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CMA Final Syllabus for 2021 Exam

CMA Final Syllabus

CMA Final Syllabus for 2021 Exam

ICWAI | CMA Final Syllabus – This notification has been issued in exercise of powers conferred by clause (a) of sub-section (2) of Section 15 of the Cost and Works Accountants Act, 1959 and in pursuance of sub-regulation (b) of Regulation 20B and Regulation 31 of the Cost and Works Accountants Regulations, 1959.

Accordingly, if you will take admission to the CMA final syllabus course of the Institute of Cost Accountants of India [ICAI (Cost)] after January 2016, you shall pursue a course under new “Syllabus 2016”. However, CMA Institute has clarified vide its Circular No. G/128/4/2015-16 dated December 24, 2015, that the CMA Final “Syllabus-2016” will be implemented with effect from 01/08/2016 (1 August 2016) and the first examination under CMA final syllabus-2016  took place in June 2017.

Further, the CMA Institute has also clarified vide Notification No. CMA(1)/2016 dated 4th Oct, 2016 that the last Examination under old CMA final “Syllabus 2012” shall be conducted for further two terms i.e. in June 2018  term of examinations. Whereas, the First CMA Final syllabus Examination under the new CMA final “Syllabus 2016” shall be conducted in June 2017.

CMA Final Syllabus for 2021 Exam

You may understand the details of examinations which shall be conducted simultaneously under both CMA final Syllabus by the following table:

ICWAI | CMA Final syllabus Course Examination
Term of ExaminationExaminations to be held under CMA final Syllabus
December 2016CMA final Syllabus 2012No Exam under CMA final Syllabus 2016
June 2017CMA final Syllabus 2012CMA final Syllabus 2016 (First Exam)
December 2017CMA final Syllabus 2012 (Last Exam)CMA final Syllabus 2016
June 2018 and onwardsNo Exam under CMA final Syllabus 2012CMA final Syllabus 2016

Subjects under New Syllabus-2016 for CMA Final Course Students

Note that CMA Institute has also clarified vide Circular No. G/128/5/2015-16 dated December 24, 2015, that the first examination under CMA final Syllabus-2016 shall be conducted in June 2017 and the following subjects shall be under CMA Final syllabus Course Syllabus-2016:

CMA final Syllabus-2016 for Group-III of CMA Final syllabus Course

Paper-13 (P13): Corporate Laws & Compliance
Paper-14 (P14): Strategic Financial Management
Paper-15 (P15): Strategic Cost Management – Decision Making
Paper-16 (P16): Direct Tax Laws and International Taxation

CMA final Syllabus-2016 for Group-IV of CMA Final syllabus Course

Paper-17 (P17): Corporate Financial Reporting
Paper-18 (P18): Indirect Tax Laws & Practice
Paper-19 (P19): Cost & Management Audit
Paper-20 (P20): Strategic Performance Management and Business Valuation


Paper 13: Corporate Laws & Compliance

There are three sections in the Paper-13 of CMA Final Course viz. A) Companies Act, B) Other Corporate Laws, and C) Corporate Governance.

Section A (Companies Act 2013) [50 Marks]:

Section A of Paper-13 of CMA Final contains topics related to the Companies Act, 2013 which has 50% weightage.

1. The Companies Act, 2013

Rules, regulations prescribed under the Companies Act 2013 with special reference to:

  1. a) Company Formation and Conversion

(i) Incorporation of private companies, public companies, companies limited by guarantee and unlimited companies and their conversions/reconversion/re-registration.
(ii) Nidhi Companies, Mutual Benefit Funds and Producer Companies – concept, formation, membership, functioning, Dissolution.
(iii) Formation of Not-for-Profit making companies.
(iv) Procedure relating to Foreign Companies Carrying on Business in India.
(v) Conversion of LLPs into Private Limited Companies and vice versa

  1. b) Investment and loans

(i) Procedure for inter-corporate loans, investments, giving off guarantee and security.
(ii) Acceptance of deposits, renewal, repayment, default, and remedies.

