of computers and IT software applications:[S] i) Spreadsheet applications ii) Database systems iii) Accounting packages. 6. Internal controls a) Explain internal control and internal checks.[K] b) Explain the importance of internal financial controls in an organisation.[K] c) Describe the responsibilities of management for internal financial control.[K] d) Describe the features of effective internal financial control procedures in an organisation, including authorisation.[K] e) Describe general and application systems controls in business.[K] 7. The impact of advances in technology a) Describe cloud computing as a capability in accountancy and how it creates benefits for the organisation.[K] b) Explain how automation and artificial intelligence (AI) in accounting systems can affect the role and effectiveness of accountants.[K] c) Describe how the application of big data and data analytics can improve the effectiveness of accountancy and audit.[K] d) Describe the key features and applications of Blockchain technology and distributed ledgers in accountancy.[K] e) Define cyber security and identify the key risks to data that cyber-attacks bring.[K] f) Identify and describe features for protecting the security of IT systems and software within business.[S] D Leadership and management 8. Leadership, management and supervision a) Define leadership, management and supervision and explain the distinction between these terms.[K] b) Explain the nature of management:[K] i) Classical theories of management - Fayol, Taylor ii) The functions of a manager – Mintzberg, Drucker. c) Explain the areas of managerial authority and responsibility.[K]

d) Explain approaches to leadership with reference to the theories of Adair, Fiedler and Bennis.[K]

e) Describe leadership styles using the models of Ashridge, and Blake and Mouton.[K] 2. Individual and group behaviour in business organisations a) Describe the main characteristics of individual and group behaviour.[K] b) Explain the contributions of individuals and groups to organisational success.[K] c) Identify individual and group approaches to work.[K] 3. Team formation, development and management a) Explain the differences between a group and a team.[K] b) Explain the purposes of a team.[K] c) Explain the role of the manager in building the team and developing individuals within the team with reference to Belbin’s team roles theory and Tuckman’s theory of team development.[K] d) List the characteristics of effective and ineffective teams.[K] e) Describe tools and techniques that can be used to build the team and improve team effectiveness.[K] 4. Motivating individuals and teams a) Define motivation and explain its importance to the organisation, teams and individuals.[K] b) Explain theories of motivation: Maslow, Herzberg and McGregor.[K] c) Explain how reward systems can be designed and implemented to motivate teams and individuals.[K] 5. Learning and training at work a) Explain the importance and benefits of learning and development in the workplace.[K] b) Describe the learning process: Honey and Mumford, Kolb.[K] c) Describe the training and development process: identifying needs, setting objectives, programme design, delivery and validation.[K] d) Explain the terms ‘training’, ‘development’ and ‘education’ and the characteristics of each.[K] 6. Review and appraisal of individual performance a) Define performance appraisal and describe its purpose.[K] b) Describe the performance appraisal process.[K] c) Explain the benefits of and barriers to effective appraisal.[K] E. Personal effectiveness and communication in business 7. Personal effectiveness a) Explain the importance of effective time management.[K] b) Describe the barriers to effective time management and how they may be overcome.[K] c) Describe the role of technology in improving personal effectiveness.[S]

  1. Consequences of ineffectiveness at work a) Identify the main ways in which people and teams can be ineffective at work.[S] b) Explain how individual or team ineffectiveness can affect organisational performance.[K]
  2. Competence frameworks and personal development a) Explain how a competence framework underpins professional development needs.[S]

