Cost And Management Accountant (India)

Cost And Management Accountant (India) aka CMA is a professional qualified accountant of Institute of Cost Accountants of India. The person clears the Institute conducted examination with prescribed percentage and also completes the required theory and practical trainings conducted by the Institute before being eligible as a registered member with it. As a qualified professional, he can perform the tasks enlisted by the Institute for organisations with manufacturing or service background to ensure proper Costing, accounting, auditing and taxation related controls to be followed by them in the running of their business and operations. These policies clears any ambiguities for the organisations in the maintenance of their books of accounts. The The Institute of Cost Accountants of India has 90000 Cost And Management Accountants.

CMA Logo for exclusive use by Indian CMAs

History and objective

A Cost And Management Accountant (India) previously Known as Cost and Works Accountants is a person who has qualified the examinations and completed the required practical and theoretical sessions conducted by Institute of Cost Accountants of India, which was formed as body of registered cost accountants in 1959.[1] The person is required have sound knowledge in the subject related to Cost Accounting, Accounting, Auditing, and various aspects of Direct and Indirect Taxation for companies engaged in manufacturing and service based operations.[2][3] Currently there are 90000 Cost And Management Accountants registered with The Institute of Cost Accountants of India[4] and 5,00,00 registered as students.[5]

Education

Following are the required educational qualifications for the three levels:[6][2]

Foundation
  • An aspirant can enroll for Foundation Level of Cost And Management Accountant (India) after completion of 10th class from recognized Board or Institution.
  • He can also enroll after passing out 1. from recognised board exam held at Senior Secondary level as per 10+2 scheme 2.from Central Government recognised examination for senior secondary level 3. All India Council for Technical Education examination in commerce for National diploma 4. All India Council recognised exam for senior secondary levels organised by State Board of Technical Education 5. Exam conducted by National Council of Rural Higher Education for Diploma in Rural Service.

Intermediate
  • An aspirant can enroll for Intermediate Level of Cost And Management Accountant (India) after passing of 12th class(10+2) from recognized Board or Institution and foundation level exam conducted by Institute of Cost Accountants of India .
  • Is a graduate from any recognised university or institution in any discipline other than fine arts.
  • Passed out examination on Part 1 conducted for Foundation (entry-level) by CAT of Institute of Cost Accountants of India.
  • Passed out examination on Part 1 along with Competency level Part 2 conducted for Foundation (entry-level) by CAT of Institute of Cost Accountants of India.
  • Cleared foundation level examination from Institute of Company Secretaries of India or The Institute of Cost & Works Accountants of India (ICWA) after passing out 10+2 level examination.

Final
  • Passed out Intermediate level examination conducted by Institute of Cost Accountants of India in addition to practical training for 15 months.

Responsibilities

A Cost And Management Accountant in India performs following activities:[7][1][2]

Financial Services
  • Consultation on tax related matters.
  • Consultation on Project management.
  • Valuation of Business
  • Audit of stocks.
  • Banks related due diligence and concurrent audits.
  • Audit of Internal control and costing system in state, central and public sector undertakings.
  • Customs Act, 1962 based special audits.

Management Consultancy services
  • Planning in Financial Management.
  • Determining Financial policy.
  • Management of Working capital.
  • Capital and Revenue budgets.
  • Management of Inventory.
  • Storage and handling of materials.
  • Selection and Recruitment of personnel.
  • Planning incentive for executives.
  • Financial Planning based advice.
  • Wage incentive based planning.

Curriculum

Following are the curriculum and eligibility for clearance of each of the stages:[8][2]

Foundation Course

Includes four subjects of 100 marks each and duration of exam being 3 hours each.

  • Paper 1: Fundamentals Of Business Laws and Business Communication (FBLC)
  • Paper 2: Fundamentals Of Financial and Cost Accounting (FFCA)
  • Paper 3: Fundamentals Of Business Mathematics and Statistics (FBMS)
  • Paper 4: Fundamentals Of Business Economics and Management (FBEM)

Qualifying Marks

Examination for Cost And Management Accountant Foundation Level are conducted each year in June and December.

An aspirant needs to get 40 percent minimum in each subject and an aggregate of 50 percent in all subjects, to qualify in the foundation examination.

Intermediate Examination

The Intermediate Exam consists of 4 papers each in two groups carrying 100 marks each with prescribed time limit of 3 hours during exam.[2]

Group 1
  • Paper 5: Business Laws and Ethics (BLE)
  • Paper 6: Financial Accounting (FA)
  • Paper 7: Direct and Indirect Taxation (DITX)
  • Paper 8: Cost Accounting (CA)

Group 2
  • Paper 9: Operations Management and Strategic Management (OMSM)
  • Paper 10: Corporate Accounting and Auditing (CAA)
  • Paper 11: Financial Management and Business Data Analytics (FMDA)
  • Paper 12: Management Accounting (MA)

Marks needed to Qualify

A candidate can either opt to attempt for single or both groups in examination, however he can aim for All India Rank in the examination only if he attends and clears both groups at a time and is able to secure marks at top 50 candidates level attending from country.

An aspirant needs to get 40 percent minimum in each subject and an aggregate of 50 percent in all subjects, to qualify in the Intermediate examination. If a candidate appears for examination for both groups and if he is able to secure minimum qualified marks in all subjects in either groups or both groups but fails to get aggregate in any group than the same can be set off from the excess marks from other group. However if still the marks are unable to meet the aggregate criteria in required group, then he is considered as fail for the group he is unable to secure the aggregate and needs to attend again.