  1. c) Dividends

(i) Profits and ascertainment of divisible profits.
(ii) Declaration and payment of dividends.
(iii) Unpaid and unclaimed dividend – treatment and transfer to Investor Education and Protection Fund

  1. d) Accounts and Audit

(i) Maintenance of Books of Accounts
(ii) Statutory Auditor, Special Auditor and Cost Auditor – Appointment, resignation, removal, qualification, disqualification, rights, duties and liabilities
(iii) Companies Auditor Report Order (CARO) Rules.

  1. e) Board of Directors & Managerial Personnel
  2. i) Directors and Managerial Personnel- appointment, reappointment, resignation, removal.
    ii) Payment of remuneration to Directors and Managerial personnel and disclosure
    iii) Powers of Board of Directors and restrictions on the powers of Directors
    iv) Obtaining DIN
    v) Compensation for loss of office
    vi) Waiver of recovery of remuneration
    vii) Making loans to Directors, Disclosure of interest of a Director, Holding of Office or Place of Profit by a Director/relative
    viii) Interested Directors
  3. f) Board Meetings and Procedures

(i) Board Meetings, Minutes and Registers
(ii) Powers of the Board
(iii) Corporate Governance & Audit Committee
(iv) Duties and Liabilities of Directors
(v) Powers related to – political contributions.

  1. g) Inspection, Inquiry, and investigation
    h) Compromises, Arrangements, and amalgamations
    i) Prevention of oppression and mismanagement

(i) Majority Rule but Minority Protection
(ii) Prevention of Oppression and Mismanagement

  1. j) Revival and rehabilitation of sick industrial companies
    k) Corporate winding up and dissolution – Kinds of winding up – powers of the Court and Official Liquidator
    l) Companies Incorporated Outside India
    m) Offenses and Penalties
    n) National Company Law Tribunal and Special Courts

Section B (Other Corporate Laws) [30 Marks]:

Section B of Paper-13 of the CMA Final Course contains five topics and the detail contents of which have been sited below.

2. SEBI Laws and Regulations

(a) The Securities and Exchange Board of India Act,1992 – Rules, Regulations and Guidelines issued thereunder Clause 49 and SEBI (Issue of Capital and Disclosure Regulations), 2009
(b) The Securities Contracts (Regulation) Act,1956

3. The Competition Act, 2002

(a) Competition – Meaning, objectives, extent, and applicability
(b) Competition Commission of India
(c) Areas affecting competition

4. Foreign Exchange Management Act, 1999

Only basic understanding of Exports, Imports, and Foreign Funds under Deferred Payment, ECB route, loans and export remittance and import remittances.

5. Laws related to Banking Sector

Only a basic understanding of the following topics related to banking sectors.

(a) The Banking Regulation Act,1949
(b) The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
(c) The Prevention of Money Laundering Act, 2002 – Role of Cost Accountants in Anti- Money Laundering (AML) Audits to check tax evasion and transfer of funds.

6. Laws related to Insurance Sector

Only a basic understanding of the following topics related to the Insurance sector.

(a) The Insurance Act,1938;
(b) The Insurance Regulatory and Development Authority Act,1999

Section C (Corporate Governance) [20 Marks]:

This section covers topics related to Corporate governance and other social responsibility of the company. Section C has a 20% weightage of Paper-13 of the CMA Final Course. The detail contents have been depicted below.

7. Corporate Governance

(a) Overview-Issues and Concepts
(b) Corporate Governance Practices/Codes in India,
(c) Corporate governance in the family business
(d) Corporate governance in state-owned business – the MOU system

8. Social, Environmental and Economic Responsibilities of Business

(a) National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business
(b) Corporate Social Responsibility – Nature of activities; Evaluation of CSR projects
(c) E-governance

Paper 14: Strategic Financial Management

There are four sections in the Paper-14 of CMA Final Course viz. A) Investment Decisions, B) Financial Markets and Institutions, C) Security Analysis and Portfolio Management, and D) Financial Risk Management.

Section A (Investment Decisions) [25 Marks]:

Section A of Paper-14 of the CMA Final Course contains three topics and it carries 25% weightage.

