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CMA New Syllabus Applicable from 2017 exam onwards

CMA New Syllabus Applicable from 2017 exam onwards

CMA New Syllabus Applicable – ICWAI has released new syllabus 2017 applicable for CMA Foundation, Inter and Final. The First Examination under “ ICWAI Syllabus ” shall be conducted in Dec 2017. The Last Examination under “Syllabus 2012” shall be conducted in Dec 2017.

CMA New Syllabus Applicable from

CMA New Syllabus Applicable from

Scroll down and check CMA Final Important Topics for Dec 2017 exam

CMA New Syllabus

CMA New Syllabus 2017 For Foundation Inter and Final. Today ICWAI has released new syllabus 2017 applicable for CMA Foundation, Inter and Final. The First Examination under “ ICWAI Syllabus 2017” shall be conducted in Dec 2017. The Last Examination under “Syllabus 2012” shall be conducted in Dec 2017. Read below Changes in ICWAI Foundation, Inter and Final as per new syllabus 2017.

No. CMA (3)/2015 : In pursuance of sub-regulation (b) of Regulation 20B and Regulation 31 of the Cost and Works Accountants Regulations, 1959, it is hereby notified that in exercise of powers conferred by clause (a) of sub-section (2) of Section 15 of the Cost and Works Accountants Act,1959, the Council of the Institute of Cost Accountants of India at its 293rd Meeting held on 20/5/2015 has approved the “Syllabus 2017” for introduction w.e.f. 1st February, 2016 as annexed in Annexure 1. Students admitted to the Courses of the Institute w.e.f. 1st February,2017 shall pursue Courses under “Syllabus 2017”.

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

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

Institute of Cost and Works Accountants of India made some changes in ICWAI Foundation, Inter and Final syllabus from 2016.This issues with the approval of the competent authority.

Read below ICWAI Syllabus 2017 for CMA Foundation Exam.

Syllabus 2016 – Foundation Course
P1Fundamentals of Economics & Management
P2Fundamentals of Accounting
P3Fundamentals of Laws and Ethics
P4Fundamentals of Business Mathematics & Statistics
Foundation Course Examination: On-line MCQ Mode.Foundation Examinations – Four (4) times in a year in every three (3) months.

ICWAI Syllabus 2017 For CMA Inter

Read below ICWAI Syllabus 2017 for CMA Inter Exam.

Syllabus 2017 – Intermediate Course (Modules I, II,III & IV)

Module I

P 5 – Financial Accounting

P 6 – Laws, Ethics & Governance

Module II

P7 – Direct Tax and International Taxation

P8 – Cost Accounting & Financial Management

Module III

P9 – Operations Management

P10 – Cost & Management Accounting

Module IV

P11 – Indirect Taxation

P 12 – Company Accounts & Audit

CMA Final Important Topics for Dec 2017 exam

Paper 13: Corporate Laws & Compliance

There are three sections in the Paer-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:

a) Company Formation and Conversion

(i) Incorporation of private companies, public companies, company 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

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.

c) Dividends

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

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.

e) Board of Directors & Managerial Personnel

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

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.

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

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) Offences and Penalties
n) National Company Law Tribunal and Special Courts

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

Section B of Paper-13 of 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 there under 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 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 basic understanding of the following topics related to Insurance sector.

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

Section C (Corporate Governance) [20 Marks]:

In this section covers topics related to Corporate governance and other social responsibility of company. Section C has 20% weightage of Paper-13 of 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 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 Paer-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 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 Boarder leasing, Sale and Lease back

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

Section B of Paper-14 of 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 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) Rolling settlement, Clearing house 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 & Clearing house 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 contain 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 forward, cross currency roll over, 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 programme.

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

Section B contain four topics and covers 50% weightage of Paper-15 of 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

CMA New Syllabus Applicable from 2017 exam onwards

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