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The US CMA Exam 2024: What's on the Syllabus?

Wed May 15 2024

The US CMA Exam 2024: What's on the Syllabus?



Introduction:

Are you considering a career in management accounting? Perhaps you've heard about the Certified Management Accountant (CMA) designation and its significance in the financial world. Pursuing the CMA certification can indeed open doors to exciting opportunities, but understanding the syllabus and key areas of study is essential for success. This comprehensive guide aims to demystify the CMA syllabus, offering valuable insights into its key areas of study and providing actionable tips for effective preparation.

 

Table of Contents:

  1. Understanding the US CMA Certification 
  2. Breaking Down the US CMA 2024 Exam Syllabus 
  3. Effective Date of the Updated Syllabus 


Understanding the US CMA Certification:

Certified Management Accountant is a globally acclaimed designation in the field of accounting.This course is administered and offered by the Institute of Management Accountants (IMA), USA. Spanned over just 2 exams, CMA’s curriculum uses some of the most advanced testing techniques to test management accounting aspirants all over the world if they’re worthy of the designation CMA. Lakhs of aspirants take US CMA exams every year to grow into Management Accountants, Finance analysts, and many other roles in consulting firms, non-profit organizations, government agencies, audit firms, Big 4s, and many other top MNCs. They can earn a salary with a package of 6-10 LPA The US CMA certification is sought after across 170+ countries, including India.


Breaking Down the US CMA 2024 Exam Syllabus:

The US CMA exam has 2 parts having 100 MCQs and an exam duration of 4 hours each. It also has 2 essays in each part of the exam.

1. PART 1: Financial Planning, Performance, and Analytics

Modules (PART 1)

Updated Syllabus

1. External financial reporting decisions (15%)
  • Financial statements
  • Consolidated financial statements (NEW)
  • Recognition, measurement, and valuation
  • GAAP - IFRS differences

2. Planning, budgeting and forecasting (20%)
  • Strategic planning
  • Budgeting concepts
  • Forecasting techniques
  • Budgeting methodologies
  • Annual profit plan and supporting schedules
  • Top-level planning and analysis

3. Performance management (20%)
  • Cost and variance measures
  • Responsibility centers and reporting segments
  • Performance measures
  • Controllable margin (NEW)

4. Cost management (15%)
  • Measurement concepts
  • Costing systems
  • Overhead costs
  • Supply chain management
  • Business process improvement

5. Internal controls (15%)
  • Governance, risk, and compliance
  • System controls and security measures
  • Testing internal controls (NEW)
  • Control deficiency remediation (NEW)

6. Technology and analytics (15%)
  • Information systems
  • Data governance
  • Technology-enabled finance transformation
  • Data Analytics
  • Data management (NEW)
  • External Financial Reporting Decisions: This section covers 15% of the part which includes understanding financial statements, recognition, measurement, valuation, and disclosure.
  • Planning, Budgeting, and Forecasting: This section covers 20% of the part which includes concepts related to budgeting, forecasting techniques, budgeting methodologies, and annual profit plans.
  • Performance Management: This section covers 20% of the part. This area emphasizes performance measures, variance analysis, responsibility accounting, and management control systems.
  • Cost Management: This section covers 15% of part 1 and focuses on the cost concepts, costing systems, overhead costs, and cost-volume-profit analysis.
  • Internal Controls: This portion which covers 15% of part 1 includes the understanding of internal control frameworks, risk management, and governance.
  • Technology and Analytics: 15% of the part 1 syllabus infuses a CMA candidate with well-equipped practical implementation of analytics and to leverage technology and data analytics to build the best accounting practices fir any industry or business.

Few previous topics have been removed from the “Cost Management” section of Part 1, which includes:

  • Process Costing
  • Theory of Constraints
  • Activity-based Management
  • High-low Method
  • Efficient Accounting Systems

2. PART 2: Strategic Financial Management

Modules (PART 2)

Updated Syllabus

1. Financial statement analysis (20%)
  • Basic financial statement analysis
  • Financial ratios
  • Profitability analysis
  • Special issues
  • Financial trend analysis (NEW)

2. Corporate finance (20%)
  • Risk and return
  • Long-term financial management
  • Raising capital
  • Working capital management
  • Corporate restructuring
  • International Finance
  • Debt financing vs equity financing (NEW)

3. Decision analysis (25%)
  • Cost/volume/profit analysis
  • Marginal analysis
  • Pricing

4. Risk management (10%)
  • Enterprise risk

5. Investment decisions (10%)
  • Capital budgeting process
  • Capital investment analysis methods
  • Discount rates (NEW)
  • Profitability index (NEW)
  • Using sensitivity analysis in capital investment decision analysis (NEW)

6. Professional ethics (15%)
  • Business ethics
  • Ethical considerations for management accounting and financial management professionals
  • Ethical considerations for the organization
  • Data ethics (NEW)
  • Types of business fraud (NEW)
  • Governmental data protection regulations (NEW)
  • Financial Statement Analysis: 20% of part 2 from this section, help the candidates to analyse financial statements, evaluate financial ratios, and assess business performance.
  • Corporate Finance: This section includes 20% of the part 2 syllabus having topics such as capital budgeting, risk, and return, financing options, and dividend policy.
  • Business Decision Analysis: This includes 25% of the syllabus. Candidates need to understand relevant data concepts, cost-volume-profit analysis, and make various types of decisions based on financial analysis.
  • Enterprise Risk Management: This includes 10% of the Part 2 syllabus. This area covers risk assessment, risk mitigation strategies, and managing financial risk.
  • Capital Investment Decision: This includes 10% of the Part 2 syllabus. Candidates must understand concepts related to securities markets, valuation techniques, and portfolio management.
  • Professional Ethics: This section includes 15% of the syllabus. They get to learn the proper professional ethics and values that make them professionals of the highest standards. Students get to know the IMA’s statement of ethical professional practice, followed globally by all CMAs.

    In Part 2, sections C, D, and E, have been updated with prefix words, and the remaining titles and weightage percentages are the same. A few previous topics have been removed from the “Professional Ethics” section of Part 2, which includes:

  • Moral philosophies
  • Statement on management accounting, "Value and Ethics: From Inception to Practice
  • Facilitation payments


Effective Date of the Updated Syllabus:

The candidates will sit for the updated syllabus for the CMA exam from September 1, 2024. As you know, the candidates are allowed to take the exam in 3 testing windows scheduled every year: January 1-February 29; May 1-June 28; and September 1-October 31.


Conclusion:

Here, we have updated you on the latest format of the US CMA exam for the 2024 cycle. Start your journey towards becoming a Certified Management Accountant and make your mark in the field of management accounting. If you want to get a review course, contact Simandhar Education as we provide the best classes for the CMA exam preparation and assist you with the interview and placement process. To know more about CMA, join our masterclasses, and contact us at +91 7780273388 or visit our official website.