b) Explain how personal and continuous professional development can increase personal effectiveness at work.[S] c) Explain the purpose and benefits of coaching, mentoring and counselling in promoting employee effectiveness.[K] d) Describe how a personal development plan should be formulated, implemented, monitored and reviewed by the individual.[S] 4. Sources of conflict and techniques for conflict resolution a) Identify situations where conflict at work can arise.[S] b) Describe how conflict can affect personal and organisational performance.[S] c) Identify ways in which conflict can be managed.[S] 5. Communicating in business a) Describe the methods and patterns of communication used in the organisation.[K] b) Explain how the type of information differs and the purposes for which it is applied at different levels of the organisation: strategic, tactical and operational.[K] c) Identify the consequences of ineffective communication.[K] d) Describe the attributes of good quality information and effective communication.[K] e) Describe the barriers to effective communication and identify practical steps that may be taken to overcome them.[K] F Professional ethics 6. Fundamental principles of ethical behaviour a) Define business ethics and explain the importance of ethics to the organisation and to the individual.[K] b) Describe and demonstrate the following principles from the IFAC (IESBA) code of ethics, using examples.[K] i) Integrity ii) Objectivity iii) Professional competence iv) Confidentiality v) Professional behaviour. c) Describe organisational values which promote ethical behaviour using examples.[K] i) Openness ii) Trust iii) Honesty iv) Respect v) Empowerment vi) Accountability. d) Explain the concept of acting in the public interest.[K] 7. The role of regulatory and professional bodies in promoting ethical and professional standards in the accountancy profession

a) Explain the purpose of international and organisational codes of ethics and codes of conduct, IFAC (IESBA), ACCA etc.[K] b) Describe how professional bodies and regulators promote ethical awareness and prevent or punish illegal or unethical behaviour.[K] c) Identify the factors that distinguish a profession from other types of occupation.[K] d) Explain the role of the accountant in promoting ethical behaviour.[K] e) Explain when and to whom illegal, or unethical conduct by anyone within or connected to the organisation should be reported.[K]

  1. Corporate codes of ethics a) Define corporate codes of ethics.[K] b) Describe the typical contents of a corporate code of ethics.[K] c) Explain the benefits of a corporate code of ethics to the organisation and its employees.[K]
  2. Ethical conflicts and dilemmas a) Describe situations where ethical conflicts can arise.[K] b) Identify the main threats to ethical behaviour.[K] c) Describe situations at work where ethical dilemmas may be faced.[S] d) List the main safeguards against ethical threats and dilemmas.[K]

SBR-INT

A Fundamental ethical and professional principles

  1. Professional and ethical behaviour in corporate reporting a) Appraise and discuss the importance of ethical and professional behaviour in complying with accounting and sustainability standards and corporate reporting requirements in contemporary business scenarios.[3] b) Assess and discuss the consequences of unethical behaviour by management in carrying out their responsibility for the preparation of corporate reports.[3] B The financial reporting framework

  2. The applications, strengths and weaknesses of an accounting framework a) Discuss the importance of the Conceptual Framework for Financial Reporting in underpinning the production of accounting standards.[3] b) Discuss the objectives, principles and limitations of financial reporting including presentation and disclosure of information.[3] c) Discuss the qualitative characteristics of useful financial information including disclosure.[3] d) Evaluate the principles of recognition, derecognition and measurement, including measurement uncertainty and materiality.[3] e) Critically discuss and apply the definitions of the elements of financial statements and the reporting of items in the statement of profit or loss and other comprehensive income.[3] C Reporting the financial performance of a range of entities

  3. Revenue a) Discuss and apply the criteria that must be met before an entity can recognise revenue.[3] b) Discuss and apply the criteria for recognition of contract revenue and contract costs including contract modifications.[3] c) Evaluate and apply the recognition and measurement of revenue including performance obligations satisfied over time, sale with a right of return, repurchase agreements, consignment arrangements, warranties, variable consideration, principal versus agent considerations and non-refundable upfront fees.[3]

  4. Non-current assets a) Evaluate and apply the recognition, derecognition and measurement of noncurrent assets including impairments and revaluations.[3] b) Evaluate and apply the accounting requirements for the classification and measurement of non-current assets held for sale.[3] c) Evaluate and apply the accounting treatment of investment properties including classification, recognition, measurement and change of use.[3] d) Evaluate and apply the accounting treatment of intangible assets including the criteria for recognition and measurement subsequent to acquisition.[3] e) Evaluate and apply the accounting treatment for borrowing costs.[2]