1. Investment Decisions, Project Planning and Control

(i) Estimation of project cash flow
(ii) Relevant cost analysis for projects
(iii) Project appraisal Methods – DCF and Non-DCF Techniques
(iv) Capital Rationing
(v) Social Cost-Benefit analysis

2. Evaluation of Risky Proposals for Investment decisions

(i) Investment decisions under uncertainties
(ii) Effect of Inflation on Capital Budgeting Decisions
(iii) Sensitivity Analysis, Certainty Equivalent Approach, Decision Tree Analysis, Standard Deviation in Capital Budgeting, Risk-Adjusted Discount Rate, Options in Capital Budgeting

3. Leasing Decisions

(i) Lease Financing – Evaluation of Lease vs. Buy options
(ii) Break-Even Lease rental determination
(iii) Cross Border Leasing, Sale and Leaseback

Section B (Financial Markets and Institutions) [20 Marks]:

Section B of Paper-14 of the CMA Final Course covers four topics and the content has been explained in detail hereunder.

4. Institutions in Financial Markets

(i) Reserve Bank of India, Commercial Banks, NBFCs
(ii) Insurance Companies, Pensions Funds.

5. Instruments in the Financial Market

(i) Money Market Instruments – Call money, Treasury Bills, Commercial Bills, Commercial Paper; Certificate of Deposits, Repo, Reverse Repo and Promissory Notes, Government Securities, Bonds, valuation of Bonds, Price Yield relationship.
(ii) Hedge Funds
(iii) Mutual Funds – Computation of NAV and Evaluation of Mutual fund’s Performance

6. Capital Markets

(i) Primary and secondary markets and its instruments
(ii) Optionally convertible debentures, Deep discount bonds
(iii) The rolling settlement, Clearinghouse operations
(iv) Dematerialization, Re-materialization and Depository system
(v) Initial Public Offering (IPO) / Follow on Public Offer (FPO) ; Book Building
(vi) Insider trading
(vii) Credit rating – Credit rating agencies in India

7. Commodity Exchange

(i) Regulatory Structure, Design of markets
(ii) Issues in Agricultural, Non-Agricultural Markets, Product design, Spot price and present practices of commodities exchanges
(iii) Intermediaries in the commodity exchanges & Clearinghouse operations, risk management related issues
(iv) Commodity Options on futures and its mechanism

Section C (Security Analysis & Portfolio Management) [25 Marks]:

Section C of CMA Final Course contains topic related to security analysis and portfolio management and covers 25% weightage. The detail contents have been described below.

8. Security Analysis & Portfolio Management including Equity Research

(i) Security analysis- Fundamental analysis- Economic analysis, Industry analysis, Company analysis, Technical analysis, Momentum analysis – arguments and criticisms
(ii) Market indicators, Support and resistance level, Patterns in stock price
(iii) Statistic models – Moving Averages, Bollinger bands
(iv) Theories on stock market movements – Dow Jones Theory
(v) Portfolio Management – meaning, objectives and basic principles
(vi) Portfolio Management theories – Efficient Market Hypothesis, Markowitz Model, Random Walk theory, CAPM, APT, Sharpe Index.
(vii) Portfolio Management – Construction of a Portfolio, Computing the Portfolio Total risk, Classification of risk into systematic and unsystematic, Minimization of Portfolio risk, Monitoring the Risk and Return of a portfolio
(viii) Portfolio Analysis – Security and Capital Market Line, Beta, Levered and Unlevered Beta

Section D (Financial Risk Management) [30 Marks]:

Section D covers three topics and it carries 30% weightage of Paper-14 of CMA Final Course. The contents of these topics have been explained below in detail.

9. Financial Risks

(i) Credit Risk, Liquidity Risk, Asset-based risk, Operational Risk
(ii) Foreign investment risk, Market Risk

10. Financial Derivatives – Instruments for Risk Management

(i) Forward & Futures – Meaning and Difference between Forwards and Future, Stock futures, Hedging through futures and benefits of Future market, Components of Future Price, Index based Futures, Margins in the derivatives market,
(ii) Options – Meaning, types of Options (Call & Put), Put-Call Parity theory, Determination of Option Premium, Strategies in Options market – spread, bull spread, bear spread, butterfly spread, combination, straddle, Strangle, Strips and Straps, Valuation of Options using- Option Equivalent, Stock Equivalent, Binomial tree approach, Risk neutral and Black- Scholes Model
(iii) Swaps and Swaptions – Meaning, types, features, benefits of Swaps, Interest rate swaps,
(iv) Interest rate derivatives – Meaning, Interest rate caps, interest rate collars, forward rate agreements

