Chapter 1 - Objectives

Part A: Formulation of financial strategy

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A.1 Evaluate strategic financial and non-financial objectives of different types of entities.


(a) Advise on the overall strategic financial and non-financial objectives of different types of entities
  • Overall strategic financial objectives (e.g. value for money, maximising shareholder wealth, providing a surplus) of different types of entities (e.g. incorporated, unincorporated, quoted, unquoted, private sector, public sector, for-profit and not-for-profit).

  • Non-financial objectives (e.g. human, intellectual, natural, and social and relationship).

  • Financial strategy in the context of international operations.

(b) Evaluate financial objectives of for-profit entities.

  • Financial objectives (e.g. earnings growth, dividend growth, gearing) and assessment of attainment.
  • Sensitivity of the attainment of financial objectives to changes in underlying economic (e.g. interest rates, exchange rates, inflation) and business variables (e.g. margins, volumes).