The ACCA optional paper P5 Advanced Performance Management is considered by many of those who attempt it as the ACCA's most difficult and, indeed, unfair paper. The question requirements can seem unclear, the time pressure to read the lengthy scenarios is very high, and the pass rates are abysmally low, even by ACCA standards. Many students get stuck on this paper, failing several times before finally eking out a pass, or before deciding to switch optional papers altogether. So far, this paper has slowed down a lot of would-be ACCA members, representing a major hurdle to achieving full membership.
If you are as yet undecided, the introductory paragraph might put you off studying P5. But if you are interested in the topic and are emboldened by the fact that people do in fact pass this paper, it's still worth considering. This post helps demystify P5.
1. You need to think on your feet
All of the optional level papers are meant to be set at Master's level, meaning rote memorisation of the models/concepts introduced in tuition is not enough. This is even more true of P5 than it is of, say, tax, where you can pick up marks for memorising a few rules/allowances/rates/dates. Good luck trying that with P5 - it won't work!
In the exam hall, you need to quickly assess whether the models you've learned will be of use for a given requirement or if the answer requires general knowledge and common sense. Candidates are often overly tempted to use a model because it seems 'safe', but using an inappropriate model instead of using appropriate common sense will more times than not result in a poorly written answer. It goes without saying, but question practice is needed to know when models should be used - enough question practice should make the decision second nature on exam day.
2. You need to write confidently and competently
P5 is a paper that places a premium on expressing one's ideas clearly, again more so than the other optional papers. Being a strong reader and writer helps. Naturally and regrettably, this puts non-native English speakers at a disadvantage. The speculation is that the low pass rates for P5 are lower in non-English speaking countries than they are in, say, the United Kingdom. I hate to advise non-native speakers to avoid doing this paper, but it is definitely important to self-assess one's confidence in English. Results in papers F4, F8, P1 and P3 might help give a picture at whether you are strong in communicating in English.
3. Experience in management reporting helps
If you currently or have worked in a role in which you produce reports for management, you will be at an advantage. Don't take this experience for granted! Too often, candidates forget to ask themselves: "If I were a senior manager, what type of information would I like to receive in relation to this scenario? Which type of report would be useful to me to help me make an executive decision?" These sorts of questions need to be running through the P5 candidate's head at all times, so naturally it helps if the candidate has made a habit of asking themselves the same questions in the performance of their job duties.
