Join Your Exam WhatsApp group to get regular news, updates & study materials HOW TO JOIN

US CMA | CMA USA Part I External Financial Reporting Decisions

US CMA | CMA USA Part I  External Financial Reporting Decisions

US CMA | CMA USA Part I  External Financial Reporting Decisions : This section has been added to the CMA exam since January 2015. It covers the basis of financial accounting, including preparation of financial statements, valuation of assets and liabilities; operating and capital leases; impact of equity transactions; revenue recognition; income measurement; major differences between U.S. GAAP and IFRS.

Candidates are required to understand and remember the items in balance sheet, income statement, statement of changes in equity, statement of cash flows, and how they relate to each other.

If you have studied any accounting before, this should be a relatively straightforward section. I suspect that most of the questions are computational.

US CMA | CMA USA Part I  External Financial Reporting Decisions

US CMA | CMA USA Part I  External Financial Reporting Decisions :  CMA (Certified Management Accountant) awarded by IMA (Institute of Management Accountants, USA) is a global professional qualification. The CMA program is designed specifically to validate mastery of the advanced skills required to manage finance functions within an organisation, enabling you to deliver value in today’s complex

business environment. CMA’s play an integral role in the strategic decision-making process.

US CMA | CMA USA Part I  External Financial Reporting Decisions

US CMA | CMA USA Part I  External Financial Reporting Decisions : CMA Exam Part 1 is all about financial reporting, planning, performance and internal control. If you took CPA exam before, it feels like an intro version of FAR, a bit of AUD in terms of internal control, and a big, and more in-depth version of BEC.

There are five sections:

  • External financial reporting decisions (15%)
  • Planning, budgeting and forecasting (30%)
  • Performance management (20%)
  • Cost management (20%)
  • Internal control (15%)

 Planning, Budgeting and Forecasting

Budgeting is the biggest section in CMA Exam Part 1. It covers strategic planning process; budgeting concepts; annual profit plans and supporting schedules; types of budgets; top-level planning and analysis; and forecasting.

Candidates are expected to calculate the various items such as cost of goods sold, cost of goods manufactured and other items in the budget, as well as some conceptual questions such as the definition on budgeting. The coverage is more in-depth than that in Section A. The concepts are not difficult, but multiple choice questions can get lengthy and complex in some budgeting scenarios.

My tips for you is to read the questions slowly and get familiar with how questions are presented. Once you are used to the format and the type of calculations to be performed, the accuracy rate goes up dramatically.

Performance Management

In this section candidates are tested on the ways performance is evaluated in a corporation. This includes factors for performance evaluation, variance analysis based on flexible budgets and standard costs; responsibility accounting; key performance indicators and balanced scorecards.

Most of the evaluation tools should be familiar to those who work in accounting department in a corporation. There are certain elements, such as standard costs, that are used mostly in manufacturing companies as opposed to service oriented companies. If you are working in a financial institution or other service companies, you may want to spend more time in understanding the standard cost concept.

 Cost Management

This is also an important section representing 20% of the exam. The first part of this section covers cost concepts, flow and terminology. Then we move on to alternative cost objectives; cost measurement concepts; cost accumulation systems; overhead cost allocation; supply chain management and business process performance.

The focus of this section includes the various costing methodologies such as job order costing, process costing, and activity-based costing. You are expected to be able to complete a full set of calculation. You should also be familiar with topics such as lean manufacturing, ERP, theory of constraints, value chain analysis, ABM, continuous improvement and efficient accounting processes.

 Internal Controls

Internal controls is the last section representing 15% in CMA Exam Part 1. It covers corporate governance; internal control risk; internal control environment, procedures, and standards; responsibility and authority for internal auditing; types of audits; assessing the adequacy of the accounting information system controls; and business continuity planning.