11. Financial Risk Management in International Operations

(i) Sources of Foreign currency, debt route, depository receipts, American Depository Receipts (ADRs) – sponsored, unsponsored, Global Depository Receipts (GDRs), Warrants, Foreign Currency Convertible Bonds (FCCBs), Euro Issues, Euro Commercial Paper, Euro Convertible Bonds, Note Issuance Facility, Participating Notes, Foreign Direct Investment
(ii) Foreign Exchange Market – Exchange Rate determination – Exchange Rate Forecasting- Purchasing Power Parity-Interest Rate Parity
(iii) Exchange Rate Risk management – Forex Hedging tools, exposure netting, currency forwards, cross-currency rollover, Currency futures, options, money market hedge, asset-liability management
(iv) Foreign Investment Analysis: International Portfolio Investment – International Capital Budgeting.

Paper 15: Strategic Cost Management – Decision Making

There are three sections in Paper-15 of CMA Final Course viz. A) Cost Management, B) Strategic Cost Management Tools and Techniques, and C) Strategic Cost Management – Application of Statistical Techniques in Business Decisions.

Section A (Cost Management) [20 Marks]:

Section A contains only one topic related to cost management which covers 20% weightage of Paper-15 of CMA Final Course.

1. Cost Management

(a) Developments in Cost Management:

(i) Life Cycle Costing
(ii) Target costing
(iii) Kaizen Costing
(iv) Value Analysis and Value Engineering
(v) Throughput Costing
(vi) Business Process Re-engineering
(vii) Back-flush Accounting
(viii) Lean Accounting
(ix) Socio-Economic Costing

(b)Cost Control and Cost Reduction – Basics, Process, Methods, and Techniques of Cost Reduction program.

Section B (Strategic Cost Management Tools and Techniques) [50 Marks]:

Section B contains four topics and covers 50% weightage of Paper-15 of the CMA Final Course. The detail contents have been explained hereunder.

2. Decision-Making Techniques

(a) Marginal Costing- Differential costing-CVP Analysis – Profit Volume Graphs – Contribution Approach
(b) Decisions involving alternative choices – Optimum utilization of resources – Make or Buy – Evaluation of Orders – Multiple scarce resource problems- Product sales pricing, etc.
(c) Pricing Decisions and Strategies – New Product Pricing, Use of Costs in Pricing, Sensitivity Analysis in Pricing Decisions; Monopoly Pricing vs. Competitive Pricing; Bottom Line Pricing
(d) Costing of Service Sector – methods, pricing, performance measurement
(e) Transfer Pricing – Objectives, Methods (Cost-Based, Market Price Based, Negotiated Pricing), Advantages and Disadvantages, Criteria for setting Transfer Prices, Transfer Price in different situations, Situations causing Conflicts and resolving the Conflicts;
(f) Relevant Cost Analysis: Relevant Cost, Irrelevant Costs – Sunk or Historical Cost, Committed Cost, Absorbed Cost, Situations where Fixed Costs become relevant for decision – making and its related implications
(g) Profitability Analysis – Product wise / Segment Wise / Customer wise

3. Standard Costing in Profit Planning

(a) Variance Analysis – Investigation of Variances, Planning and Operating Variances, Controllable / Non-controllable Variances, Relevant Cost Approach to Variance Analysis; Variance analysis under marginal costing and absorption costing; Activity Ratios; Application of budgetary control and Standard Costing in Profit planning, Standard Costing Vs Budgetary Control, Reconciliation of Actual Profit with Standard Profit and /or Budgeted Profit.
(b) Uniform Costing and Inter-firm comparison

4. Activity-Based Cost Management – JIT and ERP

(a) Activity-Based Cost Management – Concept, purpose, benefits, stages, relevance in decision-making and its application in Budgeting, Responsibility accounting, Traditional Vs. ABC System – comparative analysis
(b) JIT – introduction, Benefits, Use of JIT in measuring the Performance
(c) ERP and its applications in strategic cost management
(d) Bench Marking

5. Cost of Quality and Total Quality Management

(a) TQM – Basics, Stages, Principles, Control, Corrective actions
(b) PRAISE-Steps, Problems, implementation
(c) PARETO Analysis
(d) Quality Costs

Section C (Strategic Cost Management) [30 Marks]:

This covers 30% weightage of Paper-15 of CMA Final Course and contains topics related to the application of Statistical Techniques in Business Decisions.

