Tackling the DipFM projects
| by Pippa Riley 24 Feb 2002 Diploma in Financial Management Relevant to All Projects |
|
Administration of the Projects
The precise details for the administration of the projects, the format of the
assignments and the deadlines for submission are set out in an article in Issue
50 of the Diploma Newsletter, and are not therefore repeated here. You should
ensure that you are aware of the deadline you are working to, as the Project
titles will be withdrawn after the date has passed, and new titles issued for
the next submission period.
What order shall I do them in?
It is worth noting that it is not compulsory to submit a project within a particular
period, and you do not have to submit the projects for Modules A and B simultaneously.
If the project title issued is not on a topic with which you feel comfortable,
or covers an area on which you are unlikely to do yourself justice, wait until
the next titles are issued six months hence.
It is entirely up to you whether you complete the project for a Module before or after the exam, or whether you pass the two exams and then move on to complete the projects once the exam pressure is alleviated. You could even do the work for the exam and the project for one of the Modules at the same time, so that you become completely absorbed in the syllabus and the subject matter. You will probably find that as you work through a syllabus and read around it, you will become more confident with it and for this reason, it might be sensible to complete and submit the project after the exam, rather than before.
The assignment requirements
You should expect to produce about 2,500 words in answer to each of the assignments.
This means that you will have to produce a total approaching 5,000 words for
each project as a whole. The assignments included in the pilot projects differ
considerably in terms of their requirements: all four of them consist of a number
of separate requirements, meaning that the assignment can be broken down into
a number of component parts. The total word count will be inclusive of appendices
and tables, but excluding references and bibliography.
How do I pass the Projects?
The pass mark for each project is 50%, as it is for the exams. The Pilot projects
indicate that 50 marks will be allocated to each assignment, giving a total
for the project of 100%. You do not have to attain half marks for each assignment
separately: you must obtain at least 50% across the two of them. If you get
less than 50% of the available marks for one assignment but more for the other,
and the total is 50 or more, you will pass the project as a whole.
In order to pass an entire Module, you must obtain at least 50% in the exam and at least 50% in the project, and whichever of those two elements you pass first will be credited to you until you pass the other one.
Format for submission
Your projects must be typed for submission, and you must also submit a disk.
This is to enable the examiners to apply software to your answers to detect
evidence of collusion or cheating, for example evidence that different writing
styles have been used.
Subject area 1: Interpretation of Financial Statements
The pilot project assignment includes a large extract from the 1999 accounts
of Dorling Kindersley, the educational publishing company. You are required
to use the accounts to critically evaluate a quotation from the Chairman’s
Statement, and to examine the company’s performance, using various accounting
ratios.
The Examiner has stated his intention to continue to use a supplement of a ‘live’ set of accounts in this way, and it will probably be a feature of all future assignments. Possibly related to this is the fact that he has expressed a desire to reflect current thinking in accounting, and it is likely that these two intentions will dovetail together, perhaps by the use of sets of accounts which illustrate new concepts or areas of discussion.
The Examiner expects evidence of a great degree of thought and a high standard of analysis in the assignment and you should expect to analyse figures to a far greater degree of detail than is allowed in the restricted timespan of the exam. You do after all have a much longer period of time in which to think about them. A maximum of only 30% of the marks will be allowed for computation in the assignment, the remainder being allocated to analysis, discussion and critical evaluation or appraisal.
Subject area 2: Performance Management
The Examiner for Performance Management has taken a fairly robust approach to
the Project. He has said that the assignment will:
- require additional reading;
- be used to evolve the syllabus, in terms of requiring students to consider topics which are at the cutting edge of Performance Management and hence less likely to be examined in the traditional way;
- relate issues from the syllabus to realistic business situations;
- include both financial and non financial data;
- over time cover a wide variety of organisations.
Although the format of the pilot is fairly straightforward, requiring the production of two separate reports about data on the operating details of a production department and potential improvements in terms of new manufacturing systems, the Examiner has said that he may amend that format. In particular the assignment could consist of either one or two case studies.
Subject area 3: Financial Strategy
The Examiner has made it clear that he is adopting a case study approach, and
that the scenario and data supplied in the assignment could extend to 6 or 7
pages. The pilot is based on data relating to one company and the words used
in the four parts of the requirement include:
- analyse
- evaluate
- recommend
There will not necessarily be an absolute answer to the questions set: they could be open-ended and require some calculations and, more importantly, the evaluation of the data given.
