BPPs guide to the CIMA 2015

syllabus changes
A handy guide outlining the changes CIMA are making to the
syllabus from 2015 and our advice on the steps you should take
to ensure you are in the best position.

Introduction
by Steve Malpass,
Head of CIMA Programme

Passing professional exams

is a significant challenge, and one
that needs innovative solutions.
We are constantly evolving to
ensure we stay one step ahead of the
professional education market - so
please rest assured that BPP will
provide you with exactly what you
need to confidently pass your newstyle exams in 2015 and beyond.
So, five years have nearly gone by and the next new CIMA syllabus is
on the horizon. This is going to directly impact the majority of you as
your studies progress through 2014 into 2015.
Here at BPP we recognise how important it is for you to be able to
plot your way through the qualification in a way that meets all your
needs, so were going to provide all the information, help and support
you need to ensure your route to Chartered Management Accountant
status is as smooth as possible.
At this relatively early stage, we think you will benefit by having an
easy to digest overview of the new syllabus, as well as some simple to
follow advice on how best to direct your studies during 2014.
You will see that the syllabus content itself isnt changing vastly,
although there are quite a few topics moving between papers. The
most significant change is around the exams themselves, and how
your learning will be assessed. You will see that CIMA are taking big
steps to bring their assessment style up to date and, as in todays
office, using a PC is replacing pen and paper.

How are the papers changing in the

new syllabus?
The three levels and the three pillars are remaining, as these have
proven to be a success in the 2010 syllabus. However, CIMA have
recognised two areas that could be improved and taken action
accordingly.
1. The current names of the papers dont really tell you what they
cover clearly enough so youll see a move away from the
convention whereby a paper name is derived purely from the pillar
and level it is in. The new names will be much more meaningful in
the wider business environment.

The most obvious change here is the absence of T4 Part B i.e. the
T4 exam that used to represent the final hurdle in the qualification,
bar your Practical Experience Requirements. You will see within the
detailed assessment changes that this has been replaced with an
integrated Strategic Level Case Study exam (which is pretty much
what T4 used to be if you think about it).
Please note that CIMA Certificate Level is unaffected by any of these
changes.

2. As youll see in the detailed syllabus changes, CIMA have taken

steps to make the progression up each pillar more defined, with
core topics being examined within a single pillar, as opposed to
moving between them, which used to happen at Strategic Level.

Member of CIMA
Practical Experience
Strategic Level
P3: Risk Management

F3: Financial Strategy

CIMA Adv Diploma in Management Accounting

Management Level
E2: Project & Relationship Management

P2: Advanced Management Accounting

F2: Advanced Financial Reporting

CIMA Diploma in Management Accounting

Operational Level
E1: Organisational Management

P1: Management Accounting

F1: Financial Reporting & Taxation

CIMA Certificate in Business Accounting

C1: FMA

C2: FFA

C3: FBM

C4: FBE

C5: FBL

Practical Experience

E3: Strategic Management

What does this mean for the papers

Ill be studying in 2015?
Heres CIMAs description of the new E1 paper

E1 Paper
A
B
C
D
E
F

Introduction to Organisations

New section, partly from E1A, as well as covering

structure, regulation and professional behaviour

Managing the Finance Function

New section on the purpose of the finance function,

and how it supports other areas and strategies.

Managing Technology and Information

Stays the same, but introduces big data and
digitisation (20% to 15%)

Operations Management

Stays the same, from E1C (20% to 15%)

Marketing

Stays the same, but introduces the role of big data in

marketing (20% to 15%)

Managing Human Resources

From E1E (20% to 15%)

25%
15%
15%

What does this mean compared to the old one?

15%
15%

B
C
D

Strategic Management and

Assessing the Global Environment
Some of this is from E1A;
otherwise stays the same as E2A

The Human Aspect of the Organisation

Follows on from E1F, and comes partly from E1E,

and from E2C.

Managing Relationships

Old topic E2C now covered in E2B & C

(overall weighting similar)

Managing Change Through Projects

Comes from E2B; level of detail reduced
(to be covered in CPD)

Interacting with the Organisations Environment

Stays the same, considers ethical issues,
same weighting

30%

20%
20%
20%

20%

Evaluation of Strategic Position and

Strategic Options

30%

Leading Change

20%

Implementing Strategy

15%

The Role of Information Systems in

Organisational Strategy

15%

Stays the same, moves from E3B, same weighting

Stays the same, moves from 30% to 15%

New topic combined from areas previously covered in

E1B and P3D - but expanded and updated

Coming in

Brand new topics around the purpose of the finance

function, and the impact of big data on areas like
marketing and IT.