6. Application of Operation Research and Statistical Tools in Strategic Decision Making

(a) Learning Curve,
(b) Linear Programming (Formulation only)
(c) Assignment,
(d) Transportation
(e) Simulation
(f) Network Analysis – CPM / PERT

Paper 16: Direct Tax Laws and International Taxation

There are three sections in Paper-16 of CMA Final Course viz. A) Advanced Direct Tax Laws, B) International Taxation, and C) Tax Practice and Procedures.

Section A (Advanced Direct Tax Laws):

Section A of Paper-16 of the CMA Final Course contains 10 topics and carries 50% weightage.

1. Return of Income & Assessment Procedure

(a) Return of Income
(b) Annual Information Return [Section 285BA]
(c) Assessment Procedure

2. Assessment of Various Entities & Tax Planning

(a) Assessment of Individuals
(b) Assessment of Hindu Undivided Family
(c) Assessment of Firms
(d) Assessment of Limited Liability Partnership (LLP)
(e) Assessment of Association of Persons / Body of Individuals
(f) Assessment of Companies
(g) Assessment of Co-operative Societies
(h) Assessment of Trusts
(i) Assessment of Mutual Association
(j) Alternate Minimum Tax and Minimum Alternate Tax
(k) Different Aspects of Direct Tax Planning

3. Clubbing of Income

The income of other person’s assessed/ clubbed in the hands of the Assessee

4. Set-Off and Carry forward and Set-off of losses

(a) Introduction
(b) Set off of a loss in the Same Year
(c) Carry forward and set off of a loss in Subsequent Years

5. Deduction in Computing Total Income

(a) Introduction
(b) Deductions from Gross Total Income

6. Business Restructuring

(a) Restructuring business
(b) Amalgamation
(c) The demerger, Reverse Merger
(d) Conversion of sole proprietary business to company
(e) Conversion of Firm into Company
(f) Conversion of Private Company/ Unlisted Public Company into Limited Liability Partnership (LLP)

7. Administrative procedures under Direct Taxation

(a) CBDT & Other Authorities
(b) Survey
(c) Search and Seizure
(d) Demand, Recovery, Assessment, appeal, revision, and settlement.
(e) E-commerce Transaction and liability in special cases
(f) Penalties, Fines and prosecution
(g) Income Computation and Disclosure Standards

8. Grievances Redressal Procedure

(a) Grievances Redressal Procedure
(b) Rectification
(c) Appeal and Appellate Hierarchy
(d) Revision

  1. Settlement of Cases

(a) Liability under special cases
(b) Settlement of Cases [Section 245A to 245L]
(c) Advance Ruling

10. Black Money Act, 2015

(a) Introduction to Black Money Act
(b) Highlights of Black Money Act

Section B (International Taxation) [30 Marks]:

Section B of Paper-16 of CMA Final Course covers topics related to International Taxation and carries 30% weightage.

11. Double Taxation Avoidance Agreements (DTAA)

(a) Double Taxation Relief – Agreement with Foreign Countries or Specified Territories [Section 90]
(b) Adoption by Central Government of agreement between Specified Associations for Double Taxation Relief [Section 90A]
(c) Countries with which no Agreement Exists [Section 91]
(d) Tax Residency Certificate [TRC] [Section 90 and Section 90A]

12. Transfer Pricing Issues

This topic also includes international and domestic transactions.

(a) International Taxation & Transfer Pricing issues
(b) Application of Generally Accepted Cost Accounting Principles and Techniques for determination of Arm’s Length Price
(c) Advance Pricing Agreement (APA) – Concept and Application

Section C (Tax Practice and Procedures) [20 Marks]:

Section C of Paper-16 of the CMA Final Course contains a case study related to tax practice and procedure.

