by IMA
CMA Content Specification Outline 2022
The CMA 2022 is designed to take aspirants over a salary range of 16000 AED/month in UAE market due to its Analytics Approch
-"Financial Times"
-"Financial Times"
Important additional information about the Content Specification Outlines and the examinations is listed below.
1. The coverage percentage given for each major topic within each examination part represents the relative weight given to that topic in an examination part. The number of questions presented in each major topic area approximates this percentage.
2. Each examination will sample from the subject areas contained within each major topic area to meet the relative weight specifications. No relative weights have been assigned to the subject areas within each major topic. No inference should be made from the order in which the subject areas are listed or from the number of subject areas as to the relative weight or importance of any of the subjects.
3. Each major topic within each examination part has been assigned a coverage level designating the depth and breadth of topic coverage, ranging from an introductory knowledge of a subject area (Level A) to a thorough understanding of and ability to apply the essentials of a subject area (Level C). Detailed explanations of the coverage levels and the skills expected of candidates are presented below. 2 © Copyright 2020 Institute of Certified Management Accountants
4. The topics for Parts 1 and 2 have been selected to minimize the overlapping of subject areas among the examination parts. The topics within an examination part and the subject areas within the topics may be combined in individual questions.
5. With regard to U.S. federal income taxation issues, candidates will be expected to understand the impact of income taxes when reporting and analyzing financial results. In addition, the tax code provisions that impact decisions (e.g., depreciation, interest, etc.) will be tested.
6. Candidates for the CMA designation are assumed to have knowledge of the following: preparation of financial statements, business economics, time value of money concepts, statistics, and probability.
7. Parts 1 and 2 are four-hour exams and each contains 100 multiple-choice questions and two essay questions. Candidates will have three hours to complete the multiple-choice questions and one hour to complete the essay section. A small number of the multiple-choice questions on each exam are being validated for future use and will not count in the final score.
8. For the essay questions, both written and quantitative responses will be required. Candidates will be expected to present written answers that are responsive to the question asked, presented in a logical manner, and demonstrate an appropriate understanding of the subject matter.
1. The coverage percentage given for each major topic within each examination part represents the relative weight given to that topic in an examination part. The number of questions presented in each major topic area approximates this percentage.
2. Each examination will sample from the subject areas contained within each major topic area to meet the relative weight specifications. No relative weights have been assigned to the subject areas within each major topic. No inference should be made from the order in which the subject areas are listed or from the number of subject areas as to the relative weight or importance of any of the subjects.
3. Each major topic within each examination part has been assigned a coverage level designating the depth and breadth of topic coverage, ranging from an introductory knowledge of a subject area (Level A) to a thorough understanding of and ability to apply the essentials of a subject area (Level C). Detailed explanations of the coverage levels and the skills expected of candidates are presented below. 2 © Copyright 2020 Institute of Certified Management Accountants
4. The topics for Parts 1 and 2 have been selected to minimize the overlapping of subject areas among the examination parts. The topics within an examination part and the subject areas within the topics may be combined in individual questions.
5. With regard to U.S. federal income taxation issues, candidates will be expected to understand the impact of income taxes when reporting and analyzing financial results. In addition, the tax code provisions that impact decisions (e.g., depreciation, interest, etc.) will be tested.
6. Candidates for the CMA designation are assumed to have knowledge of the following: preparation of financial statements, business economics, time value of money concepts, statistics, and probability.
7. Parts 1 and 2 are four-hour exams and each contains 100 multiple-choice questions and two essay questions. Candidates will have three hours to complete the multiple-choice questions and one hour to complete the essay section. A small number of the multiple-choice questions on each exam are being validated for future use and will not count in the final score.
8. For the essay questions, both written and quantitative responses will be required. Candidates will be expected to present written answers that are responsive to the question asked, presented in a logical manner, and demonstrate an appropriate understanding of the subject matter.