If you are confronted with an assignment providing you with a mass of data, as this one seems likely to do, it is important that you take the time to absorb the data and analyse it in depth, probably over a period of several days. You will have to immerse yourself in the scenario and become totally familiar with it before you can consider approaching the answer.
Subject area 4: Risk Management
The pilot for Risk Management effectively contains two separate questions, one
on corporate governance (for 37.5 of the available 50 marks) and the other on
hedging. Each of these two sections in turn contains smaller parts.
The Examiner has, however, said that he is likely to adopt a case study approach, and it seems that future assignments could provide far more information than the single page of the Pilot and be centred on just one scenario. The Examiner has indicated that the assignments will contain a mix of practical and theoretical issues, relating to both large and small organisations. The assignments will:
- require you to demonstrate an understanding of the main areas of responsibility for corporate governance and the implications and limitations of the applications of the various Codes and Guidelines
- require you to demonstrate an understanding of financial risk management techniques.
This may well be an assignment which requires you to engage in further research, especially on recent developments in corporate governance.
What skills will I be expected to use?
There are several key skills assessed by the projects which cannot necessarily
be tested in traditional exams. The main ones are:
- analysis skills
- research skills
- report writing and presentation
Analysis
The ‘questions’ in the projects, which are better described as scenarios
or case studies, will be much longer than traditional exam questions. You will
not be able just to read and then answer them, and indeed you are not expected
to do. You have at least two months or so to consider them. You must ensure
that you take the time to analyse two key areas:
1 The wording of the requirement
A quick glance through the pilot projects will show you how many different phrases
are used. They include:
- critically evaluate
- examine in detail
- explain and demonstrate or illustrate
- discuss
- write a report… summarising and explaining
- analyse
- set out a recommended course of action...
- highlight the difficulties
It is vital that you appreciate exactly what it is you are required to do.
2 The content of the assignment
You will be presented with a lot of information and a wealth of detail. It is
vital that you think carefully about everything that you are told in the assignment,
as there is unlikely to be superfluous information. For example, as part of
your analysis and research calculate any ratios that may be slightly useful,
not just those which you will definitely use in your answer.
Further research
Since some of the topics covered by the projects will be on the fringes of the
syllabus, you may find yourself having to carry out research over and above
that which is required by your studies for the exams.
For example the pilot project for Interpretation of Financial Statements requires you to discuss the problems of recognition of revenues and expenditures. Although this issue is of course covered in the BPP Study Text, you may want to carry out some further reading and find practical examples to help you to develop a full answer.
Similarly, the Pilot Project for Risk Management asks you to highlight the problems facing smaller quoted companies in adhering to corporate governance procedures. In order to do justice to this part of the requirement, you would probably need to research some practical examples of such companies.
The research will not be unreasonably demanding, and will probably involve some library or internet work, but you should be prepared to give the necessary time to it.
Report writing and presentation
The 2,500 word answers expected for the answers to the assignments may be longer
than anything you have had to write before, and you may have to present some
of your answer in a tabular or other graphical form.
The key to writing a good report or other lengthy document is planning. Do not just launch into writing your answer: list out the points you are going to make and arrange them into order. You may need to produce a number of drafts before you are satisfied with the end result, but at least the fact that you have to word process your answers should make this easier.
It is important that you structure any report in a logical and professional way: think back to the style of reports that you have produced or seen at work and follow the format used. Try to use headings and sub headings to break the report down into easily readable sections, and remember to head it up with the names of the recipient and author, the subject matter and the date. Think carefully about who you are addressing in your report or other form of answer, and adopt a suitable tone. For example are you writing to the managing director, to colleagues or a client? This could make all the difference to the tone and style of your answer.
Study materials
ACCA’s approved publisher for the DipFM, BPP Publishing, has published
a Workbook on the Project elements of the Modules. Contact BPP on tel: +44 (0)20
8740 2211 for further information or to place an order, or visit their website,
www.bpp.com.
Summary
In conclusion, the requirement to produce a project may seem very daunting to
you, especially as you may not have engaged in this type of work before. Do
not despair: with a little dedication, thought and preparation you should find
that completion of the projects is a fulfilling experience.