Sunday, 12 March 2017

CMA Certification - A Growing Finance Profession


Professionals dreaming of developing a finance career the in the middle east can select CMA as the best way to have an international financial qualification, developing and administering by Institute of Certified Management Accountants (ICMA®).


CMA certification has proved that the ever-increasing demand and high salary packages in the Middle East. The certification makes the candidates the essential skills required to manage the entire finance of any company.

Update: Please refer the website http://www.imanet.org/cma-certification/ for details for the recent changes in the professional course


The requirement for a CMA Certification.


Following are the requirement for becoming Certified Management Accountants
1. Active membership in the Institute of Management Accountants
2. Pay the CMA Entrance Fee
3. Satisfy the Education Qualification
4. Satisfy the Experience Qualification
5. Complete all required examination parts
6. Comply with the IMA Statement of Ethical Professional Practice

Educational Qualification


Bachelor’s Degree from an accredited college or university.
A partial listing of accredited International and US institutions is available at http://univ.cc/world.php. For any further information and clarify, you can contact at ima@imanet.org.

Experience Qualification

Candidates wishing to secure the CMA certification must complete two years of continuous professional experience, in financial management or management accounting. This condition may be completed prior to starting the course or within seven years of passing the examination.

Following are the positions which requiring judgments regularly made employing the principles of management accounting and financial management

Preparation of financial statements

• Financial planning & analysis
• Monthly, quarterly, and year-end close
• Auditing (external or internal)
• Budget preparation & reporting
• Manage general ledger and balance sheets
• Forecasting
• Company investment decision making
• Costing analysis
• Risk evaluation

Employments like computer operator, Salas and marketing, engineering, personnel, and general management will not satisfy this requirement.

Examination syllabus

CMA certification exam is a two-part examination, consists of part 1 and part 2

Part 1 Consists of Financial Reporting, Planning, performance and control

Part 2 consists of Financial Decision Making
        
Each part consists of 100 multiple choice questions and two 30 minutes of essay questions. You will have 3 hours to complete the multiple choice section and one hour to complete the essay question.

You must answer at least 50% of the multiple choice question to be eligible for the essay question






You will not receive the result at the same time when you finish the exam because the essay questions will assess offline. 




Exam results will email and post to your online profile approximately six weeks from the end of the month in which you tested. Performance Reports are sent via email from Parametric to candidates who fail an exam part.

An overview of contents to  be  tested in CMA exam

Part 1: Financial Reporting, Planning, Performance, and Control


The part 1 is again divided into 6 sections

A. External financial Reporting decisions - C level proficiency is testing in this area which includes the preparation of financial statement, balance sheet including the major difference between U.S GAAP and IFRS. 15 percentage of weight is giving to this area

B.  Planning, Budgeting, and forecasting: - This is a major area, where the candidate will test for the strategic planning process, techniques of budgeting and forecasting.  Level of knowledge tested for this part is C and 30percentage weight has given to this area

C. Performance Management:- Factors to be analyzed for control and performance evaluation including revenues, costs, profits, and investment in assets; variance analysis based on flexible budgets standard costs; responsibility accounting for revenue, cost, contribution, and profit centers; key performance indicators; and balanced scorecard. C level proficiency tested for this area with a 20 percent weight.

D. Cost Management:- Cost concepts, flows, and terminology; alternative cost objectives; cost measurement Concepts; cost accumulation systems etc. tested in this area. Total weight for this area is 20 percentage and testing a C level proficiency.

E.  Internal Control: - This section testing area like corporate governance; internal control risk; internal control environment, Procedures, and standards; responsibility and authority for internal auditing; types of audits; assessing the adequacy of the accounting information system controls; and business continuity planning. Total weight of 15 percentages has been given to this area and treating C-level proficiency 

Part 2:- Financial Decision Making

Part 2 also divided into six sections as follows
           
A. Financial Statement Analysis –This section dealing with calculation and interpretation of financial ratios and analysis, analytical issues including the impact of foreign operations, effects of changing prices and inflation, off-balance sheet financing, and earnings quality. C-level proficiency is testing in this area. Total weight of this section is 15 percentages

B. Corporate Finance: - C-level knowledge proficiency is testing in this area and the weight of this section is 20 percentages. It consists of types of risk, the capital instrument of long-term finance dividend policy, working capital management etc.

C. Decision Analysis: - Relevant data concepts, Cost volume profit analysis, pricing methodologies etc. are discussing in this section. 20 percentage weight has given to this area and testing the C-level proficiency in this section

D. Risk Management: - This section includes types of risk, risk management and ERM
This section is having a weight of 10 percentages and testing  the proficient level; of C
E. Investment Decisions: - Cash flow estimates, discounted cash flow concepts are testing in this area. The proficiency tested  in this area is C level and total weight for this section is 15 percentage

F. Professional Ethics: - This section is dealing with the ethical concepts of management accounting professional and for the organization. Here also a C-level knowledge proficiency is testing in the exam with 10 percent weight to total curriculum.

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As the requirements and all other details are constantly updating by the Institute. So updated and authentic information, visit the website
http://www.imanet.org/cma-certification/taking-the-exam

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