P1 - For Academics

CIMA Professional Qualification
P1 Syllabus Overview
Created by: Global CGMA University and Academic

Center of Excellence
What is the Center of Excellence (COE) about?
We attract, inspire and engage the Establish consistent global strategy & performance for
next generation of CIMA members academic relations that compliments country efforts
and CGMAs by increasing

Provide partnership & support
awareness among academics and
university students through
Develop best practices & tools
identification of best practices,
training, resources and Align priorities & interests
communications, working in
partnership with the regions. Develop operational efficiency
Global CGMA University and Academic COE

Summary of the Performance pillar - 2019 syllabus
P3: Risk Management What is this pillar about?
• A: Enterprise risk
• B: Strategic risk
• C: Internal controls • Make the vision a reality
• D: Cyber risks
• How do we use costing and budgeting for
P2: Advanced Management Accounting short-term decision-making?
• A: Managing the costs of creating value
• B: Capital investment decision making • How do we monitor and control activity to
• C: Managing and controlling the performance of organisational units ensure performance?
• D: Risk and control
• How do we identify, mitigate against and
P1: Management Accounting manage risks to the organisation?
• A: Cost accounting for decision and control
• B: Budgeting and budgetary control
• C: Short term commercial decision making
• D: Risk and uncertainty in the short term Download Syllabus
Here
3 Global CGMA University and Academic COE
P1 Management
Accounting

What changed in P1?
2015 syllabus 2019 syllabus

P1: Management P1: Management New:
Accounting Accounting Digital issues
in costing
A: Cost accounting
A: Cost accounting
for decision and
systems
control
B: Budgeting and B: Budgeting and

budgetary control budgetary control
C: Short-term
C: Short-term
commercial
decision making
decision making
D: Dealing with D: Risk and

uncertainty in the uncertainty in the
short term short term

CGMA competencies in a digital world
The competency framework reflects our

findings on how finance professionals are
expected to apply accounting and finance
skills within the context of the business/
organisations in which they operate.
It also reflects for the first time how

technology and a digital mindset will be
required to affect and influence their own
decisions, actions and behaviours and
those of their colleagues within the wider
organisation.
Read & Download Here

P1: Structure and outline
Costing required to
support the budgets and Exam weighting: 30%
decision making
Primary topics
Exam weighting: 25% Budgets to translate medium Short-term decisions to Exam weighting: 30%
term decisions into exploit new opportunities to
actionable short term plans create or preserve value
Use understanding of risk and

Exam weighting: 15% uncertainty in the short term to
improve the quality of budgets and
short- term decisions

Exam blueprint

The P1 exam blueprint
• For the first time, under the updated 2019 CIMA Professional
Qualification, CIMA is publishing examination blueprints based on the
syllabus which set out in detail what is examinable in each of the nine
Objective Tests and three Case Study examinations. The Blueprints will
be published annually, and provide information about the format,
structure and weightings of the assessments.
• The blueprints will only be applicable to exams scheduled under the 2019
Professional Qualification.
Download Exam
Blueprint Here
Key features of the blueprints
• Updated annually
• 3 documents, one per level
• 4 sections
– Overview
– Case study exam business
simulation
– Objective test representative tasks
– Appendices (formulas etc.)
Download Exam
Blueprint Here
Global CGMA University and Academic COE
Link To Timeline
P1 exam dates
P1 exams under the
updated Professional
Qualification will
Scheduling of commence
P1 exam under
the 2019 PQ will
open 4 Nov
2019
1 Aug
2019

Exam overview
Skill level Exam format CIMA will publish updated objective

test pass rates every quarter
Remembering Objective test following the release of pass rates for
On-demand case study exams.
Understanding
Computerised
Application 60 questions
90 minutes View Pass Rates

Examination purpose
• The Objective Tests assure that learners have acquired the fundamental
knowledge, skills and techniques for the role that will be simulated in the
culminating Case Study Examination.
• The Objective Tests will cover all areas of the syllabus and will ensure
that learning has taken place across the breadth of the syllabus.
• The Objective Tests at the operational level are weighted towards

remembering, understanding and application with analysis and
evaluation in highly structured scenarios.

