CIMA Operational Level

Course details

The operational level is made up of three subjects. Students who have completed the Operational level are awarded the CIMA Diploma in Management Accounting and will receive the letters CIMA Dip MA.

There are three papers within the operational level which has been designed to develop knowledge and skills in a progressive manner. To progress from the operational level, students are required to complete three Objective Tests (OTs) and one Integrated Case Study (ICS).

Upon completion, students will receive the CIMA Diploma in Management Accounting. Students can then progress to management level.

Management Accounting

Overview:

P1 stresses the importance of costs and the drivers of costs in the production, analysis and use of information for decision making in organisations. The time focus of P1 is the short term. It covers budgeting as a means of short term planning to execute the strategy of organisations. In addition it provides competencies on how to analyse information on costs, volumes and prices to take short term decisions on products and services to develop an understanding on the impact of risk to these decisions. P1 provides the foundation for cost management and the long-term decisions covered in P2.

Covers:

1. Cost accounting systems.
2. Budgeting.
3. Short-term decision making.
4. Dealing with uncertainty through decision analysis.

You will learn how to:

1. Use budgeting as a means of short-term planning to implement the strategy of the organisation.
2. Analyse information of costs, volumes and prices to take short-term decisions on products and services.
3. Appreciate the impact of risk to these decisions.

Organisational Management

Overview

E1 focuses on the structuring of organisation. It covers the structure and principles underpinning the operational functions of the organisation, their efficient management and effective interaction in enabling the organisation to achieve its strategic objectives. It lays the foundation for gaining further insight into both the immediate operating environment and long-term strategic future of organisations, which are covered in E2 and E3.

Covers:

1. Introduction to organisations.
2. Managing the finance function.
3. Managing technology and information
4. Operations management.
5. Marketing.
6. Managing human capital.

You will learn how to:

1. Analyse issues and events in the global business environment.
2. Develop an understanding of the structure and principles sustaining the operational functions of the organisation.
3. Align and mobilise all its parts to implement strategy.

Financial Reporting and Taxation

Overview:

F1 covers the regulation and preparation of financial statements and how the information contained in them can be used. It provides the competencies required to produce financial statements for both individual entities and groups using appropriate international financial reporting standards. It also gives insight into how to effectively source and manage cash and working capital, which are essential for both the survival and success of organisations. The final part focuses on the basic principles and application of business taxation. The competencies gained from F1 form the basis for developing further insights into producing and analysing complex group accounts (covered in F2) and formulating and implementing financial strategy (covered in F3).

Covers:

1. Regulatory environment for financial reporting and corporate governance.
2. Financial accounting and reporting.
3. Management of working capital, cash and sources of short-term finance.
4. The fundamentals of business taxation.

You will learn how to:

1. Produce financial statements for both individual entities and groups with reference to international financial reporting standards.
2. Manage cash and working capital within the business.
3. Understand and apply basic principles of business taxation.

Operational Level Case Study

Overview

The integrated case study exams combine the knowledge and learning across the three subjects, and are set within a simulated business context relating to one or more fictionalised organisations which are based on a real business or industry. The technical content and theory for the three subjects at a level will have already been tested thoroughly in the objective tests; the case study exam aims to test the application of this knowledge to real life business scenarios and, in so doing, tests the higher level skills of application, analysis and evaluation. The case study incorporates calculations, short answers and essays. Candidates must have completed or be exempt from the three objective tests at a particular level, before attempting that level's integrated case study.

Covers:

P1, F1 and E1 content

You will learn how to:

Apply the knowledge you have gained in the three subjects to reflect real-life work situations.