13. Case Study Analysis

Note that the contents of Paper-16 of the CMA Final Course shall be reviewed every 6 months and shall be incorporated accordingly by ICAI.



There is five-section in Paper-17 of CMA Final Course viz. A) GAAP and Accounting Standards, B) Accounting of Business Combinations & Restructuring, C) Consolidated Financial Statements, D) Developments in Financial Reporting, and E) Government Accounting in India.

Section A (GAAP and Accounting Standards) [30 Marks]:

Section A of Paper-17 of the CMA Final Course contains related to Accounting Standards. This section carries 30% weightage.

1. Accounting Standards

(a) Generally Accepted Accounting Principles in India
(b) Accounting Standards (AS) – Applicability, Interpretation, Scope and Compliance
(c) International Financial Reporting Standards
(d) OverView of Ind AS
(e) Relative view of AS VS Ind AS VS IFRS

Section B (Accounting of Business Combinations & Restructuring) [20 Marks]:

Section B of Paper-17 of CA Final Course contains a topic related to Accounting of Business Combinations & Restructuring. This section carries 20% weightage.

2. Accounting for Business Combinations & Restructuring (as per Ind AS)

(a) Relevant Terms, Types of the merger, methods of accounting, treatment of Goodwill arising on the merger, Purchase consideration and settlement
(b) Accounting in books of vendor/ transferor and transferee
(c) Accounting for investment in subsidiary
(d) Accounting for Mergers / Acquisitions (including chain holdings, cross-holdings, multiple holdings)
(e) Corporate Financial restructuring, Reconstruction Schemes, De-merger, Reverse merger
(g) Notes to Accounts & related disclosures under amalgamation

Section C (Consolidated Financial Statements) [20 Marks]:

Section C of Paper-17 of the CMA Final Course contains topics related to Consolidated Financial Statements (CFS) and carries 20% weightage.

3. Group Financial Statements

(a) Concept of a group, Purposes of consolidated financial statements, Consolidation procedures, Minority interest, Goodwill, Treatment Pre-acquisition profit and Post-acquisition profit and concept of Fair value at the time of acquisition.
(b) Consolidation with two or more subsidiaries, consolidation with the foreign subsidiary.
(c) Consolidated Income Statement, Balance Sheet and Cash Flow Statements for Group of companies.
(d) Impact on group financial statements at the point of acquisition
(e) Treatment of investment in associates in consolidated financial statements. Compare and contrast acquisition and equity methods of accounting
(f) Treatment of investment in joint ventures in consolidated financial statements

Section D (Developments in Financial reporting and Other Item of reporting) [15 Marks]:

Section D of Paper-17 of the CMA Final Course contains four topics and carries 15% weightage. Detail contents of these topics have been explained below.

4. Recent trends in Financial reporting

Concept of Triple Bottom Line Reporting

5. Valuation, Accounting, and Reporting of Financial Instruments and others

(a) Recognition & Valuation Financial Instruments
(b) CENVAT / VAT Accounting
(c) NBFC – Provisioning Norms and Accounting
(d) Valuation of Shares
(e) Valuation of Goodwill

6. Share-Based payments

(a) Meaning, Equity settled transactions, Transaction with employees and non-employees
(b) Vesting conditions, Determination of Fair value of Options, Determination of ESOP Provision and Related Disclosure and settlement of ESOP

7. Reporting Through XBRL (Extended Business Reporting Language)

Section E (Government Accounting in India) [15 Marks]:

Section E covers topics related to Government Accounting procedures and Standards. This section carries 15% weightage.

8. Government Accounting

(a) General Principles and comparison with commercial accounting
(b) Role of Comptroller and Auditor General of India
(c) Role of Public Accounts Committee, Review of Accounts
(d) Government Accounting Standards issued by the Government Accounting Standards Advisory Board (GASAB)
(e) Government Accounting and Reporting

Paper 18: Indirect Tax Laws and Practice

There are two sections in Paper-18 of CMA Final Course viz. A) Advanced Indirect Tax – Laws & Practice and B) Tax Practice and Procedures.

Section A (Advanced Indirect Tax – Laws & Practice) [80 Marks]:

Section A covers five topics and carries 80% weightage of Paper-18 of the CMA Final Course.