Internal controls questions are almost all conceptual. They are not difficult to understand, but the questions could be ambiguous and it’s pretty hard if you have to pick the best answer when a few seem to be somewhat correct. Don’t get frustrated if you think you breeze through the section, only to find that you do poorly in the practice questions. It happened to me back then, but things start to click once I stayed focus and reworked on the tough questions that I did wrong previously.

US CMA | CMA USA Part I  External Financial Reporting Decisions

US CMA | CMA USA Part I  External Financial Reporting Decisions Require two years of professional experience in Management accounting and or financial management or in the areas specified by IMA. This requirement may be completed prior to or within seven years of passing the examination. IMA is the global brand and ICMA is the certifying body.

Why CMA?

  • CMA global qualification is awarded by IMA (Institute of Management Accountants) USA
  • Strong Knowledge Base in Management Accounting and Financial Management
  • Significant Career Progression, Credibility & Job Prospects
  • Builds leadership Skills, International perspective towards business
  • Short Duration: 6-8 months to qualify the exam
  • Both students as well as working professionals can opt for this course
  • MOU with Institute of Cost Accountants of India (ICAI)

Who can Opt for CMA (USA) ?

  • Any Graduates, B.Com, BBA, MBA  and students persuing graduation  can join the course
  • Charterted Accountants & Cost Accountants, ACCA/CIMA
  • Any Graduate Working Professional who wish to move to a Management Level/career progression

The CMA® (Certified Management Accountant) credential demonstrates your mastery of management accounting knowledge and skills. It assures employers of your competency on the job to improve organisational performance. Exclusively for IMA® (Institute of Management Accountants) members, the CMA credential drives the career potential of candidates beyond their peers. The CMA program is designed specifically to validate mastery of the advanced skills required to manage finance functions within an organisation, enabling you to deliver value in today’s complex business environment.

Topics and Examinations

Part I: Financial  Reporting, Planning, Performance and control- External Financial Reporting Decisions (15%), Planning, Budgeting & Forecasting
(30%), Performance Management (20%), Cost Management (20%), Internal Controls (15%)
Part II: Financial Decision Making -Financial Statement Analysis (25%), Corporate Finance
(20%), Decision Analysis  (20%) Risk Management (10%), Investment Decision (15%),
Professional Ethics (10%)

Exams 4 Hour Exam (100 multiple Choice and two 30 minutes essay questions
Computerised online exam in three sessions a year –Jan/ Feb, May/ June & Sept/Oct
Pass mark is 72%. 100 MCQs and two 30 minutes essay questions.

Each exam registration is valid for only one exam window. Students to take the exams before graduating.

The demand for CMAs in India is increasing with the arrival of MNCs and flow of off-shore establishments into our country.The positions CMA is most wanted are: Financial Analyst / Internal Auditor / Senior Executive / Finance Manager / Business Analyst / Pricing Analyst / Director- Finance / Chief Financial Officer (CFO)

US CMA | CMA USA Part I  External Financial Reporting Decisions

US CMA | CMA USA Part I  External Financial Reporting Decisions The requirements for earning the CMA certificate are as follows:

  • The candidate should have completed a bachelor’s degree course or earned a professional certification from a recognized college/ university/Institute
  • A work experience of at least 2 years in accounting, finance, or any of the related areas
  • Candidates must have successfully completed parts one and two of the CMA exam is held by IMA.

A CMA certification opens the possibilities for having a highly rewarding career in various companies. CMAs are experts in various finance and accounts related areas, and are highly skilled in practical applications as well. Hence, there is a demand for CMAs in a large number of companies. They also grow rapidly, both in terms of position as well as salary. A recent survey by IMA showed that the CMA’s in the USA draw up to 61% more salary than their non-CMA counterparts. Thus, by investing your time, money, and energy in completing the CMA course today, you will reap rich dividends for a lifetime.

US CMA | CMA USA Part I  External Financial Reporting Decisions

For More details on US CMA | CMA USA use the following Visit cakart.in downloads section

For more details on other examination go to the following www.cakart.in

Leave a comment

Your email address will not be published. Required fields are marked *