What is TOPCIMA?

TOPCIMA (code name T4) stands for 'Test Of Professional Competence In Management Accounting'. This is the fifth and the final stage of the CIMA professional qualification offered by CIMA UK. 

To reach the TOPCIMA stage one had to come through four other stages, namely, Foundation Level, Operational Level, Managerial Level and Strategic Level. 

The Pre-seen 

TOPCIMA consists of one paper based on a pre-seen and an unseen case scenario. The pre-seen will be issued a few months before the standard exam dates (May and November). The pre-seen will consist of a fabricated business scenario, developed through real world and real business implications and situations. Usually the pre-seen will cover a wide array of the business and the industry in which the business operates. 

The pre-seen will start from usually the incorporation of the business or at least will give a few details about the incorporation, if the focus is on other aspects. Then the pre-seen will provide the background to some specific areas of the business, of which the unseen issues can be developed later. Such areas are, 

1. Issues with the incorporation
2. Issues with the management/BOD
3. Issues with the business performance
4. Issues with the business financials
5. Issues in relation to HR of the business
6. Issues in relation to technology of the business
7. Issues in relation to competition of the business
8. Issues in relation to new investments/divestment
9. Issues in relation to undertaking new projects
10. Issues in relation to expansion of the business
11. Issues in relation to business takeovers, partnerships, mergers and acquisitions
12. Issues in relation to opportunities and threats of the external environment
13. Issues in relation to business closure/liquidation.

Only a basic background story for such issues will be given in the pre-seen. Mostly they do provide some financial information relating to the current/past/future years in preparation to the unseen issues they will raise.

So it is highly advised that a student facing for the TOPCIMA exam has a thorough understanding of the operational, strategic and financial situation of the specific business and the industry given in the unseen. It will help to remember some critical information out of the pre-seen so that the student does not have to refer to the pre-seen again and again and waste time at the exam. 

The Unseen 

The unseen will be given at the exam and will have specific issues that have developed within the time. Usually 5 issues under five different topics/segments will be given in the unseen and they will not necessarily appear in any order of significance. 

The student is expected to prioritize (order the issues in a logical basis) the issues when they are presented in the report. Unlike Strategic level case study, TOPCIMA case study will require a great degree of integration between the pre-seen and the unseen. The student should be able to draw out information form the pre-seen to support the issues/recommendations for issues given in the unseen.

A 20 minute time slot will be allocated for reading the unseen and another 3 hours to write the full report. 

The unseen will usually focus on a maximum of three calculation based issues and an ethical issue. The financial analysis based issues should be supported by proper calculations shown in the separate booklet give, named 'Supplementary Booklet'. 

Balanced Scorecard: A Balanced Approach to Business Analysis

Balanced Scorecard is a modern business analysis model that provides a quite balanced or 'holistic' analysis of the business. This means that Balanced Scorecard does not mrerly focus on one aspect of business such as financial preformance, but rather focuses on the improvement of the business aspects all around.

Balanced Scorecard focuses on four main aspects as depicted by the diagram below.

Dimensions of Balanced Scorecard

01) Financial Perspective

Financial perspective focuses on the achievement of the financial objectives of the organization. Pretty much most of the objectives of a general business organization tend to financial in nature, such as, achieving a certain level of profits, reaching a specific revenue target, reducing costs etc. These are all important and relevant objectives for a business, but the Balance Scorecard shows that merely financial objectives are not enough for a successful enterprise.

02) Customer Perspective

This is where a business has to be concerned, in almost all the ways, about the customer. 'Customer is the King , so needs to be treated as such. Customer feedback on satisfaction level, required additional products or services, customers' expectations etc are variables of this dimension. Always the focus will be on providing a 'better' service to the customer so that the customer will retain and hopefully bring in more customers in the long term.

03) Internal Business Process Perspective

This aspect mainly focuses on the improvement of the process of the business. Aspects such as improving the efficiency, productivity, success of the internal controls, systems and processes etc are the variables of thsi dimension.

04) Learning and Growth Perspective

This says that an organization always has to be positive about 'learning and growing'. Or simply put, the organization has to continuously be improving and keeping up with the changing environment. Employee and management training and development, improving technologies used in organization, focus on expansions and growth are a few variables of this dimension.

Balances Scorecard is a relatively modern business analysis tool and is being recognized as a valuable tool for measuring business performance. An overall idea of the concept is critical for the successful management of the modern business organizations.