Read the mind of an AFM marker - Q1

Oct 28, 2026

Upload by Mabel

Advanced Financial Management (AFM) specimen exam Question 1 marking guidance that reveals what a marker looks for when assessing scripts. The material explains the requirement to prepare a board report and use numerical techniques to calculate cost of capital, including how discussion points and calculation parts are marked. It then reviews specimen marked answers for three candidates, outlining how marks and marker comments are allocated and summarizing technical and professional strengths that support improvement.

LanguageEnglish

CategoryExam

FormatPDF

Pages20

Reading Time50 min

AccessFree to download

Introduction

Question 1

Observations on the requirement

Specimen exam marked answers

Notes on candidate one’s answer to Q1

ADVANCED FINANCIAL MANAGEMENT (AFM) Read the mind of an AFM marker SPECIMEN EXAM Q1 Contents INTRODUCTION 3 QUESTION 1 4 Observations on the requirement 4 Specimen exam marked answers 5 Question 1 candidate one 5 Notes on candidate one’s answer to Q1 10 Question 1 candidate two 11 Notes on candidate two’s answer to Q1 15 Question 1 candidate three 16 Notes on candidate three’s answer to Q1 19 READ THE MIND OF AN AFM MARKER – Q1 2 Introduction I am a member of the team who marks Advanced Financial Management. This article is designed to give you, the candidate, an insight into my mind, so that you can better understand what a marker will be looking for when it comes to marking your Advanced Financial Management script. Insight into a marker’s thinking – appreciating what we are trained to look for, what we award marks for, the reasons why marks may not be awarded – will help you fulfil your potential and gain the necessary marks to pass. It will help you appreciate the points that will attract marks so that you can better assess your answers when practicing questions. This article uses three candidates’ answers to Question 1 from the AFM specimen exam. To support your reading of this article, you should refer to the specimen exam on the ACCA Practice Platform. You may also find it interesting to refer to the published answers for the specimen exam, noting the differences and comparing the length and style to the candidates’ answers seen in this article. It’s important to remember that you don’t need to replicate the published answer to achieve a pass. You can access the answers on the ACCA Practice Platform. ACCESS THE ACCA PRACTICE PLATFORM HERE READ THE MIND OF AN AFM MARKER – Q1 3 Question 1 Observations on the requirement ACCESS THE ACCA PRACTICE PLATFORM HERE Question 1 contains a number of requirements, as is usually the case with a 50-mark question, and requires the preparation of a report to the board of directors. It also requires the use of numerical techniques to calculate costs of capital and to discuss the findings from these calculations. For the discussion elements, each relevant point will generally be awarded 1 mark, although a well-discussed point can be worth 2 marks. Remember, however, that to discuss means to consider the pros and cons of an issue. For the calculations in part (b), each part of the calculation will generally be awarded 1 or 2 marks, depending on complexity. A good answer to part (a) would look at each defence strategy in turn and separately consider the feasibility and the effectiveness of such a strategy. A good answer to parts (b)(i)-(iii) would take a methodical approach with clear and easy to follow workings. A good answer to part (b)(iv) would discuss the outcome of the calculations in (b)(i)-(iii) and what this would mean for both the shareholders and the bond holders. It should also include the key assumptions made in the earlier calculations. A good answer to part (c) would include the arguments for and against the approach taken to employee remuneration and the possible issues arising from it. Professional marks would be obtained from producing answers which fully address the requirements. Specimen exam marked answers Question 1 candidate one Roll your cursor over each numbered note for the marks awarded and marker’s comments to appear in the right side panel: 1/2 Marks awarded and comments: READ THE MIND OF AN AFM MARKER – Q1 5 Specimen exam marked answers Question 1 candidate one Roll your cursor over each numbered note for the marks awarded and marker’s comments to appear in the right side panel: 2/2 6 12 13 14 15 16 Marks awarded and comments: READ THE MIND OF AN AFM MARKER – Q1 6 Specimen exam marked answers Question 1 candidate one Roll your cursor over each of the highlighted cells in the spreadsheet to view the formulas that were used. Roll your cursor over each numbe

FAQs

How is professional performance evaluated in the candidate review?

The notes evaluate professional skills such as communication, analysis and evaluation, scepticism, and commercial acumen, with scores summarized before the overall total.

Oct 28, 2026

Upload by Mabel