CA INTERMEDIATE FMSM (FINANCIAL MANAGEMENT AND STRATEGIC MANAGEMENT) OLD VS NEW

The Institute of Chartered Accountants of India (ICAI) has implemented  a new scheme of education and training.  The ICAI has revised the whole CA Course- few sections have been removed, some have been merged together, and some new additions  have been made.  Talking about changes made to CA Intermediate papers- 

1. “Enterprise Information and Strategic Management”(EIS-SM) & “Financial Management and Economics for Finance”(FM-ECO), these two papers have been transformed into one, now called as “Financial Management and Strategic Management”(FMSM). Both FM and SM comprise of 50 marks each.
2.  Enterprise Information and Economics for Finance have now been removed from CA Intermediate syllabus.
3. FM Chapter wise changes-

Earlier there were 10 chapters, now there are 9. 

CHAPTERS	ADDITIONS	DELETION
Scope and objectives of FM	None	None
Types of financing	“Contemporary sources of funding” topic	Yankee bond, Samurai bond and Bulldog bond theory topics.
Financial analysis and planning- ratio analysis	None	None
Cost of capital	Practical question 7	Effective interest rate  method (EIR)
Financing decisions- Capital structure	Practical question 9,10,11
Investment decisions	Practical question 14
Risk analysis in capital budgeting		Chapter removed
Dividend decisions	“Share buyback” concept and practical question 8,9	Graham and Dodd’s model, Linster’s model and practical question 1,
10)Working capital management		Inventory management topic & Illustration 12,13,14.

• SM Chapter wise changes-

Earlier there were 8 chapters in SM. Now they have been consolidated into 5. Chapter 6- “Functional level strategies” is entirely deleted.

A lot of adjustments have been made and topics have been shuffled.

There are minor additions and deletions in the syllabus.

CHAPTERS	ADDITION	DELETION	SHIFTED FROM OTHER CHAPTERS
Introduction to SM	-Value system -Network of relationships between 3 levels.	– Business policy – SM in government  and NPO	FROM CHAPTER 3 -Strategic intent (vision, mission, goals, objectives)
Strategic analysis: External Environment	-Strategy and Business Environment – Micro and macro environment -PESTLE – Internationalization of business -International environment -Understanding Product and industry	-Managing  linkages -Competitive intelligence – TOWS matrix	FROM CHAPTER 5 -Porter’s 5 forces model
Strategic analysis: Internal Environment	-Understanding key stakeholders -Strategic drivers	-Strategic decision making	FROM CHAPTER 2 Strategic group mapping -Core competency – SWOT analysis – Competitive advantage
Strategic Choices			FROM CHAPTER 2 -Strategic options- Ansoff, BCG, ADL,GE.
Strategy Implementation and Evaluation	– Strategic change through different transformation		FROM CHAPTER 3 -SM stages -Chapter 7 consolidated into this chapter – Chapter 8 also consolidated but excluding some  topics- BPR and Benchmarking

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