“I can” statements
• In the exam blueprint, you will find representative task statements.
• Each statement is a plain English description of what a CIMA finance professional should know
and be able to do i.e. “I can….”.
• The content and skill level determine the language and verbs used in the representative task.
• CIMA will test up to the level of the task statement in the objective test (an objective test
question on a particular topic could be set at a lower level than the task statement in the
blueprint).
• The task statements in the blueprint are representative and are not intended to be (nor should
they be viewed as) an all-inclusive list of tasks that may be tested on the Examination. It also
should be noted that the number of tasks associated with a particular content group or topic is
not indicative of the extent such content group, topic or related skill level will be assessed on
the test.
A snapshot of the P1 exam blueprint
P1: Cost accounting for Skill level
decision and control
Lead Component Remembering and Application Analysis Evaluation

outcome outcome understanding Representative task statement
1. Rationales a. Definition of Understand costing and the
for costing costing different reasons for calculating
costs.
The slides below

will list some of
these
representative
task statement

Topic A – Cost accounting for decision and control
P1 Management Accounting

Summary
• This section is about understanding why costing is done
and what it is used for.
• It introduces candidates to the basic building blocks of

costing and how to apply them in the costing methods and
techniques organisations use.
• In a fast-changing digital world this understanding is critical

and can enable candidates to develop their own ways of
calculating costs when existing methods are no longer
appropriate.
• Digital costing is introduced in this section. New

P1A: Cost accounting for decision and control
Lead outcome Component outcome Topics to be covered Explanatory notes
1. Distinguish a. Define costing • Inventory valuation • This seeks to address the following pertinent
between the b. Distinguish between the • Profit reporting questions:
different rationales for costing • Cost management and transformation
rationales for • Decision-making • What are reasons for calculating costs?
costing • What types of costs are appropriate for
a particular purpose and why?
2. Apply the main a. Explain the main costing • Cost elements • Examine the basic building blocks of costing
costing concepts • Costs structure and how they apply to different types of
concepts to b. Apply costing concepts to • Cost behaviour organisations and operating contexts (e.g.,
organisations different organisations • Cost drivers manufacturing and service sectors).
and cost and cost objects • Costing applied to different types of organisations
objects • Costing applied to digital cost objects • How has the digital world affected the nature
of these building blocks of costing?
3. Apply costing a. Cost accumulation, • Trace, classify and allocate costs • Investigate how costs are traced, classified,
methods to allocation, apportionment • Marginal costing accumulated, allocated, apportioned and
determine the and absorption • Absorption costing absorbed to arrive at the costs of a product,
costs for b. Standard costing • Price and rate variances service or other cost object.
different c. Variance analysis (without • Usage and efficiency variances
purposes mix and yield variance) • Interpretation of variances • Calculate the costs of products or services
d. Activity based costing • Product and service costing using ABC using various costing methods.
e. Digital costing • Advantages of ABC over other costing systems
• Features of digital costing • Determine which costing methods are
appropriate and why?

Example of representative task from exam blueprint
I can determine why I can determine the I can determine the

product costs are advantages and potential differences
calculated using disadvantages of activity- and difficulties of
different methods for based costing compared costing digital
different purposes for with traditional marginal products as
different types of and absorption costing compared to costing
organisations. methods. traditional products.
Download Exam
Blueprint Here
Resource list

The CGMA cost
transformation model is
designed to help businesses
to achieve and maintain cost
Read Read
competitiveness. It serves as
a practical and logical
planning and control
framework for transforming
and managing a business'
cost-competitiveness.
Read Read
The model consists of a set
of six co-dependent areas.
Read Full Case