  5. Financial instruments a) Evaluate and apply the initial recognition and measurement of financial instruments including the business model test.[3] b) Explain and apply the subsequent measurement of financial assets and financial liabilities including the fair value option and financial liability modifications.[3] c) Discuss and apply the derecognition of financial assets and financial liabilities.[2] d) Discuss and apply the reclassification of financial assets.[2] e) Account for derivative financial instruments.[2] f) Explain and apply the qualifying criteria for hedge accounting and account for fair value hedges and cash flow hedges including hedge effectiveness.[2] g) Discuss and apply the general approach to impairment of financial instruments including the basis for estimating expected credit losses.[2] h) Discuss the implications of a significant increase in credit risk.[2] i) Discuss and apply the treatment of purchased or originated credit impaired financial assets.[2]

  6. Leases a) Evaluate and apply the lessee accounting requirements for leases including the identification of a lease and the measurement of the right-of-use asset and lease liability.[3] b) Evaluate and apply the accounting for leases by lessors including accounting for subleases.[3] c) Evaluate and apply the circumstances where there may be re-measurement of the lease liability.[3] d) Justify and apply the separation of the components of a lease contract into lease and non-lease elements.[3] e) Evaluate and apply the recognition exemptions under the current leasing standard.[3] f) Discuss and apply the accounting for sale and leaseback transactions.[3]

  7. Employee benefits a) Evaluate and apply the accounting treatment of short term and long-term employee benefits, termination benefits and defined contribution and defined benefit plans.[3] b) Account for gains and losses on settlements and curtailments.[2] c) Account for the “Asset Ceiling” test and the reporting of actuarial gains and losses.[2]

  8. Income taxes a) Evaluate and apply the recognition and measurement of current and deferred tax liabilities and assets.[3] b) Discuss and apply the treatment of deferred taxation on a business combination.[2]

  9. Provisions, contingencies and events after the reporting period a) Evaluate and apply the recognition, derecognition and measurement of provisions, contingent liabilities and contingent assets including onerous contracts, environmental provisions and restructuring provisions.[3] b) Evaluate and apply the accounting for events after the reporting period.[3]

  10. Share-based payment a) Evaluate and apply the recognition and measurement of share-based payment transactions.[3]

  11. Fair Value Measurement a) Evaluate and apply the principles of ‘fair value’ measurement and ‘active market’.[3] b) Evaluate and apply the ‘fair value hierarchy’ including valuation techniques.[3] c) Justify and apply the principles of highest and best use, most advantageous and principal market.[3]

  12. Presentation and disclosure in financial statements a) Discuss and apply the principles relating to the format, content and presentation of the statement of profit or loss and other comprehensive income.[3] b) Discuss and apply the principles relating to the format, content and presentation of the statement of financial position, including requirements for classifying items as current or non-current.[3] c) Discuss and apply the principles relating to the format, content and presentation of the statement of cash flows.[3] d) Evaluate and apply the principles relating to aggregation, disaggregation and offsetting when preparing financial statements and disclosure notes.[3] e) Discuss and apply the principles which maximise the usefulness of disclosure notes.[3] f) Discuss and apply the principles relating to the disclosure of management-defined performance measures.[3]

  13. Other reporting issues a) Evaluate and apply the accounting for, and disclosure of, government grants and other forms of government assistance.[3] b) Appraise and apply the judgements made in selecting and applying accounting policies, accounting for changes in estimates and reflecting corrections of prior period errors.[3] c) Discuss and apply the principles relating to going concern.[3] d) Identify related parties and assess the implications of related party relationships in the preparation of corporate reports.[2] e) Discuss the key differences in accounting treatment between full IFRS Accounting Standards and the IFRS for SMEs® Standard, including the simplifications introduced by the IFRS for SMEs Standard.[2] D Financial statements of groups of entities

