Certified Management Accountant (CMA) Course Details

Certified Management Accountant (CMA) – Part 1: Financial Reporting, Planning, Performance, and Control

External Financial Reporting Decisions

This portion of syllabus is mainly concered about preparation of financial statements: balance sheet, income statement, statement of changes in equity, statement of cash flows; 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.

Planning, Budgeting and Forecasting

Strategic planning process; budgeting concepts; annual profit plans and supporting schedules;
types of budgets, including activity-based budgeting, project budgeting, flexible budgeting; toplevel
planning and analysis; and forecasting, including quantitative methods such as regression
and learning curve analysis.

Performance Managementg

Factors to be analyzed for control and performance evaluation including revenues, costs,
profits, and investment in assets; variance analysis based on flexible budgets
and standard costs; responsibility accounting for revenue, cost, contribution and profit centers; key
performance indicators; and balanced scorecard.

Cost Management

Cost concepts, flows and terminology; alternative cost objectives; cost measurement concepts;
cost accumulation systems including job order costing, process costing, and activity-based costing;
overhead cost allocation; supply chain management and business process performance topics such
as lean manufacturing, ERP, theory of constraints, value chain analysis, ABM, continuous
improvement and efficient accounting processes.

Internal Controls

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.

Certified Management Accountant (CMA) – Part 2: Financial Decesion Making

Financial Statement Analysis

Calculation and interpretation of financial ratios; evaluate performance utilizing multiple ratios;
market value vs. book value; profitability analysis; analytical issues including impact of foreign
operations, effects of changing prices and inflation, off- balance sheet financing, and earnings
quality.

Corporate Finance

Types of risk; including credit, foreign exchange, interest rate, market, and political risk; capital
instruments for long-term financing; initial and secondary public offerings; dividend policy; cost
of capital; working capital management; raising capital; managing and financing working capital;
mergers and acquisitions; and international finance.

Decesion Analysis

Relevant data concepts; cost-volume-profit analysis; marginal analysis; make vs. buy decisions;
income tax implications for operational decision analysis; pricing methodologies including market
comparable, cost-based and value-based approaches.

Risk Management

Types of risk including business, hazard, financial, operational, strategic, legal compliance and
political risk; risk mitigation; risk management; risk analysis; and ERM.

Investment Decesions

Cash flow estimates; discounted cash flow concepts; net present value; internal rate of return,
discounted payback; payback; income tax implications for investment decisions; risk analysis; and
real options.

Professional Ethics

Ethical considerations for management accounting professionals and for the organization.