E2 syllabus emphasises a holistic, integrated approach to managing

organisations, from external and internal perspectives. It builds on the
understanding of organisational structuring gained from E1 and is centred
on the concept of strategy and how organisational strategy can be
implemented through people, projects, processes and relationships. It
provides the basis for developing further insights into how to formulate
and implement organisational strategy, which is covered in E3.

What does this mean compared to the old one?

Going out

Some of the detail around project management is

leaving the syllabus altogether.

Coming in

Emerging markets, political, economic and social factors

coming from E1, as is some of the human capital section.

Heres CIMAs description of the new E3 paper

Stays the same, moves from E2C, same weighting

Emerging markets, political, economic and social factors

moving to E2, as is some of the human capital section.

Heres CIMAs description of the new E2 paper

E3 Paper
A

Going out

15%

E2 Paper
A

E1 focuses on the structuring of organisations. It covers the structure

and principles underpinning the operational functions of the
organisation, their efficient management and effective interaction
in enabling the organisation to achieve its strategic objectives.
It lays the foundation for gaining further insight into both the
immediate operating environment and long-term strategic future of
organisations, which are covered in E2 and E3.

The E3 syllabus builds on the insights gained from E1 and E2 about

how organisations effectively implement their structures by aligning
their structures, people, process, projects and relationships. E3
aims to develop the skills and abilities of the strategic leaders of
organisations, enabling them to create the vision and direction for the
growth and long-term sustainable success of the organisation. This
involves successfully managing and leading change within the process
of strategy formulation and implementation.

What does this mean compared to the old one?

Going out

Nothing significant has been removed from this paper.

Coming in

More on ethics, plus expanded coverage of the role of

information systems in operational strategy (some of
which used to be in P3).

Heres CIMAs description of the new P1 paper

P1 Paper
A
B
C
D

Cost Accounting Systems

Stays the same, same weighting

Budgeting

Budgeting has been consolidated from P1B and P2C;

overall weighting comparable

Short-Term Decision Making

From P2A, but with the focus on short-term

product and pricing decisions

Dealing with Risk and Uncertainty

Stays the same, same weighting as P1D

30%
25%
30%
15%

What does this mean compared to the old one?

Cost Planning and Analysis for Competitive

Advantage

25%

Control and Performance Measurement of

Responsibility Centres

30%

Long-Term Decision Making

30%

Expanded coverage from P2D, 20% to 30%

Generally comes from P1C and P2A; 25% to 30%

Management Control and Risk

New area of risk introduced in management level to link between risk at operational and strategic levels

Going out

Project appraisal (going to P2), and working capital

management (going to F1).

Coming in

More on budgeting (from P2) and lots on short-term

decision-making like relevant costing, products and
prices (also from P2).

Heres CIMAs description of the new P2 paper

P2 Paper
Stays the same, from P2B, 30% to 25%

P1 stresses the importance of costs and the drivers of costs in the

production, analysis and use of information for decision making
in organisations. The time focus of P1 is the short-term. It covers
budgeting as a means of short-term planning to execute the strategy
of organisations. In addition it provides competencies on how to
analyse information on costs, volumes and prices to take short-term
decisions on products and services and to develop an understanding
on the impact of risk to these decisions. P1 provides the foundation for
cost management and the long-term decisions covered in P2.

15%

Focusing primarily on the long-term, P2 builds on the insights of

costs and their drivers (from P1) to provide the competencies needed
to analyse, plan and manage costs to support the implementation
of the organisations strategy. It shows how to manage and control
the performance of various units of the organisation in line with
both short-term budgets and long-term strategy. Finally, P2 covers
investment decision making and the risks associated with such
decisions. It provides the basis for developing deeper understanding
of various types of risk affecting the strategy and operations of
organisations (covered in P3).

What does this mean compared to the old one?

Some budgeting (to P1) and anything relating to shortterm decision-making like relevant costing, products
and prices (also to P1).

Coming in

Long-term project appraisal (from P1) and a new

section on risk (to plug previous progression gap on
risk between P1 and P3).

