CMA presentation 9 26 06

Institute of Management Accountants IMAVision – The world’s leading association for management accounting and finance professionals... Management Accountants – Who are we?• Chief Accou

CMA Certification

What it Can Mean for You

Institute of Management Accountants (IMA)

Vision –

The world’s leading association

for management accounting and

finance professionals

Building Your Career

• CMA Certification Program

• Professional Development Opportunities

• Networking & Leadership Opportunities

• Local Chapter Meetings

• Virtual Communities

• IMA Ethics Center and Ethics Helpline

Management Accountants – Who are we?

• Chief Accounting Officer/DaimlerChrysler

• Chairman, a Hong Kong Bank

• KPMG consulting partner

• VP, Operational Excellence, Merck

• Third in command at the FBI

• VP, Investor Relations, Johnson & Johnson

Source: The Diverse Roles of Professional Accountants in Business,

IFAC, New York, November 2004, Available at www.ifac.org

• Act as trusted business advisors

• Support business management and strategic development

• Provide accurate information for better

decisions

• Act as conscience of last resort

• Work “hands on” to add value in organizations

• Plan for the long-term

Source: The Diverse Roles of Professional Accountants in Business,

IFAC, New York, November 2004, Available at www.ifac.org

Management Accountants – What do

we do?

IMA & the Profession

• Empower professionals inside

organizations who create economic value

• Foster unique role as the ones responsible for “building quality in”

• Outside audit works best when the

“inside” job is done correctly

• Ethical and responsible corporate

governance must come from the “inside”

CMA – CPA Comparison

• Rule based

• Public practice licensure

• Attesting to the accuracy of financial records

• Historical

• Referee

A CMA Professional Has…

• Demonstrated ability to work across the breadth and depth of the entire accounting process within organizations

• Proficiency in decision-making, planning, and

control functions

• Agreed to maintain professional competence

through annual continuing professional education

• Committed to a code of ethics

How Does CMA Certification Benefit You?

• Opportunity to assess and demonstrate

capabilities and expand knowledge base

• Distinguishes you from your peers and increases credibility and productivity

• Recognition of achievement

• Expanded career options and greater earning

potential

– CMAs earn 27% more than professionals without

certification (IMA’s 18 th Annual Salary Survey, June 2007)

Certification Benefits to the Company

• Identify motivated professionals for

hiring, recognition, and advancement

• Higher level of service and increased credibility among clients

• Achieve and maintain a high level of

knowledge, competence, and business understanding

Objective Validation of CMA Program

• CMA continues to be relevant to the on-the-job responsibilities of management accountants (IMA Job Analysis Study, 2006)

• Compared to U.S CPA, CFA, CMA in Canada, CMA

in U.K, and ACCA in U.K.

• Multi-national corporations are incorporating the CMA certification as part of their professional

development programs for employees

• CMA program is “valid, reliable, rigorous, and

fair”

2006 Job Analysis Study

• Periodic validation of content relevance as practice changes over time

• Survey determines current job tasks and skills required to perform these tasks

• Compare skills required to exam content

• CMA continues to be relevant to

practice

• Minor changes to content likely

implemented in 2008

Profile of a CMA Candidate

• 70% have a Bachelors Degree

• 29% have a Masters Degree

• 1% have a PhD

• 6% are CPA’s

• Average age: 34

CMAs – Who are we?

• CFO, Foundations Behavioral Health

• CFO/Treasurer, First Savings Bank

• Director of Finance & Accounting, Marriott

International

• Director of Technical Accounting & Reporting, Microsoft

• Finance Manager, Habitat for Humanity

• Financial Controller, Johnson & Johnson

• Vice President of Finance, Southeast

Corporate Federal Credit Union

Making Certification Work

• Commitment by senior management to continuing professional development

• Support for review programs

• Company support for CMA exam

process

• Tangible recognition for successful

completion

CMA Exam Overview

• Part 1: Business Analysis

- 3 hours, 110 multiple choice questions

• Part 2: Management Accounting and

Reporting

- 4 hours, 140 multiple choice questions

• Part 3: Strategic Management

- 3 hours, 110 multiple choice questions

These exams may be taken in any order but must

all be passed before registering for Part 4

Certification Exam Contents

Part 1: Business Analysis

Global Business 20%

Quantitative Methods 15%

Business Economics 25%

Internal

Controls

15%

Financial Statement Analysis 25%

Certification Exam Contents

Part 2: Management Accounting & Reporting

External Reporting 25%

Performance Measurement 20%

Cost Management 25%

Information Management 15%

Budget

Preparation

15%

Certification Exam Contents

Part 3: Strategic Management

Corporate Finance 25%

Decision Analysis 25%

Investment Decisions 20%

Strategic

Marketing

15%

Strategic Planning 15%

Certification Exam Contents

Part 4 – Business Applications

• Must complete Parts 1, 2, and 3 first

• 3 hours, 4-7 essays/problems

• All content from Parts 1, 2, and 3 included

• Plus: Ethics, Organization Management, Organization Communication, and

Behavioral Issues

• Computer-based but no immediate scoring

Becoming a CMA

• Member of IMA

• Apply for admission into certification program

• Register for certification exam

• Fulfill educational credentials

• Pass the certification exam

• Satisfy the experience requirement

• Comply with the IMA Statement of Ethical

Professional Practice

• View IMA’s Webinar, “Navigating through the CMA Program” at

www.imanet.org/certification_started.asp

• IMA Dues $195 per year

• $140 registration fee per exam part in U.S

• $175 per part overseas

• $125 entrance fee

- College students exempt from this fee

• $70 per part for college students

• Dues $39 per year for college students

Experience Requirement

• 2 years in a management accounting

or financial management position

or

• 2 years in public accounting

or

• 2 years in academia

Preparing for the CMA Exam

• Make a Personal Commitment to Self-study

• Sharpen Knowledge of Exam Topics

• Restore Test-taking Skills

• Take Self-administered or

Instructor-guided Review Courses

Remaining a CMA

• Maintain IMA Membership

• Meet the Continuing Education Requirement: 30

Hours/Year (Including 2 Hours in Ethics)

• Comply with the IMA Statement of Ethical Professional Practice

Take the Challenge

Become a CMA

www.imanet.org/certification