Abbreviation | CMA Canada |
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Formation | May 3, 1920; 99 years ago |
Legal status | Continued under the Canada Not-for-profit Corporations Act[1] |
Headquarters | Toronto, Ontario, Canada |
English, French |
Preparing & Registering for the Certified Management Accountant (CMA) Exam. Our course offers multiple tools to help you get ready for any question on the CMA exam.
The Society of Management Accountants of Canada (French: La Société des comptables en management du Canada), also known as Certified Management Accountants of Canada (French: Comptables en management accrédités du Canada) and CMA Canada, awards the Certified Management Accountant designation in Canada.
- 2History of the Society
Activities[edit]
Until September 2015,[2] CMA Canada, through its provincial and territorial affiliates, granted the CMA professional designation in accounting and was responsible for standards-setting, accreditation and the continuing professional development of CMAs.
CMAs applied expertise in accounting, management and strategy to ensure corporate accountability and help organizations maintain a long-term competitive advantage. In that regard, CMA Canada offered executive development programs, online courses, and knowledge management publications.[3]
Management Accounting Guidelines[4] and Management Accounting Practices[5] were published by CMA Canada to specify the best practice on key topics in management accounting. They were available for download free of charge or on CD for a nominal charge to CMAs, and could be purchased by non-members.[6] CPA Canada has taken over the programme, and has issued update guidance for many such matters under its own name,[7] although none of the documents appear to acknowledge their SMAC origins.
From 1953 to 2015, the Society operated a foundation that was dedicated to furthering research in the field of management accounting.[8]
History of the Society[edit]
The mission of the Society has closely tracked the evolution from cost accounting to management accounting in Canada, and its distinction from financial accounting:[9]
- 1920 - Incorporation of The Canadian Society of Cost Accountants, with head office in Hamilton, Ontario
- 1926 - Introduction of Cost and Management, the predecessor of CMA Magazine
- 1930 - Name changed to The Canadian Society of Cost Accountants and Industrial Engineers
- 1941 - Formation of provincial societies in Ontario and Quebec, with the power to grant the newly established professional designation of Registered Industrial Accountant ('RIA')
- 1948 - Name changed to Society of Industrial and Cost Accountants of Canada
- 1968 - Name changed to The Society of Industrial Accountants of Canada
- 1977 - Name changed to The Society of Management Accountants of Canada
- 1985 - Introduction of the professional designation of Certified Management Accountant ('CMA'), with existing RIAs being grandfathered in
- 2004 - CMA is registered as a trademark by CMA Canada
- 2006 - Certified Management Accountant is registered as a trademark by CMA Canada
- 2007 - Incorporation of the CMA Canada Research Foundation
- 2009 - Introduction of The National Standard for Public Accounting for Certified Management Accountants to govern the affairs of CMAs that have entered into public practice[10]
- 2014 - Unification of the profession within CPA Canada, with legislative implementation substantially complete as of May 2017.