Heres CIMAs description of the new P3 paper

P3 Paper
Identification, Classification and
Evaluation of Risk

Going out

Internal Controls to Manage Risk

20%

P3 shows how to identify, evaluate and manage various risks that

could adversely affect the implementation of the organisations
strategy. It provides the competencies required to analyse, evaluate
and apply the techniques, processes and internal control systems
required to manage risk. This insight is then used to show how
to manage the risks associated with both cash flows and capital
investment decisions two important areas of organisational life for
which the finance function is responsible.

Managing Risks Associated with Cash Flows

20%

What does this mean compared to the old one?

Managing Risks Associated with

Capital Investment Decisions

Partly drawn from P3B, but elevates ethics and board

responsibilities

Responses to Strategic Risk

Consolidation of risk from other pillars, emphasising

ethics and governance
Draws content from P3A-C

Generally covers the same content as P3D

This content has transferred from F3

20%

20%

20%

Going out

A small part on risk and control in information systems to E1.

Coming in

More on ethics and board responsibilities, more on

strategic risk from other pillars, plus specific section
on capital investment risks (from F3).

Heres CIMAs description of the new F1 paper

F1 Paper
A

Regulatory Environment for Financial

Reporting and Corporate Governance

10%

Financial Accounting and Reporting

45%

Management of Working Capital, Cash and

Sources of Short-Term Finance

20%

Fundamentals of Business Taxation

25%

Updated coverage, from F1B (15% to 10%)

Stays the same, from F1C (60% to 45%)

Come from P1E, same coverage product and

pricing decisions
Same coverage

F1 covers the regulation and preparation of financial statements and

how the information contained in them can be used. It provides the
competencies required to produce financial statements for both
individual entities and groups using appropriate international financial
reporting standards. It also gives insight into how to effectively source
and manage cash and working capital which are essential for both
the survival and success of organisations. The final part focuses
on the basic principles and application of business taxation. The
competencies gained from F1 form the basis for developing further
insights into producing and analysing complex group accounts
(covered in F2) and formulating and implementing financial strategy
(covered in F3).

What does this mean compared to the old one?

Sources of Long-Term Finance

15%

Financial Reporting

60%

Analysis of Financial Performance and Position

25%

Stays the same, incorporates F2A and B (35% to 60%)

Stays the same (35% to 25%)

Nothing significant has been removed from this paper.

Coming in

Working capital management (from P1), and bits on

developments in external reporting (from F2).

Heres CIMAs description of the new F2 paper

F2 Paper
Updated coverage, from F3B

Going out

F2 builds on the competencies gained from F1. It covers how

to effectively source the long-term finance required to fund the
operations of organisations, particularly their capital investments.
It also deepens the coverage of financial reporting to more complex
aspects of group accounting and analyses the rules governing the
recognition and measurement of various elements of the financial
statements. Finally it shows how to analyse financial statements to
provide insights about the financial performance and position of the
organisation over time and in comparison with others.

What does this mean compared to the old one?

Formulation of Financial Strategy

B
C

Same coverage, same %, F3A

Includes GRI Sustainability Reporting Framework and
IIRC guidance

Financing and Dividend Decisions

Same coverage, 30% to 35%

Corporate Finance

Similar coverage, but investment appraisal moved to P

pillar (45% to 40%)

Developments in external reporting that relate to

standards covered in F1 will now be examined in F1.

Coming in

Sources of long-term finance (from F3).

Heres CIMAs description of the new F3 paper

F3 Paper
A

Going out

25%

35%
40%

F3 focuses on the formulation and implementation of financial

strategy to support the overall strategy of the organisation. Using
insights gained from F1 and F2, it provides the competencies to
evaluate the financing requirements of organisations and the relative
merits of alternative sources of finance to meet these requirements.
Finally it develops the competencies required to value investment
opportunities including the valuation of corporate entities for mergers,
acquisitions and divestments.

What does this mean compared to the old one?

Going out

Sources of long-term finance (to F2),

investment appraisal (to P papers).

Coming in

New topic on sustainability reporting.

How will the exams change?

Integrated case study at strategic level to replace T4B as
the capstone assessment
Strategic Level
Heres some more information on the two different kinds of exams

Integrated Case Study (ICS)

E3 (OT)

P3 (OT)

F3 (OT)

New Objective Test (OT) exams

On PC
90 minutes long

Management Level

Short-questions, including multi-choice, multi-response, data

entry, fill-in-the-gaps, etc.

Integrated Case Study (ICS)

E2 (OT)

P2 (OT)

F2 (OT)

Can be sat at any time immediate results

New Integrated Case Study (ICS) exams

Operational Level

On PC
Three hours long

Integrated Case Study (ICS)

E1 (OT)

P1 (OT)

F1 (OT)

Computer based objective tests to test knowledge and

understanding with only a bit of application. The case
studies will test application, analysis and evaluation.