Report Here studies
Read
Toolkit for management of retail returns
Research carried out by Sheffield
University, Cranfield School of
Management, and Sheffield Business
School in the UK, and funded by CIMA’s
academic research programme and the
UK government (Department for
Transport).
Read Here
Download Toolkit For Free Here

Read Read
Digital costing
Digital costing allows to define a target
price automatically for thousands of
references, through massive processing
of detailed data available within the
engineering department.
This approach creates new negotiation

levers with suppliers and enables cost
reduction up to 40% compared to a
classic approach.
Read report Watch video

Digital costing
Cost Accounting for How to

Management in digitally Calculate Total
the Digital Age distributed Lifetime Costs
content of Enterprise
Alnoor Bhimani Software
London School Media & Solutions
of Economics Entertainment
November 2011 2017
Download Read Report Read Here

Challenges in costing
A smarter approach to Cost-of-complexity

cost reduction in the exercise enables better
public sector decisions
McKinsey Journal of Accountancy

June 2018 January 2019
Read Article Read Report

Download Read

Activity Based Costing (ABC)
Take Online Course

Here

Digital tools for Zero-Based Budgeting (ZBB)
All companies would like to get their
new products to market more
quickly and below their cost goals.
But how?
Read more in Accenture’s research

report 2017.
Download Watch Video

Topic B: Budgeting and budgetary control

Summary
• Taken together budgeting and budgetary control is one of
the means by which the finance function enables and
shapes how organisations create and preserve value.
• This section examines the various reasons organisations

prepare and use budgets, how the budgets are prepared,
the types and sources of data, the technologies used to
improve the quality of budgets, how budgets are
implemented and the impact on the people who work
with the organisation.

P1B: Budgeting and budgetary control
1. Distinguish a. Explain the role of budgets • Planning • Why do organisations prepare budgets?
between the b. Distinguish between the • Communication • In what ways are the different rationales for preparing
different different rationales for • Coordination budgets compatible with each other?
rationales for budgeting • Motivation • How do organisations get the most out the budgeting
budgeting • Control etc process?
2. Prepare a. Explain forecasting and its • Time series and trend analysis to • What is the process by which budgets are prepared?
budgets relationship with budgeting forecast sales volumes • What types of budgets are required by organisations?
b. Prepare master budgets • Components of master budgets and What data do they use and where do they get the data
c. Conduct what if analysis in their interaction with each other from? How are those budgets prepared and
budgeting • Limiting factors presented? What technologies are available for
d. Describe the technologies • Stress testing budgets improving the quality of the budgets?
available for improving • Big data analytics and budgets
budgeting • Alternative approaches to budgeting
3. Discuss Discuss: • Feedback and feedforward control • What is budgetary control? Describe and discuss how
Budgetary a. The concept of budgetary • Flexed budgets and why the budgetary control system provides
control control • Target setting and motivation feedback and feedforward to the organisation.
b. Human dimensions of • Controllable and uncontrollable • What are the behavioural impacts of budgetary control
budgeting outcomes and how are they managed?
• Dysfunctional behaviours in budgeting
• Ethical considerations in budgeting

I can prepare a I can determine the

I can determine the
budget for any ethical implications in
benefits and costs of
account in the budgeting on
incremental, zero-
master budget organisations in the
based, rolling and
based on context of a competitive
activity-based budgets
projections/ market, a government
and beyond budgeting
forecasts and agency, or subsidiaries.
approaches to
managerial targets budgeting.
Download Exam
Blueprint Here

Resource list

Forecasting
Read Article Here
Read Article Here

Read Article Here Read Article Here

Read Article Here
Watch Video Here

Topics discussed:
• Planning and budget process
• Measure personnel activities to build a
performance based budget
• Establish priorities for spending on capital needs
• Budgeted action plans and initiatives
• Calculating the return on investment for
expenditures and headcount increases
• Justify the costs of a department, team, or job
fuction
Purchase Book • High level budget problems

