Cost accounting and management accounting are two different subjects under accounting. But, both are viewed as the same because cost accounting supports the operations of management accounting. In return, management accounting also pushes cost accounting. Activities of cost accounting go as budgeting, external reporting, profit measurement, estimate future price, and predict future costs. The activities related to management accounting goes as reporting to the management, help for decision making, formulate policies, interpret financial statements, control performance, bring coordination among the different departments, motivate employees, and manage the tax administration. Let us discuss the changes and growth in the year 2020 for CMA professionals.
CMA Training Exemptions as of 2020
In the intermediate training, engineering graduates are exempted from paper six, 100 hours of computer training, and paper nine. And Lawyers are exempted from the sixth paper of the inter exam. As per the notification from ICMAI in April 2020, CSS, IOTP, computer training, and practical training will be considered exempt from inter or final examinations. In the CMA Exam, the MCQ questions and essay type questions in the question paper form the structure of the question paper. MCQ questions get corrected online, and essay type questions would be corrected off-line systems by the professors. It is perceived by old students that CMA is comparatively easy than CA and CS. CMA membership is gifted after practical training. This membership is necessary for applying for the CMA final. Let me discuss the new changes and growth of CMA graduates.
2020 CMA Exam changes
The CMA course is to test the knowledge required for the role of the cost accountant. The strategic analysis, technology reliance, and decision making in modern days is reflecting changes in the syllabus. As of 2020, a new subject called technology and analytics is added to the syllabus. Because of this change, the other subject’s percentage of the share went down to a considerable quantity. The percentage of contribution to the part one subjects in CMA goes as Cost management with 15 percent, technology and analytics with 15 percent, internal controls with 15 percent, planning, budgeting and forecasting with 20 percent, external financial reporting decisions with 15 percent, and performance management with 20 percent. Part one is also known as financial planning, analytics, and performance.
In part two, the six competencies contribute to the following percentages. They are risk management with 10 percent, professional ethics with 15 percent, investment decisions with 10 percent, financial statement analysis with 20 percent, decision analysis with 25 percent, and corporate finance with 20 percent. The focus of part two is towards strategic financial management. If CMA exam planning is before 2020, then the above mentioned new changes are removed. If the student has already completed part one, then he receives credit for three years. This period is for writing part two with the same old syllabus.
ICMAI CMA Foundation Registration 2020-21
The date for two exams of 2020 to 2021 is closed as of now. Online mode and off-line mode of registration will be available for next year’s planning to the students. For the year 2021, the two important dates are 31st of January, 2021, and July 31, 2020. For a candidate with 10th qualification age proof, passport photo, specimen signature, and 10th pass mark sheet must be submitted to the ICAI institute. In case of joining after 12th standard, passport photo, age proof, specimen signature, 10th mark sheet, and 12th mark sheet need to be given.
Additional qualification courses for CMA professionals
If you want to do a long-term course, then ICWA, CFA, CS, and CA are the best choices. The tenure for all these courses goes for three years. CPA, CISA, CIA, CFP are the courses that require medium term. Certification courses recommended with CMA are CIFRS, CMA, and NCFM. The combinations which work for CMA professionals are M.com+CMA, LLB+CMA, MBA+CMA, and CS+CMA. The knowledge that is essential for the working environment of CMA professionals is Tally, ERP, IFRS, SAP, and MIS. Finance knowledge and taxation knowledge both are essential for cost accountants.
CMA demand in the USA for different industries
The top ten industries for CMA professionals in the USA goes as follows: Manufacturing, Educational services, information technology, health services, contract construction, transportation, wholesale and retail, agriculture, public accounting, non-classifiable, finance, insurance, real estate, other services, and government. Predominantly cost accountants prefer to work in the manufacturing industry and government sector.
Accounting practices contribute to nation-building. The USD is now given a value of 2 trillion. And PM Modi said that it is outlined to change it as 20 trillion economic values. CMA support industrialization and global trade. The qualification of CMA boosts the CV to gain a high salary. The following points reflect that cost and management accountants social responsibility share for the nation.
- Bring transparency and de-risk the financial sector of the economy.
- To gauge the success of the company in terms of finance it is essential to implement corporate social responsibility to the shareholders, suppliers, and employees.
- Reach big corporate to strengthen government, MSMEs, academic institutions, and NGOs.
- Provide financial literacy to common men, small scale entrepreneurs, and farmers.
ICAI is an institute with 5 lakh students in India, which stands as the second-largest in the world. Appropriately there are 85,000 CMAs qualified for the cost accountant profession in India. CMA expands as a cost and management accountants. This course is from IMA. CIMA is the course that is mentioned as similar to CMA by the students. CIMA expands with meaning as a chartered institute of management accountants. This CIMA is the certification from the UK. The recognition of professional courses globally is different. In the USA, CMA is the course that is more valued than CIMA. In the UK, CIMA is a valuable course. CMA and CIMA both courses are equally demanded in the Middle East. In Canada, CPA Canada is the course that is much important than CMA. CMA is the second valued course in Canada than CIMA. In China, CMA is a recognized course.