Exemption:1.In a exam, if a student gets 60 percent marks in any subjects but fails to clear that group, he will be exempted from appearing in that subject for 3 consecutive exams conducted subsequent to that exam. However, for the exempted subject the percentage of mark will be taken as 50 for the calculation of aggregate in that group.2.In a exam, if a student gets 60 percent marks in any subjects and gets 40 percent marks in that group, but fails to clear that group, he will be exempted from appearing in that subject for 3 consecutive exams conducted subsequent to that exams and will be allowed to carry forward that percentage of marks for future attempts.

Final Examination

The Final exam in Cost And Management Accountant has 8 papers of 100 marks each, which are divided into four subjects in two groups. The exam duration for each subject is 3 hours.[2]

Group 3
  • Paper 13: Corporate and Economic Laws (CEL)
  • Paper 14: Strategic Financial Management (SFM)
  • Paper 15: Direct Tax Laws and International Taxation (DIT)
  • Paper 16: Strategic Cost Management (SCM)

Group 4
  • Paper 17: Cost and Management Audit (CMAD)
  • Paper 18: Corporate Financial Reporting (CFR)
  • Paper 19: Indirect Tax Laws and Practice (ITLP)
  • Paper 20: One of the following subjects
    • Paper 20A: Strategic Performance Management and Business Valuation (SPMBV)
    • Paper 20B: Risk Management in Banking and Insurance (RMBI)
    • Paper 20C: Entrepreneurship and Start Up (ENTS)

Qualifying Marks

A candidate can either opt to attempt for single or both groups in examination, however he can aim for All India Rank in the examination only if he attends and clears both groups at a time and is able to secure marks at top 50 candidates level attending from country.

An aspirant needs to get 40 percent minimum in each subject and an aggregate of 50 percent in all subjects, to qualify in the Final examination. If a candidate appears for examination for both groups and if he is able to secure minimum qualified marks in all subjects in either groups or both groups but fails to get aggregate in any group than the same can be set off from the excess marks from other group. However if still the marks are unable to meet the aggregate criteria in required group, than he is considered as fail for the group he is unable to secure the aggregate and needs to attend again.

Exemption:1.In an exam, if a student gets 60 percent marks in any subjects but fails to clear that group, he will be exempted from appearing in that subject for 3 consecutive exams conducted subsequent to that exam. However, for the exempted subject the percentage of mark will be taken as 50 for the calculation of aggregate in that group.2.In an exam, if a student gets 60 percent marks in any subjects and gets 40 percent marks in that group, but fails to clear that group, he will be exempted from appearing in that subject for 3 consecutive exams conducted subsequent to that exams and will be allowed to carry forward that percentage of marks for future attempts.

Examination

The Examination by Institute of Cost Accountants of India at Foundation, Intermediate and Final levels are conducted two times in a year in months of June and December.[9][10]

Practical Training

A student of Cost And Management Accountant (India) should complete 15 months of practical training with cost accountant who is in practice or cost accountants firm or with any Institute prescribed firm of cost accountants to be eligible for attending examination for final course. They can enroll for practical training anytime after registering for Intermediate level examination. To be a member of Institute of Cost Accountants of India and start their own practice, they should complete 3 years of practical training.[2]

Recognition

Cost And Management Accountant (India) are eligible for courses to do Ph.D in universities based in India, National Eligibility Test (NET) conducted by UGC and the award of Fellowship in Junior Research or Assistant Professor as the degree holders of Cost and Management Accountancy (CMA) course have been recognised as equivalent to Post Graduates by the UGC.[3][11]

Cost And Management Accountant (India) can also practice in United States.[12]

References
  1. "Cost Accountants: Demand upswing for cost accountants". EducationWorld. 15 April 2014. Retrieved 20 June 2022.
  2. "All you need to know about being a Cost Accountant in India". thefinancestory.com. 12 November 2021. Retrieved 20 June 2022.
  3. Thomson, Jeff (20 December 2021). "2022 Will Be The 'Year Of The Management Accountant'". Forbes. Retrieved 20 June 2022.
  4. "Cost accountants' institute asks govt to allow members to conduct financial audits of MSMEs". thehindubusinessline.com. 8 May 2022. Retrieved 20 June 2022.
  5. "Cost accountants' body asks govt to allow members to carry audits of MSMEs". Business Standard India. 8 May 2022. Retrieved 20 June 2022.
  6. "How to Become a Cost Accountant: Career Guide, Courses, After 12th, Salary, Scope, Jobs". collegedunia.com. Retrieved 20 June 2022.
  7. "SEBI includes CMA to carry out Share Capital Reconciliation Audit". taxscan.in. 29 September 2021. Retrieved 20 June 2022.
  8. "ICMAI CMA Intermediate and Final 2021 rescheduled exams start today". news.careers360.com. 3 January 2022. Retrieved 20 June 2022.
  9. "ICMAI Postpones CMA June Exams 2021 for Foundation, Intermediate, and Final Courses | Details Here | India.com". india.com. 31 May 2021. Retrieved 20 June 2022.
  10. "CMA Exam 2021: ICMAI begins registration for CMA Foundation exam on icmai.in, Exam on Jan 2". timesnownews.com. 11 October 2021. Retrieved 20 June 2022.
  11. "Cost accountant qualification to be considered equivalent to PG degree". mint. 18 March 2021. Retrieved 20 June 2022.
  12. "Indian cost accountants may soon practise in US, Canada - Indian Express". archive.indianexpress.com. 8 January 2008. Retrieved 20 June 2022.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.