1. Central Excise Act (20 Marks)

(a) The Central Excise Law – CENVAT Credit availment, Utilization, and Reversal
(b) Assessments, Demands, Refund, Exemptions, Power of Officers
(c) Interpretation of Show Cause Notice and Drafting of response against Show Cause Notice, Adjudication, Appeals, Settlement Commission, Penalties
(d) Central Excise Audit and Special Audit under 14A and 14AA of Central Excise Act
(e) Tariff Commission and other Tariff authorities

2. Customs Act (10 Marks)

(a) Valuation, Customs Procedures, Import and Export Procedures, Baggage, Exemptions, Warehousing, Demurrage, Project Import and Re-imports
(b) Penalties and Offences
(c) Anti-dumping Laws – Valuation under Anti-dumping laws, Safeguards, Countervailing Duties, Relevance of Cost Information, Application of Cost Accounting principles in assessment, Impact of taxation on WTO, Anti Dumping Measures.

3. Service Tax (30 Marks)

(a) Introduction, Nature of Service Tax, Service Provider and Service Receiver, Registration and related issues
(b) Negative List of Services, Exemptions, and Abatements
(c) Valuation of Taxable Services
(d) Payment of Service Tax, Returns of Service Tax
(e) CENVAT Credit Rules, 2004
(f) Point of Taxation Rules, 2012
(g) Place of Provision of Service Rules, 2012
(h) Administrative aspects of Service Tax – Return, Payment of Tax, Assessment
(i) Special Audit u/s 72A of the Finance Act, 1994 for Valuation of Taxable Services

4. Foreign Trade Policy, Export Promotion Schemes, EOU, SEZ, EXIM Policy (10 Marks)

(a) Foreign Trade Policy
(b) Export Promotion Schemes,
(c) Export Oriented Units (EOU)
(d) Duty Exemption Scheme and Duty Drawback
(e) Special Economic Zone (SEZ)

5. Central Sales Tax and VAT Act (10 Marks)

(a) Assessment of transactions under CST and VAT
(b) Returns and assessment procedures under Central Sales Tax (CST) and VAT Act

Section B (Tax Practice and Procedures) [20 Marks]:

Section B of Paper-18 of CMA Final Course contains case study related to tax practice and procedures. This section 20% weightage.

6. Case Study Analysis (20 Marks)

Note that the contents of Paper-18 of the CMA Final Course shall be reviewed every 6 months and shall be incorporated accordingly.


There is four sections in Paper-19 of CMA Final Course viz. A) Cost Audit, B) Management Audit, C) Internal Audit, Operational Audit and other related issues, and B) Case Study on Performance Analysis.

Section A (Cost Audit) [35 Marks]:

Section A covers six topics related to cost audit and carries 35% weightage.

1. Nature, Scope, utility, and Advantages of Cost Audit
2. Companies (Cost Records and Audit) Rules, 2014
3. Professional Ethics, Misconduct, Offences and Penalties
4. Cost Accounting Standards
5. Cost Auditing Assurance Standards
6. Format of Cost Audit Report – XBRL – Salient features

Section B (Management Audit) [15 Marks]:

Section B covers five topics related to management audit and carries 15% weightage of Paper-19 of the CMA Final Course. The detail contents have been described hereunder.

1. Management Reporting issues under Cost Audit – Performance Appraisal Report
2. Management Audit – Meaning, Nature, Scope, Need for Management Audit and Reporting under Management Audit
3. Energy Audit, Efficiency Audit, Propriety Audit, and Systems Audit
4. Evaluation of Corporate Image – Corporate Development Audit –Corporate Strategy Audit
5. Impact of environmental pollution: Social Cost-Benefit Analysis, Corporate Social Audit and
Safety audit.

Section C (Internal Audit, Operational Audit, and other related issues) [25 Marks]:

Section C covers topics relating to internal and operation audit-related issues and carries 25% weightage of Paper-19 of the CMA Final Course.

1. Concept of Internal Audit
2. Provisions of Internal Audit under Companies Act, 2013
3. Audit Planning, Audit Programme, Audit working papers, Reporting to Management
4. Receivables Audit, Audit of Hospitals, Hotels, Educational Institutions, Co-operative Societies, Self Help Groups, Non-Governmental Organizations (NGOs), corporations, Municipalities, Panchayats.