  14. Group accounting including statements of cash flows a) Evaluate and apply the principles behind determining whether a business combination has occurred including the control principle.[3]

b) Evaluate and apply the acquisition method of accounting for a business combination including identifying an acquirer and the principles in determining the cost of a business combination.[3] c) Justify the recognition and measurement criteria used for identifying acquired assets and liabilities including contingent amounts and intangible assets.[3] d) Evaluate and apply the accounting for goodwill and non-controlling interests.[3] e) Evaluate and apply the accounting principles relating to a business combination achieved in stages.[3] f) Determine and apply appropriate procedures to be used in preparing consolidated financial statements.[3] g) Evaluate and apply the implications of changes in ownership interest and loss of control or significant influence.[3] h) Appraise the impact on group financial statements where activities have been discontinued.[3] i) Discuss and apply the treatment of a subsidiary which has been acquired exclusively with a view to subsequent disposal.[2] j) Discuss and apply accounting for group companies in the separate financial statements of the parent company. [2] k) Identify and explain when a subsidiary can apply reduced disclosures in its separate financial statements. [1] l) Identify and explain the circumstances when a group may claim an exemption from the preparation of consolidated financial statements.[2] m) Discuss and apply the principles relating to the format, content and presentation of the consolidated statement of cash flows.[3] 2. Associates and joint arrangements a) Discuss and apply the principle of significant influence and apply the equity method of accounting for associates.[3] b) Discuss and apply the application of the joint control principle and apply to the classification of joint arrangements.[3] 3. Foreign transactions and entities a) Evaluate and apply the translation of foreign currency amounts and transactions into the functional currency and the presentational currency.[3] b) Evaluate and apply the principles relating to the consolidation of foreign operations, including subsidiaries, associates and joint arrangements, and their disposal.[3] E Interpret financial and nonfinancial information for different stakeholders 1 Analysis and interpretation of financial and non-financial information and measurement of performance a) Evaluate the relevant indicators of financial and non-financial performance from a range of stakeholder perspectives. Indicators include earnings per share, management-defined performance measures and other additional performance measures.[3] b) Evaluate and apply the principles relating to the disclosure of reportable segments and discuss the usefulness of operating segment disclosures to stakeholders.[3] c) Appraise the factors which affect the quality of financial and non-financial information for investors, including management commentary and disclosures produced in accordance with IFRS Accounting Standards and IFRS Sustainability Disclosure Standards.[3] F The impact of changes and potential changes in accounting regulation 1 Discussion of issues in financial reporting a) Appraise the accounting implications of the adoption of new accounting standards.[2] b) Evaluate and apply one or more existing accounting standards to contemporary issues such as:  digital assets  natural disasters  climate change  global events.[3] c) Regarding the IFRS Sustainability Disclosure Standards:  outline the scope, conceptual foundations, objectives, core content, general requirements and principles in relation to judgements, uncertainties and errors;  assess the usefulness of corporate disclosures of climate-related risks and opportunities; and  discuss the key differences between the IFRS Sustainability Disclosure Standards and the European Sustainability Reporting Standards. [2] G Employability and technology skills 4. Use computer technology to efficiently access and manipulate relevant information. 5. Work on relevant response options, using available functions and technology, as would be required in the workplace. 6. Navigate windows and computer screens to create and amend responses to exam requirements, using the appropriate tools. 7. Present data and information effectively, using the appropriate tools.