Long questions similar to what we currently see in the exams

Questions will cover individual papers total 100 marks
Will be available in quarterly exam sittings (Feb/May/Aug/Nov)
although the very first sitting will be in March 2015,
results 3-4 weeks later (tbc)
Pre-seen case study based at all levels

What are the most significant changes to the exams?

By far the biggest change that will impact you in the new syllabus is
the style and format of the exams that you will sit. You will see below
that theres three significant changes:
1. All exams will now be PC-based
2. More exams will be on demand so you can sit them when you
want
3. Case study/pre-seen style exams are being introduced to ALL
levels of the qualification
Each paper will have its own exam as in the current syllabus, but it
will be a computer-based objective test (OT) exam, similar to what
has been used for many years at Certificate Level, but designed and
structured to assess higher levels of understanding so these are
NOT just going to be multi-choice exams!
As well as this each level will have its own integrated case study (ICS)
exam so, one exam, based around a case study, that will include
questions going across all three papers within a level. This exam will
also be on a PC.
This means we are about to see the end of written exams in the CIMA
qualification.

Progression Rules
The new syllabus and exam structure is pretty straightforward in
terms of the rules around progressing through the qualification.
1. Must pass/be exempt from all OT exams in a level before can sit
that levels ICS exam
2. You must pass the Operational Level ICS before moving onto the
Management Level OT exams and you cannot sit Management
Level ICS until passed Operational Level ICS
3. Cannot sit more than one ICS in any sitting

What are the transition rules if Im already studying?

Lots of students will be part way through the qualification at the end
of 2014. There are some rules around what this means in terms of the
exams youll need to sit in the new syllabus.
The good news here is that any papers passed in the current syllabus
do not need to be taken again in 2015. Regardless of your level our
advice here is similar overall - try to pass as many papers as you can.
A sensible target is to at least complete the level you are on by the
end of the year (so you avoid having to sit the new Integrated Case
Study exam for the level). Put even more simply - try to pass as many
papers as you can in the current syllabus!

And finally...which papers should I study in

the second half of 2014?
This will depend on where you are in the qualification when you get your May 2014 results in July. The following three tables provide detailed
advice, based around how many papers you have left to sit in a particular level.

Operational Level
What if I have

What should I do in 2nd half of 2014?

Why is this a good idea for me?

one paper left to

sit in Nov 2014?

Definitely sit this paper and think about a

Management Level one too

If you pass then you wont have to do the new ICS exam for Operational
Level. Also benefit from studying a Management Level paper within the
current (very well understood) syllabus

two papers left to

sit in Nov 2014?

Sit them both in the 2nd half

Passing them both means you wont have to do the new ICS exam for
Operational Level, just start on new Management Level

three papers left

to sit in Nov 2014?

Do all three if you can! If not then follow

usual route

Passing all three would mean you bypass the ICS exam. If three is too
many then make the most of the current syllabus and study two

What if I have

What should I do in 2nd half of 2014?

Why is this a good idea for me?

one paper left to

sit in Nov 2014?

Definitely sit this

If you pass then you wont have to do the new ICS exam for Management
Level. Also benefit from studying a Management Level paper within the
current (very well understood) syllabus

two papers left to

sit in Nov 2014?

Sit them both in the 2nd half

Passing them both means you wont have to do the new ICS exam for
Management Level, just start on new Strategic Level

three papers left

to sit in Nov 2014?

Do all three if you can! If not then follow

usual route

Passing all three would mean you bypass the ICS exam. If three is too
many then make the most of the current syllabus and study two

Management Level

Strategic Level and T4

What if I have

What should I do in 2nd half of 2014?

Why is this a good idea for me?

one paper left to

sit in Nov 2014?

Definitely sit this

This will just leave you with the ICS exam for Strategic Level in the new
syllabus

two papers left to

sit in Nov 2014?

Sit them both in the 2nd half

This will just leave you with the ICS exam for Strategic Level in the new
syllabus

three papers left

to sit in Nov 2014?

Sit them in 2nd half

Benefit from studying Strategic Level within the current (very well
understood) syllabus

just T4 to go

Sit it in Aug/Sept 14

Avoids the alternative of having to sit new ICS exam for Strategic Level in
2015 plus two chances under same pre-seen
(i.e. can resit in Nov 14 if needs be)