Timeline[edit]
Timeline of Certified Management Accountants of Canada
Registered Industrial Accountant[c]
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Competencies, accreditation process and post-qualification development[edit]
CMAs are expected to undergo specific training and practical experience to achieve specified competencies in the area of strategic management accounting, which are intended to prepare them for senior leadership roles in their organizations.[19] There are six functional competencies and four enabling competencies in that regard:
Functional competencies
- Risk management and governance
Enabling competencies
- Problem solving and decision making
- Leadership and group dynamics
- Professionalism and ethical behaviour
While candidates may come from a variety of backgrounds, the CMA career path is expected to progress in the following manner:[19]
Stage | Phase | Nature |
Acquisition | Prior to passage of CMA Entrance Examination | In process of completing undergraduate studies, or 5–7 years thereafter. Already in junior to middle management level in their organization. |
Basic Proficiency | Acquisition of the CMA designation and the following five years thereafter | Already in middle management level, and progressively gaining more practical experience and responsibility. |
Advanced Proficiency | 5–10 years post-qualification | Early- to mid-career professionals, with most having achieved more senior positions within the middle management layer. A significant number hold introductory senior management positions in their area of specialization or in the organization as a whole. |
Mastery | 10–25 years post-qualification | Late-career professionals, operating in senior management roles. Most are either the highest-ranking financial officers in their organization or financial professionals with specialized knowledge in particular functional areas. A significant proportion of individuals are operating in the desired 'C' space - i.e., CEO, CFO, CRO or CIO - and some of these are leaders of large enterprises or significant strategic business units. |
CMA candidates (without advanced professional standing) must have obtained a university degree and have credits in a specified list of subjects, before they can write the CMA Entrance Examination.[20] Upon passing this stage, they then enter the Strategic Leadership Programme ('SLP'),[21] which has the following components:[22]
- Development Phase
- followed by the successful passing of the CMA Case Examination
- Application Phase
- leading to the successful preparation and presentation of the Board Report, containing detailed analysis and recommendations on a specified case study
- Completion of 24 months of relevant full-time progressive practical experience confirmed by the employer - of which at least 12 months must be concurrent with the SLP
- Candidates are expected to be expanding their on-the-job responsibilities while undertaking the SLP
Successful passage of the above will result in the granting of the CMA designation. After attaining the designation, there are specified requirements for continuous professional learning and development that must be undertaken to remain in good standing.[23]
Notable members[edit]
See also[edit]
Notes[edit]
- ^Originally created by the Dominion Association of Chartered Accountants, with membership originally restricted to chartered accountants,[11] in a move designed to prevent the General Accountants Association from moving into the growing field of cost accounting.[12]
- ^those members wishing to concentrate more on management accounting left to form the Controllers' Institute of Canada (later part of the Financial Executives Institute)[13]
- ^The designation was created once provincial societies began to be formed.[15] Originally known as 'Registered Industrial and Cost Accountant' or 'RIA' in Ontario[16] and 'Licentiate of the Cost and Management Institute' or 'LCMI' in Quebec,[17] it was simplified in some, but not all, provinces around 1967.[18]
References[edit]
- ^'Federal Corporation Information - 059859-3: The Society of Management Accountants of Canada'. ic.gc.ca. Retrieved June 6, 2017.
- ^'Guidelines for transitioning CMA students'. cpacanada.ca. Retrieved June 6, 2017.
- ^'Professional Development'. Archived from the original on October 10, 2014. Retrieved June 6, 2017.
- ^'Management Accounting Guidelines (MAGs)'. Archived from the original on October 17, 2014. Retrieved June 6, 2017.
- ^'Management Accounting Practices (MAPs)'. Archived from the original on April 25, 2012. Retrieved June 6, 2017.
- ^'Business Resources'. Archived from the original on October 8, 2014. Retrieved 2011-11-14.
- ^'Management accounting'. cpacanada.ca. Retrieved June 6, 2017.
- ^'Federal Corporation Information - 042154-5: The Research Foundation of the Society of Management Accountants of Canada'. ic.gc.ca. Retrieved June 6, 2017.
- ^Alan J.Richardson (2002-12-01). 'Professional dominance: The relationship between financial accounting and management accounting, 1926-1986'. Accounting Historians Journal. Retrieved 2011-11-08.
- ^'The National Standard for Public Accounting for Certified Management Accountants'. 2009-09-12. Retrieved 2011-11-08.
- ^'The Canadian Society of Cost Accountants'. The Canadian Chartered Accountant. Toronto: Dominion Association of Chartered Accountants. X (1): 31–34. July 1920. Retrieved June 24, 2014.
- ^Richardson 2000, p. 110.
- ^ abRichardson 1996, p. 90.
- ^J. Nelson Allan (1982). History of the Society of Management Accountants of Canada. Hamilton: Society of Management Accountants of Canada. p. 21. ISBN0-920212-45-X.