Section D (Case Study on Performance Analysis) [25 Marks]:

Section D of Paper-19 of CMA Final Course carries 25% weightage and covers a case study on the basis of the Companies Performance for managerial decision-making with reference to the following:

(a) Application of Ratios for assessment of performance.
(b) Waste Multiplier
(c) Utility Consumption i.e., Power, Fuel, etc.
(d) Capacity determination and Utilization
(e) Value Addition
(f) Inventory valuation
(g) Abnormal Events such as Strike, Lock-out and other factors
(h) Profitability analysis
(i) Reconciliations of Financial and Cost Records i.e., Profit, Taxation

Paper 20: Strategic Performance Management and Business Valuation

There are two section in Paper-20 of CMA Final Course viz. A) Strategic Performance Management and B) Business Valuation.

Section A (Strategic Performance Management) [50 Marks]:

Section A of Paper-20 of CMA Final Course covers four topics which carries 50% weightage. The contents have been described hereunder.

1. Conceptual Framework of Performance Management

(a) Performance Management- concept, components
(b) Performance, Productivity and Efficiency
(c) Financial performance analysis
(d) Supply Chain Management (SCM)
(e) Customer Relationship Management (CRM) & Customer Profitability analysis;

2. Performance Evaluation & Improvement Tools

(a) Balanced Score Card
(b) Du-Pont Analysis
(c) Benchmarking & Bench trending
(d) Six Sigma
(e) Statistical Quality Control (SQL)
(f) Plan- Do- Check- Action (PDCA)
(g) Management Information System
(h) Online Analytical processing tools
(i) Tools to Improve Productivity and Profitability – MRP I, MRP II and ERP
(j) Total Productivity Management
(k) Total Quality Management

3. Economic Efficiency of the firm –Performance Analysis

(a) Profit-maximization under the different market structure
(b) Market factors affecting Pricing decisions

4. Enterprise Risk Management

(a) Risk Management

(i) Risk Management – Introduction and objectives
(ii) Risk Measurement – Pooling, Diversification, Total Loss Distribution, Ruin Probability
(iii) Risk Analysis – Risk Mapping and Risk indicators

(b) Corporate Risk Management

(i) Enterprise Risk Management
(ii) Risk Retention or Reduction
(iii) Value at Risk (VAR)
(iv)Introduction to Capital Adequacy Norms in Banking Industry

(c) Corporate Failure

(i) Corporate Distress Analysis- Causes
(ii) Corporate Distress Prediction Models: Edward Altman’s Model, NCAER Models

Section B (Business Valuation) [50 Marks]:

Section B of Paper-20 of the CMA Final Course covers four topics and carries 50% weightage. The detail contents of these topics have been mentioned below.

5. Business Valuation Basics

(a) Meaning of Value, Valuation and Business Valuation
(b) Principles of Valuation, Valuation Bias, Types of Values
(c) Role of Business Valuation in Corporate Finance and Business Acquisitions

6. Valuation Models

(a) Non-Discounted Cash Flow Method (DCF) – Accounting based, Earnings based, Cash flow-based.
(b) Discounted Cash Flow Method
(c) Other methods of valuation

7. Valuation of Assets and Liabilities

(a) Valuation of Inventory
(b) Valuation of Investments – Bonds and Shares
(c) Valuation of Intangibles – Copy Rights, Good Will, Brand
(d) Valuation of Human Resources
(e) Value Added, Economic Value Added, Market Value Added

8. Valuation in Mergers and Acquisitions

(a) Meaning of Business Mergers and acquisitions and Types
(b) Application of valuation models for business mergers and acquisitions
(c) Determination of Exchange Ratio(Swap)or Purchase Consideration
(d) Synergistic benefits and distribution of synergy gains
(e) Recognition of Interest of various stakeholders
(f) Selection of appropriate cost of capital for valuation
(g) Impact of merger on the value of the share


CMA Final Best Resources 

CMA Foundation Video classes by Gold medalist ICMAI faculty

ICMAI CMA Telegram channel

No 1 CMA Foundation Android App

ICMAI CMA Final youtube channel



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