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ICAN Financial Management Notes

How businesses raise, invest and manage money. This course follows the ICAN syllabus in 75 topics. All 75 are published, each with detailed notes, worked examples, exam tips and ICAN-style practice questions.

Topics in ICAN Financial Management

Read them in order or jump to the one you need.

Topics in ICAN Financial Management, grouped by syllabus section
No.TopicRead
Financial management function and environment12 topics10% of marks
1The nature and purpose of financial managementRead note
2Financial objectives: shareholder wealth, profit, earnings per share and stakeholder valueRead note
3Stakeholders and conflicts of objectivesRead note
4Agency theory and the agency problemRead note
5Achieving stakeholder objectives: governance codes, listing rules and reward schemesRead note
6Evaluating corporate objectives: ratios and total shareholder returnRead note
7Financial management in not-for-profit organisationsRead note
8Macroeconomic policy targets, GDP and fiscal policyRead note
9Monetary policy, interest rates, inflation and the exchange rateRead note
10Money markets, banks and money market instrumentsRead note
11Capital markets and the stock exchangeRead note
12The bond market and technology in financial marketsRead note
Working capital management11 topics15% of marks
13Working capital: nature, elements and objectivesRead note
14The cash operating cycle, working capital ratios and overtradingRead note
15Inventory management: EOQ, reorder levels, just-in-time and ABC analysisRead note
16Managing receivables: credit terms and credit controlRead note
17Debt factoring and invoice discountingRead note
18Early settlement discounts and trade payablesRead note
19Cash flow forecasts and reasons for holding cashRead note
20Short-term investment and treasury managementRead note
21Cash management models: Baumol and Miller-OrrRead note
22Working capital investment policy and determining needsRead note
23Working capital funding strategiesRead note
Investment appraisal14 topics25% of marks
24Capital expenditure, payback and accounting rate of returnRead note
25Relevant cash flows in investment appraisalRead note
26The time value of money: discounting and annuitiesRead note
27Net present value and the case for discounted cash flowRead note
28Internal rate of return and NPV versus IRRRead note
29Taxation and capital allowances in DCFRead note
30Inflation in DCF: real and money termsRead note
31Risk and uncertainty in appraisal: sensitivity analysisRead note
32Expected value and decision treesRead note
33The value of perfect informationRead note
34Simulation, risk-adjusted discount rates and discounted paybackRead note
35Lease or buy and borrow-to-buy decisionsRead note
36Asset replacement: equivalent annual cost and the lowest common multipleRead note
37Capital rationing: divisible and indivisible projectsRead note
Business finance20 topics20% of marks
38Short-term sources of financeRead note
39Long-term sources of finance: equity, debt, hybrids and leasesRead note
40Issuing shares: public offers, placings, introductions, underwriting and buy-backsRead note
41Rights issuesRead note
42Islamic finance: riba, murabaha, ijarah, mudaraba, sukuk and musharakaRead note
43Internal finance and dividend policyRead note
44Cost of equity: the dividend valuation modelRead note
45Portfolio theory and diversificationRead note
46Systematic and unsystematic risk and the efficient frontierRead note
47The capital asset pricing model and arbitrage pricing theoryRead note
48Cost of debtRead note
49Cost of preference shares and convertiblesRead note
50The weighted average cost of capitalRead note
51Project-specific cost of capital and adjusted WACCRead note
52Capital gearing, business risk and financial riskRead note
53The traditional view and Modigliani and Miller without taxRead note
54Modigliani and Miller with tax, market imperfections and gearing in appraisalRead note
55Pecking order theory and choosing the financing methodRead note
56SME financing problems and remediesRead note
57SME finance: venture capital, business angels, crowdfunding and supply chain financeRead note
Business valuations8 topics15% of marks
58Why value a business: reasons and information neededRead note
59Asset-based valuationRead note
60Income-based valuation: P/E, earnings yield and EV/EBITDARead note
61Dividend valuation of sharesRead note
62Discounted cash flow valuation of a businessRead note
63Valuing bonds and preference sharesRead note
64The efficient market hypothesisRead note
65Practical considerations in share valuationRead note
Risk management10 topics15% of marks
66Foreign exchange rates and quotationsRead note
67Foreign exchange risk: transaction, translation and economicRead note
68Causes of exchange rate movementsRead note
69Purchasing power parity, interest rate parity and four-way equivalenceRead note
70Covered interest arbitrage and forward ratesRead note
71Internal hedging: invoice currency, netting, matching, leading and laggingRead note
72Forward contracts and money market hedgesRead note
73Foreign currency derivatives: futures, options and swapsRead note
74Interest rate risk and traditional hedgingRead note
75Interest rate derivatives: FRAs, futures, options and swapsRead note

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About ICAN Financial Management Notes

These are the 75 Financial Management topics, in teaching order, across 6 syllabus sections. The first note is “The nature and purpose of financial management” and the last is “Interest rate derivatives”. Reading them all takes about 13 hours. At an hour a day, that is about 13 days.

What you will learn
  • Explain the finance function, financial markets and the goals of the business (10% of marks)
  • Manage cash, receivables, payables and inventory (15% of marks)
  • Appraise projects using NPV and the other investment appraisal methods (25% of marks)
  • Compare ways to raise money, and calculate the cost of capital (20% of marks)
  • Value a business and its shares (15% of marks)
  • Identify financial risks and hedge them, including with derivatives (15% of marks)

Frequently asked Questions about Financial Management

What is ICAN Financial Management?

How businesses raise, invest and manage money. It is a Skills level paper.

Are the Financial Management notes free?

Yes. All 75 topics are free to read online. You pay only to keep them as PDF and Word, which come in the course pack with the full question bank and marking guides.

Will I find NPV, WACC and derivatives here?

Yes. Investment appraisal carries 25% of marks and business finance 20%. The notes cover NPV, cost of capital (WACC), valuations, working capital, risk management and derivatives, with worked examples.

How many topics are in Financial Management?

There are 75 topics in 6 syllabus sections, in teaching order. Each has a summary, worked examples, exam tips and practice questions.

Which section carries the most marks in Financial Management?

Investment appraisal is the biggest section, at 25% of marks. Start there, but do not skip the rest. Any section can be examined.

Can I practise with past questions?

Yes. Every topic has ICAN-style practice questions with marking guides. Where past ICAN questions exist, a Pathfinder section lists them by diet and year, so you can try the real thing.

What mark do I need to pass Financial Management?

ICAN papers are normally passed with 50%. Confirm the current rule on the official ICAN portal, because the Institute can change it.

Are the notes up to date?

They follow the ICAN Skills level syllabus, so they are the same for every diet. Found a mistake? Tap Tell us on any topic and we will check it.

Are these notes from ICAN?

No. Accountants.ng is independent of ICAN. ICAN publishes the official syllabus, study text and past papers, so use our notes alongside them.

How do I study Financial Management without getting overwhelmed?

Take one topic at a time. Read it, try the practice questions, then check the marking guide. Move through the sections in order, and give extra time to the sections with more marks.