- ^Richardson 2000, p. 112.
- ^The Society of Industrial and Cost Accountants of Ontario Act, 1941, S.O. 1941, c. 77
- ^Loi constituant en corporation l'Institut de gestion industrielle et commerciale, S.Q. 1941, c. 95(in French)
- ^The Society of Industrial Accountants of Ontario Act, 1967, S.O. 1967, c. 129
- ^ ab'The CMA Competency Map'. Retrieved 2011-11-09.
- ^'CMA Entrance Examination'. Retrieved 2011-11-09.
- ^'CMA Canada Strategic Leadership Program'. Retrieved 2011-11-09.
- ^'The CMA Canada Accreditation Process'. Retrieved 2011-11-09.
- ^'The National Standard for Continuous Professional Learning and Development for certified Management Accountants'. Retrieved 2011-11-09.
Further reading[edit]
- Richardson, Alan J. (1996). 'Canada'. In Chatfield, Michael; Vangermeersch, Richard (eds.). History of Accounting: An International Encyclopedia. Routledge. ISBN0-8153-0809-4.
- Alan J. Richardson (2000). 'Building the Canadian Chartered Accountancy Profession: A Biography of George Edwards, FCA, CBE, LLD, 1861-1947'. Accounting Historians Journal. Academy of Accounting Historians. 27 (2): 87–116.
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Certified Management Accountant (CMA) is a professional certification credential in the management accounting and financial management fields. The certification signifies that the person possesses knowledge in the areas of financial planning, analysis, control, decision support, and professional ethics. The CMA is a U.S.-based, globally recognized certification offered by the Institute of Management Accountants.
CMA-certified professionals work inside organizations of all sizes, industries, and types, including manufacturing and services, public and private enterprises, not-for-profit organizations, academic institutions, Government entities (USA), and multinational corporations world wide. CMA has better Career in Management Accounting Globally than Cost Accountants of SAARC Countries.
To date, more than 70,000 CMAs have been certified in more than 140 countries.[citation needed] To obtain certification, candidates must pass a rigorous exam, meet an educational requirement, experience requirement, and demonstrate a commitment to continuous learning through continuing professional education (CPE).
- 1The Certified Management Accountant Exam
The Certified Management Accountant Exam[edit]
Prior to 2010, the CMA exam was organized into four parts: Business Analysis, Management Accounting and Reporting, Strategic Management. Since 2010, the exam has been condensed into two four-hour parts, covering largely the same material as the former four part exam with added emphasis on financial planning, analysis, control, and decision support.
Each exam consists of descriptive questions and two 30-minute essay questions. Candidates are given 3 hours to complete the multiple choice section and one hour to complete the essays. Candidates must show their work for the essay questions in order to receive credit. Parts 1 and 2 of the CMA exam are scored on a scale of 0-500 with a candidate's raw score converted to a uniform scaled score against all exam candidates. On this scale, a score of 360 represents the minimum passing scaled score.
Exam Content[edit]
Part 1 – Financial Reporting, Planning, Analytics, Performance, and Control.