SBL

A Leadership

  1. Qualities of leadership a) Explain the role of effective leadership and identify the key leadership traits effective in the successful formulation and implementation of strategy and change management.[3] b) Apply the concepts of entrepreneurship and ‘intrapreuneurship’ to exploit strategic opportunities and to innovate successfully.[3] c) Apply, in the context of organisation governance and leadership qualities, the key ethical and professional values underpinning governance.[3]
  2. Leadership and organisational culture a) Discuss the importance of leadership in defining and managing organisational culture.[3] b) Advise on the style of leadership appropriate to manage strategic change.[2] c) Analyse the culture of an organisation, to recommend suitable changes, using appropriate models such as the cultural web.[3] d) Assess the impact of culture on organisational purpose and strategy. [3}
  3. Professionalism, ethical codes and the public interest a) Critically evaluate the concept of responsible leadership and the creation of public value by acting in the public interest.[3] b) Assess management behaviour against the codes of ethics relevant to accounting professionals including the IESBA (IFAC) or professional body codes.[3] c) Analyse the reasons for conflicts of interest and ethical conflicts in organisations and recommend resolutions.[3] d) Assess the nature and impact of different ethical threats and recommend appropriate safeguards to prevent or mitigate such threats.[3] e) Recommend best practice for reducing and combating fraud, bribery and corruption to increase public confidence and trust in organisations.[3] B Governance and sustainability
  4. Agency a) Discuss the nature of the principal-agent relationship in the context of governance.[3] b) Analyse the issues connected with the separation of ownership of an organisation from control over its activities.[3]
  5. Stakeholder analysis and social responsibility a) Discuss, and critically assess, the concept of stakeholder power and interest using the Mendelow model and apply this to strategy and governance.[3] b) Evaluate the stakeholders’ roles, claims and interests in an organisation and how they may conflict and be resolved.[3] c) Explain social responsibility in the context of governance and sustainability for the public good.[2]
  6. Governance scope and approaches a) Analyse and discuss the role and influence of institutional investors in governance systems and structures.[2]

b) Compare rules versus principles-based approaches to governance and advise when they may each be appropriate.[3] c) Discuss different models of organisational ownership that influence different governance regimes (family firms versus joint stock company-based models) and explain how they work in practice.[2] d) Apply the general principles of the International Corporate Governance Network (ICGN)’s Global Governance Principles to organisations’ corporate governance.[2] 4. Reporting to stakeholders a) Discuss the factors that determine organisational policies on reporting to stakeholders, including stakeholder power and interests.[3] b) Assess the role and value of integrated reporting and evaluate the issues concerning accounting for sustainability.[2] c) Advise on the guiding principles, the typical content elements and the six capitals of an integrated report, and discuss the usefulness of this information to stakeholders.[3] d) Describe and assess the social and environmental impacts that economic activity can have (in terms of social and environmental ‘footprints’ and environmental reporting).[3] e) Describe the main features of internal management systems for underpinning environmental and sustainability accounting such as EMAS and ISO 14000.[2] f) Examine how the audit of integrated reports can provide adequate assurance of the relevance and reliability of to stakeholders.[2] 5. The board of directors a) Assess the duties and roles of directors and functions of the board (including setting a responsible ‘tone’ from the top and being accountable for the performance and impact of the organisation):[3]

b) Evaluate the case for and against unitary and two-tier board structures.[3] c) Describe and assess the purposes, responsibilities and performance of NonExecutive Directors (NEDs).[3] d) Describe and assess the importance of induction, performance appraisal and the continuing professional development of directors on the board.[3] e) Explain the meaning of ‘diversity’ and critically evaluate issues relating to diversity on the board of directors.[3] f) Assess the importance, roles, purposes and accountabilities of the main board committees in respect of effective governance:[3] g) Describe and assess the general principles of remunerating directors and modifying directors’ behaviour to align with stakeholder interests: [3] h) Explain and analyse the regulatory, strategic and labour market issues associated with determining directors’ remuneration.[3] 6. Public sector governance a) Discuss public sector, private sector, charitable status and non-governmental (NGO and quasi-NGOs) forms of organisation, including agency relationships, stakeholders’ objectives and performance criteria.[2]

b) Assess and evaluate the strategic objectives, leadership and governance arrangements that are specific to public sector organisations as contrasted with the private sector.[3] c) Explain democratic control, political influence and policy implementation in public sector organisations.[3] d) Discuss obligations of public sector organisations to meet the economy, effectiveness and efficiency (the 3 E’s) criteria and promote public value.[3] C Strategy

