CIMAF2 Area B Self Study Guide Section C: Analysis And Interpretation Of Financial Accounts (35%) Session Component Learning

g outcomes Study Guidance / Tips (duration)

1 (WK 8 60min) Over view of the syllabus Area C 1. Read through the syllabus Area C. 2. Arrange your notes if available. 3. Speak to friends gather useful resources and information related to this syllabus Area.

CIMA Technical Articles

F2 Syllabus Guide Study videos Ask the tutor Questions.

Session Component Learning outcomes (duration)

2 (Wk 8 6 hours)
1(a) Interpret a full range of accounting ratios; 1(b) Discuss the limitations of accounting ratio analysis and analysis based on financial statements.

Study Guidance / Tips

CIMA Technical Articles

Modified DuPont approach

1. Start by identifying the list of accounting ratios require to calculate the business. 2. Understand how these ratios are calculated and how to they are interlinked. 3. Discuss the limitations of these ratios the short comings the story behind the business that cannot be told by the numbers. Top Tip: Choose a company of your interest and do a ratio analysis. Identify other pieces of useful information that may have helped you to make a decision with regards to the performance/position of a company this will address the limitations of the ratios. 1(a,b) Exam questions from F2 Financial Management papers: May-10 Q2 Q3 Nov-10 Q5 May-11 Q7 Nov-11 Q3
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CIMAF2 Area B Self Study Guide Session Component Learning outcomes (duration)
3 (Wk 8-9 11 hours)
2(a) Analyse financial statements in the context of information provided in the accounts and corporate report. 2(b) Evaluate performance and position based on analysis of financial statements. 2(c) Discuss segmental analysis, with inter-firm and international comparisons taking account of possible aggressive or unusual accounting policies and pressures on ethical behaviour. 2(d) Discuss the results of an analysis of financial statements and its limitations.

Study Guidance / Tips

CIMA Technical Articles

Financial Analysis

1. This is about developing the skills further a level up what you acquired from the previous learning outcomes. The learning outcomes requires an ability to be able to calculate the ratios and analyse them contextually i.e. ensure the relevance to the particular scenario. 2. Principle understanding of IFRS8 and issues pertaining to creative accounting and the threats to the ethics of accountants. 2(a,b,c) Exam questions from F2 Financial Management papers: Nov-10 Q7 Mar-11 Q5 Q7 May-11 Q3 Q7 Sep-11 Q7 Nov-11 Q7

OTHER STUDY RESOURCES:

Find all examiners suggested answers here Post exam guides CIMA Publishing Velocity-Student e-magazine Financial Management magazine Chat to other students on CIMA-sphere discussion boards for Management level Please note that the session duration time given for each area is a rough guide based on % of F2 syllabus weightings. Research has shown that students who study a minimum of 11 hours per week are more likely to pass. These timings must be taken into account
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CIMAF2 Area B Self Study Guide

with other personal commitments such as work, family time, recreation etc. Obviously the more hours students can dedicate to studying the higher their chance of success. Please use this as guidance rather than as an exact science of how to study, and please feel free to change it to suit your requirements.

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