Myriam Madden,
FCMA, CGMA,
describes how she
created a leaner and
more effective
budgeting process at
Historic Scotland.
She realised that the

twice-a-year re-
budgeting exercise
was
counterproductive, so
she looked to make
more targeted
changes.
Watch Video

Topic C: Short-term commercial decision making

Summary
• Organisations cannot foresee every opportunity that might arise in the
course of their operations so they need mechanisms by which to identify
and take advantage of these opportunities as they arise.
• The primary objective of this section is to guide candidates in how to do

this in the short term through effective decision making.
• The finance function supports such decisions (e.g. pricing and product
choice) using techniques such as relevant revenue and cost analysis and
break-even analysis.
• Candidates are introduced to these techniques and the concepts that

underpin the techniques. They are expected to be able to apply the
techniques to support short term decision making.

P1C: Short-term commercial decision making
1. Describe the a. Describe pricing and • Marginal and full cost recovery for • Describe the types of short term decisions made
main types of revenue maximising pricing decisions by organisations and the circumstances that give
short term decisions • Differences in pricing and revenue rise to them.
decisions b. Describe product decisions maximisation for the short-term and • What do these short term decisions seek to
made by long term achieve?
organisations • Product mix • How important are they to performance of
organisations?
• The emphasis is on both revenue and costs.
2. Explain the a. Explain the objectives of • Implications of commercial decision • What are the objectives and underlying concepts
underlying decision making making in the short term that are used to guide short-term decision making
concepts b. Explain the underlying • Relevant revenues and why?
used for short concepts of short term • Relevant costs • Distinguish between those concepts of revenue,
term decision decision making • Difference with profit reporting costs and information from other concepts.
making
3. Apply Apply the following to support • Make or buy decisions • Use data (financial and non-financial) and the
appropriate short term decision making • Discontinuation decisions appropriate concepts and techniques to support
techniques to a. Relevant cost analysis • Multi-product break even analysis decision making to achieve organisational
support short b. Break-even analysis • Use of data and technology to analyse objectives of value creation and preservation.
term decision c. Product mix decisions with product mix decisions
constraints • Ethical considerations in short term
d. Data & Technology decision making

I can prepare a I can use results of

multi-product break- I can perform simple
graphical methods and
even analysis, product mix analyses in
simultaneous equations
including break-even situations where there are
of two variable
and profit/volume limitations on product /
problems to identify
charts, service demand and one
optimal solutions.
contribution/sales other production
ratios and margin of constraint.
safety.
Download Exam
Blueprint Here
Resource list

Read Full Read Full
Report Report

Read Article Here
Read Article Here

Case study – Apex Parks Group
Like many midsize, privately owned
businesses, Apex Parks Group, which
owns 16 amusement and water parks
and family entertainment centres across
the US, generates an abundance of
financial and operational data that
readily tell how the company is doing.
What's more difficult to figure out is why
the company is performing the way it is.
Read Case Study

Classroom business game
Situated on the French Riviera, ‘Paradise
Park’ is one of Europe’s biggest Theme
Parks. As a Management Accountant, you
have been appointed to the park’s decision
making panel to agree the design and build
of a new ride. The new ride could be
anything you like, but you must agree with
your colleagues on what the new ride will be
and come up with an initial design on the flip-
chart provided.
Download | Play

Topic D: Risk and uncertainty in the short term

Summary
• Budgets and decisions focus on the future.
• This introduces uncertainties and risks that need to

be identified, assessed and managed.
• The aim of this section is to help candidates

identify, assess and manage the risks and
uncertainties associated with the short term.

P1D: Risk and uncertainty in the short term
1. Apply basic a. Explain nature of risk and • Stress testing • What types of risks and uncertainties do
risk uncertainty in short term. • Sensitivity and what-if analysis organisations face when preparing and
management b. Apply basic sensitivity • Probability distributions implementing budgets and when making short-
tools in the analysis to budgeting and • Decision trees term decisions?
short term. short-term decision-making.
• How are those risks and uncertainties identified,
assessed and managed?