  1. Concepts of strategy a) Explain the fundamental importance of strategy and strategic decisions within different organisational contexts.[2] b) Apply the Johnson, Scholes and Whittington model of strategic management –strategic analysis, strategic choices and strategic implementation.[3]
  2. Environmental issues a) Assess the macro-environment of an organisation using appropriate models such as PESTEL.[3] b) Assess the implications of strategic drift.[3] c) Evaluate the external key drivers of change likely to affect the structure of a sector or market.[3] d) Apply Porter’s Diamond to explore the influence of national competitiveness on the strategic position of an organisation.[3] e) Assess scenarios reflecting different assumptions about the future environment of an organisation.[3]
  3. Competitive forces a) Evaluate the sources of competition in an industry or sector using Porter’s Five Forces framework.[3] b) Analyse customers and markets including market segmentation.[2] c) Apply Porter’s value chain to assist organisations to identify value adding activities in order to create and sustain competitive advantage.[2] d) Advise on the role and influence of value networks.[3] e) Evaluate the opportunities and threats posed by the competitive environment of an organisation.[2]
  4. The internal resources, capabilities and competences of an organisation a) Identify and evaluate an organisation’s strategic capability, its threshold resources, threshold competences, unique resources and core competences.[3] b) Discuss the capabilities required to sustain competitive advantage.[2] c) Discuss the contribution of organisational knowledge to the strategic capability of an organisation.[2] d) Identify and evaluate the strengths and weaknesses of an organisation and formulate an appropriate SWOT analysis.[2]
  5. Strategic choices a) Assess and advise on the different strategic options available to an organisation.[3] b) Assess the opportunities and potential problems of pursuing different strategies of product/market diversification from a national, multinational and global perspective.[3]

c) Advise on how the 7 P’s, price-based strategies, differentiation and lock-in can help an organisation sustain its competitive advantage.[3] d) Apply the Boston Consulting Group (BCG) and public sector portfolio matrix models to assist organisations in managing their portfolios.[3] e) Recommend generic development directions using the Ansoff growth vector matrix.[2] f) Assess how internal development, business combinations, strategic alliances and partnering can be used to achieve business growth.[3] D Risk

  1. Identification, assessment and measurement of risk a) Discuss the relationship between organisational strategy and risk management strategy.[3]

b) Apply the enterprise risk management (ERM) approach to risk management and for establishing risk management systems.[2] c) Identify and evaluate key risks, including environmental and climate related risks, and their impact on organisations and projects.[3] d) Distinguish between strategic and operational risks.[2] e) Assess attitudes towards risk and risk appetite and how this can affect risk policy.[2] f) Discuss the dynamic nature of risk and the ways in which risk varies in relation to the size, structure, industry, sector and development of an organisation.[2]

g) Assess the severity and probability of risk events.[2] i) Explain and evaluate the concepts of related and correlated risk factors.[3] 2. Managing, monitoring and mitigating risk a) Explain and assess the role of a risk manager.[3] b) Evaluate a risk register and use heat maps when identifying or monitoring risk.[3] c) Evaluate the concept of embedding risk in an organisation’s culture and values.[3] d) Explain and analyse the concepts of spreading and diversifying risk and when this would be appropriate.[2] e) Advise on risk management strategies, including the use of the TARA model.[3] f) Explain and assess the benefits of incurring or accepting some risk as part of competitively managing an organisation referring to the ‘as low as reasonably practical’ (ALARP) principle.[3] g) Apply the concept of assurance mapping to modern risk management using the ‘four lines of defence’ [3] E Technology and data analytics 3. Cloud, mobile and smart technology a) Discuss, from a strategic perspective, the need to explore opportunities for adopting new technologies such as cloud, mobile and smart technology within an organisation.[3] b) Discuss key benefits and risks of cloud, mobile and smart technology.[2]

