In the year 2018, the agreement between USA CMA and Indian CMA has been renewed. So, both the institutes contribute to the cost and management accountancy subject. Indian institute ICWAI and global institute IIMA have mutual recognition to serve for the admission and job. After completing the course, the student gets the certificate of practice. There is a mutual understanding of job and admission. The answer to the question Does a CMA have a better scope in India or the US? It purely depends upon the skills of the professional. US CMA can work in India for MNC companies. Indian CMA has the equivalence to work in the USA as a cost accountant.
In the year 2015, the UK institute CIMA and Indian Institute ICAI have signed an agreement. This exemption exempted some subjects for CIMA students studying CMA and CMA students studying CIMA. CMA vs. CIMA: which is better? Hope this is another hunting question among accountancy students? For the professional ladder, student needs to study the subject and taxonomy which ends up with multiple qualifications. Domestic processes and global processes have challenges and changes. Cost accountants work in the job profile of cost accounting, business analyst, accounting, auditing, financial management, direct and indirect tax consultancy, ERP functional analysis, system analysis, business intelligence system executive, process analysis, and teaching in management institutes or colleges. The topic of this blog is about two courses CMA USA VS CMA India. And it brings out the different profiles of accountants and the challenges on the job for cost and management accountants. Towards the end, the students get an answer to the question that “which course Indian CMA or USA CMA is best for the beginner level”?.
Profile of Cost and management accountant in India:
In India, cost accountants work in manufacturing companies, the service industry, the education sector, banks and the government sector. After completing the 12th standard or graduation, students can appear for the CMA foundation level examination. The data from raw material purchases cost, labour cost, and inventory cost help the cost accountant to evaluate the performance, forecast budget and also help for asset management. Performance evaluation, periodic cost analysis and budgeting are essential for preparing financial reports to show the tax authorities, stockholders, creditors and regulatory agencies.
Inventory management is similar in the USA and UK. The replacement value and net realizable selling price are considered as the value in inventory management. In India, the tax is charged over raw materials and finished goods. The terms provision, reserve, Goodwill and depreciation differ in foreign countries. As per the US GAAP, Goodwill is a form of an intangible asset amortized for ten years. The customer relation, return on asset ratio and brand identity help for calculating the goodwill of the Company. The liability of deferred income tax is also different in the USA and UK. The global supply chain depends upon inventory management as it constitutes the value of demand and supply. The future inventory needs depend upon the forecast of the sales. So, the cost of raw material, global supply chain and predictions of marketing group is different in India and USA. This creates the difference between the cost accountant’s profile of India and the USA.
Profile of cost and management account in the USA
By doing CMA, USA students are recognized as global management accountants. CPA and CMA are the two certificates from America for cost accountants. CIMA is the certificate for cost accountants from London based institute. In the year 2016, the pass rate for CMA part one is 35 per cent and for part two it is fifty percentages. The technical aspect and experimental aspect are different in the accounting profession. It is easy to inculcate the technical aspect in the syllabus. But for transferable skills or experimental skills, syllabus change is mandatory. In India, the bachelor degree in accountancy is three years, and in the USA it is four years. Here the study time, laboratory time both are included. In the USA, study time is given paramount importance. The research centers in the universities enhance the creativity and innovation in America. Higher education has high standards in the USA, and this country was referred to as a hub for higher studies. Uniformity in the curriculum of accounting professional courses is a crucial one as it helps for facing the challenges around the world.
Conclusion:
The argument about which is better CMA India or CMA USA? Put forth the conclusion that uniformity and clarity are two different things which reflect in the curriculum of the CMA course. Technical and theoretical aspect requires uniformity. Experimental skills require clarity. Indian CMA provides clarity in inventory management, Goodwill calculation, performance evaluation, and tax calculation. The challenging environment requires more plans and processes. So, learning and working in the Indian system help to acquire the pertinent skill that equips the profession of cost and management accountants. From a global perspective, the research collaboration and MOU showcase the bridging between the educational institutes. The accounting profession is evolving as per the demand, supply and technological advancement. The educational institutes fill the gaps in education through practical training. Students learn about the current scenario in the cost and management domain through article ship training. This article ship training after intermediate level helps for securing high marks in the final level of cost and management accountant’s examination in India. The US CMA demands graduation and two years of work experience. Here the students do not indulge in article ship training. So, after completing Indian CMA, students have solid two years of job experience that match the eligibility criteria for US CMA.