I can quantify risk I can use a basic

using sensitivity I can apply decision
sensitivity analysis and
analysis, expected models to deal with
“what if” in decision
values, standard uncertainty in
modelling to identify
deviations and decision-making.
variables that might have
probability tables. impacts on project
outcomes.
Download Exam
Blueprint Here
Resource list

Stress testing
Stress-Test Your
Strategy: The 7
Questions to Ask
Harvard Business
Review
2010
Read Report Read Report Read Report

Basics of risks
Listen To Podcast

Enterprise Risk Management
The 2017 report summarises insights
from 586 executives in organisations
across the world and provides insights
on the current state of enterprise-wide
risk oversight, including identified
similarities and differences in four
global regions.
The 2019 report provides detailed
insights about the maturity of various
organisation’s current state of ERM
practices based on survey responses
from 445 business executives.
Read 2017 Report Read 2019 Report

Quizzes and
business games

Short term decision making
Take Quiz Here

Classroom business game
A proposal has been prepared for the
Kadgee Board to review for survival long-
term and become more successful financially
by undergoing transformational change.
However, in order to allow the Kadgee Board
time to agree on what direction it should
take, you will need to make suggestions on
short term measures to cut costs before
presenting these to the board (your fellow
students and academic staff).
Download | Play

Additional classroom business games
Click To View
At
CGMA Academic
Partners Website

Contact:
[email protected]
[email protected]
Email Now

Thank you
© 2019 Association of International Certified Professional Accountants. All rights reserved. This presentation’s images are subject to copyright protection and used under license from
third parties. Do not use images from this presentation in other presentations or documents without first consulting with Legal. The use of copyrighted images outside the
licensed scope constitutes copyright infringement and subjects the user to monetary damages and other penalties.
© 2018 Association of International Certified Professional Accountants. All rights reserved.
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CIMA Professional Qualification

Created by: Global CGMA University and Academic

and CGMAs by increasing

Global CGMA University and Academic COE

4 Global CGMA University and Academic COE

2015 syllabus 2019 syllabus

B: Budgeting and B: Budgeting and

D: Dealing with D: Risk and

5 Global CGMA University and Academic COE

The competency framework reflects our

It also reflects for the first time how

Read & Download Here

6 Global CGMA University and Academic COE

Use understanding of risk and

7 Global CGMA University and Academic COE

8 Global CGMA University and Academic COE

11 Global CGMA University and Academic COE

Skill level Exam format CIMA will publish updated objective

12 Global CGMA University and Academic COE

• The Objective Tests at the operational level are weighted towards

13 Global CGMA University and Academic COE

Lead Component Remembering and Application Analysis Evaluation

The slides below

15 Global CGMA University and Academic COE

16 Global CGMA University and Academic COE

• It introduces candidates to the basic building blocks of

• In a fast-changing digital world this understanding is critical

• Digital costing is introduced in this section. New

18 Global CGMA University and Academic COE

I can determine why I can determine the I can determine the

20 Global CGMA University and Academic COE

Read Full Case

Download Toolkit For Free Here

22 Global CGMA University and Academic COE

This approach creates new negotiation

Read report Watch video

Cost Accounting for How to

November 2011 2017

Download Read Report Read Here

25 Global CGMA University and Academic COE

A smarter approach to Cost-of-complexity

McKinsey Journal of Accountancy

Read Article Read Report

26 Global CGMA University and Academic COE

27 Global CGMA University and Academic COE

Take Online Course

28 Global CGMA University and Academic COE

Read more in Accenture’s research

Download Watch Video

29 Global CGMA University and Academic COE

30 Global CGMA University and Academic COE

• This section examines the various reasons organisations

31 Global CGMA University and Academic COE

32 Global CGMA University and Academic COE

I can prepare a I can determine the

33 Global CGMA University and Academic COE

34 Global CGMA University and Academic COE

Read Article Here

Read Article Here