c) Assess and advise on using the cloud as an alternative to owned hardware and software technology to support organisation information system needs.[3] 2. Big data and data analytics a) Discuss how information technology and data analysis can effectively be used to inform and implement organisational strategy.[3] b) Describe big data and discuss the opportunities and threats big data presents to organisations.[2] c) Identify and analyse relevant data for strategic decisions on new product developments, marketing and pricing.[3] 3. Machine learning, AI and robotics a) Explain the potential benefits of using artificial intelligence (AI), robotics and other forms of machine learning to support strategic decisions and the pursuit of corporate objectives.[2] b) Assess the risk, control and ethical implications of using AI, robotics and other forms of machine learning.[3] 4. E- business: value chain a) Assess the organisation’s approach to delivering e-business.[3] b) Assess and advise on the potential application of information technology to support e- business.[3] c) Explore the characteristics of e-marketing using the 6 I’s of interactivity, intelligence, individualisation, integration, industry structure and independence of location.[2] d) Assess the importance of online branding in e-marketing and compare it with traditional branding.[2] e) Explore different methods of acquiring and managing suppliers and customers through exploiting e-business technologies.[2] 5. IT systems security and control a) Discuss, from a strategic perspective, the continuing need for effective information systems control within an organisation.[3] b) Assess and advise on the adequacy of information technology and systems security controls for an organisation.[3] c) Evaluate and recommend ways to promote cyber security.[3] d) Evaluate and recommend improvements or changes to controls over the safeguard of information technology assets, to ensure the organisation meets its business objectives.[3] F Organisational control and audit 6. Management and internal control systems a) Evaluate the key features of effective internal control systems such as those included in the COSO framework.[3] b) Assess whether information flows to management are adequate for the purpose of managing internal control and risk.[3] c) Evaluate the effectiveness and potential weaknesses of internal control systems.[3] d) Discuss and advise on the importance of sound internal control and legal and regulatory compliance and the consequences to an organisation of poor control and non-compliance.[2]

e) Recommend new internal control systems or changes to the components of existing systems to help prevent fraud, error, waste or harmful environmental impacts.[2] 2. Audit and compliance a) Examine the need for an internal audit function in the light of regulatory and organisational requirements.[3] b) Justify the importance of auditor independence in all client-auditor situations (including internal audit) and the role of internal audit in compliance.[3] c) Justify the importance of having an effective internal audit committee overseeing the internal audit function.[2] d) Assess the appropriate responses to auditors’ recommendations.[3] 3. Internal control and management reporting a) Justify the need for reports on internal controls to shareholders.[3] b) Discuss the typical contents of a report on internal control and internal audit including environmental and sustainability audits.[2] c) Assess how internal controls underpin and provide information for reliable financial and sustainable reporting.[3] G Finance in planning and decision-making 4. Finance transformation a) Discuss how advances in technology are transforming the finance sector and the role and structure of the finance function within organisations.[2] b) Evaluate alternative structures for the finance function using business partnering, outsourcing and shared or global business services.[3] 5. Financial analysis and decision-making techniques a) Determine the overall investment requirements of the organisation.[2] b) Assess and advise on alternative sources of short and long-term finance available to the organisation to support strategy and operations.[3] c) Review and justify decisions to select or abandon competing investments. applying suitable investment appraisal techniques.[3]

d) Justify strategic and operational decisions taking into account risk and uncertainty.[3] e) Assess the broad financial reporting and tax implications of taking alternative strategic or investment decisions.[2] f) Assess organisational performance and position using appropriate performance management techniques, key performance indicators (KPIs) and ratios.[3] 3. Cost and management accounting a) Discuss, from a strategic perspective, the continuing need for effective cost management and control systems within organisations.[3] b) Evaluate methods of forecasting, budgeting, standard costing and variance analysis in support of strategic planning and decision making.[3]

H Enabling success, managing

change and project management

  1. Enabling success: organising a) Advise on how organisational structure and internal relationships can be reorganised to deliver a selected strategy.[3] b) Advise on the implications of collaborative working and partnering, including franchising, process outsourcing, shared services and global business services.[3]

  2. Enabling success: disruptive technology a) Identify and assess the potential impact of disruptive technologies such as Fintech, including cryptocurrencies.[3] b) Assess the impact of new products, processes, service developments and innovation in supporting organisation strategy.[2]