- External financial reporting decisions (15%)
- Planning, budgeting and forecasting (20%)
- Performance management (20%)
- Technology and Analytics (15%)
- Cost management (15%)
- Internal controls (15%)
Part 2 – Strategic Financial Management
- Financial statement analysis (25%)
- Corporate finance (20%)
- Decision analysis (20%)
- Risk management (10%)
- Investment decisions (15%)
- Professional ethics (10%)
The exam is considered very rigorous and pass rates for the CMA exam have historically been low for both parts. Worldwide, the exam had a pass rate of 35% for Part 1 and 49% for Part 2 in 2014. Historic pass rates published by the IMA for the two part exam are as follows:[2][3][4][5][6]
Region | 2010 | 2011 | 2013 | 2014 | 2015 | 2016 | 2017 |
---|---|---|---|---|---|---|---|
Worldwide | 40% | 35% | 35% | 35% | 35% | 35% | 40% |
Asia Pacific | 44% | 42% | 41% | 41% | N/A | N/A | N/A |
Europe | 55% | 51% | 50% | 53% | N/A | N/A | N/A |
Middle East & Africa | 20% | 20% | 21% | 21% | N/A | N/A | N/A |
Americas | 54% | 53% | 51% | 53% | N/A | N/A | N/A |
Region | 2010 | 2011 | 2013 | 2014 | 2015 | 2016 | 2016 |
---|---|---|---|---|---|---|---|
Worldwide | 40% | 43% | 42% | 49% | 52% | 50% | 50% |
Asia Pacific | 47% | 51% | 45% | 55% | N/A | N/A | N/A |
Europe | 53% | 50% | 52% | 63% | N/A | N/A | N/A |
Middle East & Africa | 25% | 28% | 29% | 37% | N/A | N/A | N/A |
Americas | 47% | 53% | 54% | 57% | N/A | N/A | N/A |
- The IMA discontinued region breakouts of exam pass rates starting with the 2015 results.
Additional Certification Requirements[edit]
In addition to successfully passing the exams, CMA candidates must fulfill education and experience requirements in order to be certified:[7]
1. Bachelor's degree from an accredited college or university
2. Two continuous years of professional experience employing the principles of management accounting and financial management including:
- Preparation of financial statements
- Financial planning & analysis
- Monthly, quarterly, and year end close
- Auditing (external or internal)
- Budget preparation & reporting
- Manage general ledger and balance sheets
- Forecasting
- Company investment decision making
- Costing analysis
- Risk evaluation
3. For certified CMAs, 30 hours of CPE credits, including two hours of ethics, and annual IMA Membership are required to maintain active status.
See also[edit]
- Chartered Institute of Management Accountants (CIMA UK, Designation is ACMA or FCMA) - UK, Europe, International
- Certified Management Accountants of Canada (Designation as CMA, FCMA)
- Certified Public Accountant - USA
- Uniform Certified Public Accountant Examination - USA
- Chartered Financial Analyst - USA
- Institute of Cost and Management Accountants of Pakistan (ICMAP - Designation as ACMA, FCMA)
- Institute of Certified Management Accountants (ICMA Australia) - Australia, Asia-Pacific, International
- Institute of Cost Accountants of India (ICAI, Designation is ACMA or FCMA) - India
- Institute of Management Accountants (IMA USA) - USA, China, International
- Institute of Cost and Management Accountants of Bangladesh (Designation is ACMA or FCMA)ICMAB Bangladesh
- Institute of Certified Management Accountants (CMA SL Sri Lanka) - Sri Lanka <http://www.cma-srilanka.org/>
References[edit]
- ^'Home | IMA - The association of accountants and financial professionals working in business'. imanet.org. Retrieved 2017-09-13.
- ^'Archived copy'(PDF). Archived from the original(PDF) on 2016-03-04. Retrieved 2015-12-19.CS1 maint: archived copy as title (link)
- ^http://www.imanet.org/docs/default-source/cma-lib/pass_rates.pdf?sfvrsn=2] Archived 2015-12-22 at the Wayback Machine
- ^'Archived copy'(PDF). Archived from the original(PDF) on 2015-12-22. Retrieved 2015-12-20.CS1 maint: archived copy as title (link)
- ^'Archived copy'(PDF). Archived from the original(PDF) on 2015-12-22. Retrieved 2015-12-20.CS1 maint: archived copy as title (link)
- ^'Archived copy'(PDF). Archived from the original(PDF) on 2016-04-26. Retrieved 2016-04-17.CS1 maint: archived copy as title (link)
- ^'Archived copy'(PDF). Archived from the original(PDF) on 2015-12-22. Retrieved 2015-12-20.CS1 maint: archived copy as title (link)
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