  3. Enabling success: talent management a) Discuss how talent management can contribute to supporting organisational strategy.[3] b) Analyse opportunities for organisational improvement using the four view POPIT (people, organisation, processes and information technology) model.[3]

  4. Enabling success: performance excellence a) Apply the Baldrige model for world class organisations to achieve and maintain business performance excellence.[3] b) Assess and advise on how an organisation can be empowered to reach its strategic goals, improve its results and be more competitive, focusing on its critical success factors (CSF).[3]

  5. Managing strategic change a) Evaluate the effectiveness of current organisational processes.[3) b) Evaluate different types of strategic change and assess their implications.[2] c) Establish an appropriate scope and focus for organisational process change using Harmon’s process-strategy matrix.[3] d) Assess and advise on possible redesign options for improving the current processes of an organisation.[3] e) Recommend a process redesign methodology for an organisation.[2] f) Manage change in the organisation using models such as Lewin’s three stage model.[2] g) Assess implications of change in an organisation using Balogun and Hope Hailey’s contextual features.[3]

  6. Leading and managing projects a) Determine the distinguishing features of projects and the constraints they operate in.[2] b) Discuss the implications of the triple constraints of scope, time and cost.[2] c) Prepare a business case document and project initiation document.[2] d) Analyse, assess and classify the costs and benefits of a project investment.[3] e) Establish the role and responsibilities of the project manager and the project sponsor.[2]

f) Assess the importance of developing a project plan and its key elements.[3]

g) Monitor and control project risks and slippages, recommending improvements.[2] h) Discuss the benefits of a postimplementation and a post-project review.[2] I Professional skills

  1. Communication a) Inform concisely, objectively, and unambiguously, while being sensitive to cultural differences, using appropriate media and technology.[3] b) Persuade using compelling and logical arguments demonstrating the ability to counter argue when appropriate.[3] c) Clarify and simplify complex issues to convey relevant information in a way that adopts an appropriate tone and is easily understood by the intended audience.[3]
  2. Commercial acumen a) Demonstrate awareness of organisational and wider external factors affecting the work of an individual or a team in contributing to the wider organisational objectives.[3] b) Use judgement to identify key issues in determining how to address or resolve problems and in proposing and recommending the solutions to be implemented.[3] c) Show insight and perception in understanding work-related and organisational issues, including the management of conflict, demonstrating acumen in arriving at appropriate solutions or outcomes.[3]
  3. Analysis a) Investigate relevant information from a wide range of sources, using a variety of analytical techniques to establish the reasons and causes of problems, or to identify opportunities or solutions.[3] b) Enquire of individuals or analyse appropriate data sources to obtain suitable evidence to corroborate or dispute existing beliefs or opinion and come to appropriate conclusions.[3] c) Consider information, evidence and findings carefully, reflecting on their implications and how they can be used in the interests of the department and wider organisational goals.[3]
  4. Scepticism a) Probe deeply into the underlying reasons for issues and problems, beyond what is immediately apparent from the usual sources and opinions available.[3] b) Question facts, opinions and assertions, by seeking justifications and obtaining sufficient evidence for their support and acceptance.[3] c) Challenge information presented or decisions made, where this is clearly justified, in a professional and courteous manner; in the wider professional, ethical, organisational, or public interest.[3]
  5. Evaluation a) Assess and use professional judgement when considering organisational issues, problems or when making decisions; taking into account the implications of such decisions on the organisation and those affected.[3]

b) Estimate trends or make reasoned forecasts of the implications of external and internal factors on the organisation, or of the outcomes of decisions available to the organisation.[3] c) Appraise facts, opinions and findings objectively, with a view to balancing the costs, risks, benefits and opportunities, before making or recommending solutions or decisions.[3]

J Other employability and digital

skills

  1. Use computer technology to efficiently access and manipulate relevant information.
  2. Work on relevant response options, using available functions and technology, as would be required in the workplace.
  3. Navigate windows and computer screens to create and amend responses to exam requirements, using the appropriate tools.
  4. Present data and information effectively, using the appropriate tools.

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