Specification Outlines
Part 2 - Financial Planning, Performance, and Analytics
A. External Financial Reporting Decisions (15% - Levels A, B, and C)
1. Financial statements
a. Balance sheet
b. Income statement
c. Statement of changes in equity
d. Statement of cash flows
e. Integrated reporting
2. Recognition, measurement, valuation, and disclosure
a. Asset valuation
b. Valuation of liabilities
c. Equity transactions
d. Revenue recognition
e. Income measurement
f. Major differences between U.S. GAAP and IFRS
B. Planning, Budgeting, and Forecasting (20% - Levels A, B, and C)
1. Strategic planning
a. Analysis of external and internal factors affecting strategy
b. Long-term mission and goals
c. Alignment of tactics with long-term strategic goals
d. Strategic planning models and analytical techniques
e. Characteristics of a successful strategic planning process
2. Budgeting concepts
a. Operations and performance goals
b. Characteristics of a successful budget process
c. Resource allocation
d. Other budgeting concepts
3. Forecasting techniques
a. Regression analysis
b. Learning curve analysis
c. Expected value
4. Budgeting methodologies
a. Annual business plans (master budgets)
b. Project budgeting
c. Activity-based budgeting
d. Zero-based budgeting
e. Continuous (rolling) budgets
f. Flexible budgeting
5. Annual profit plan and supporting schedules
a. Operational budgets
b. Financial budgets
c. Capital budgets
6. Top-level planning and analysis
a. Pro forma income
b. Financial statement projections
c. Cash flow projections
C. Performance Management (20% - Levels A, B, and C)
1. Cost and variance measures
a. Comparison of actual to planned results
b. Use of flexible budgets to analyze performance
c. Management by exception
d. Use of standard cost systems
e. Analysis of variation from standard cost expectations
2. Responsibility centers and reporting segments
a. Types of responsibility centers
b. Transfer pricing
c. Reporting of organizational segments
3. Performance measures
a. Product profitability analysis
b. Business unit profitability analysis
c. Customer profitability analysis
d. Return on investment
e. Residual income
f. Investment base issues
g. Key performance indicators (KPIs)
h. Balanced scorecard
D. Cost Management (15% - Levels A, B, and C)
1. Measurement concepts
a. Cost behavior and cost objects
b. Actual and normal costs
c. Standard costs
d. Absorption (full) costing
e. Variable (direct) costing
f. Joint and by-product costing
2. Costing systems
a. Job order costing
b. Process costing
c. Activity-based costing
d. Life-cycle costing
3. Overhead costs
a. Fixed and variable overhead expenses
b. Plant-wide vs. departmental overhead
c. Determination of allocation base
d. Allocation of service department costs
4. Supply chain management
a. Lean resource management techniques
b. Enterprise resource planning (ERP)
c. Theory of Constraints
d. Capacity management and analysis
5. Business process improvement
a. Value chain analysis
b. Value-added concepts
c. Process analysis, redesign, and standardization
d. Activity-based management
e. Continuous improvement concepts
f. Best practice analysis
g. Cost of quality analysis
h. Efficient accounting processes
E. Internal Controls (15% - Levels A, B, and C)
1. Governance, risk, and compliance
a. Internal control structure and management philosophy
b. Internal control policies for safeguarding and assurance
c. Internal control risk
d. Corporate governance
e. External audit requirements
2. System controls and security measures
a. General accounting system controls
b. Application and transaction controls
c. Network controls
d. Backup controls
e. Business continuity planning
F. Technology and Analytics (15% - Levels A, B, and C)
1. Information systems
a. Accounting information systems
b. Enterprise resource planning systems
c. Enterprise performance management systems
2. Data governance
a. Data policies and procedures
b. Life cycle of data
c. Controls against security breaches
3. Technology-enabled finance transformation
a. System development life cycle
b. Process automation
c. Innovative applications
4. Data analytics
a. Business intelligence
b. Data mining
c. Analytic tools
d. Data visualization
Part 2 - Strategic Financial Management
A. Financial Statement Analysis (20% - Levels A, B, and C)
1. Basic financial statement analysis
a. Common size financial statements
b. Common base year financial statements
2. Financial ratios
a. Liquidity
b. Leverage
c. Activity
d. Profitability
e. Market
3. Profitability analysis
a. Income measurement analysis
b. Revenue analysis
c. Cost of sales analysis
d. Expense analysis
e. Variation analysis
4. Special issues
a. Impact of foreign operations
b. Effects of changing prices and inflation
c. Impact of changes in accounting treatment
d. Accounting and economic concepts of value and income
e. Earnings quality
B. Corporate Finance (20% - Levels A, B, and C)
1. Risk and return
a. Calculating return
b. Types of risk
c. Relationship between risk and return
2. Long-term financial management
a. Term structure of interest rates
b. Types of financial instruments
c. Cost of capital
d. Valuation of financial instruments
3. Raising capital
a. Financial markets and regulation
b. Market efficiency
c. Financial institutions
d. Initial and secondary public offerings
e. Dividend policy and share repurchases
f. Lease financing
4. Working capital management
a. Working capital terminology
b. Cash management
c. Marketable securities management
d. Accounts receivable management
e. Inventory management
f. Types of short-term credit
g. Short-term credit management
5. Corporate restructuring
a. Mergers and acquisitions
b. Other forms of restructuring
6. International finance
a. Fixed, flexible, and floating exchange rates
b. Managing transaction exposure
c. Financing international trade
C. Decision Analysis (25% - Levels A, B, and C)
1. Cost/volume/profit analysis
a. Breakeven analysis
b. Profit performance and alternative operating levels
c. Analysis of multiple products
2. Marginal analysis
a. Sunk costs, opportunity costs, and other related concepts
b. Marginal costs and marginal revenue
c. Special orders and pricing
d. Make vs. buy
e. Sell or process further
f. Add or drop a segment
g. Capacity considerations
3. Pricing
a. Pricing methodologies
b. Target costing
c. Elasticity of demand
d. Product life-cycle considerations
e. Market structure considerations
D. Risk Management (10% - Levels A, B, and C)
1. Enterprise risk
a. Types of risk
b. Risk identification and assessment
c. Risk mitigation strategies
d. Managing risk
E. Investment Decisions (10% - Levels A, B, and C)
1. Capital budgeting process
a. Stages of capital budgeting
b. Incremental cash flows
c. Income tax considerations
d. Evaluating uncertainty
2. Capital investment analysis methods
a. Net present value
b. Internal rate of return
c. Payback
d. Comparison of investment analysis methods
F. Professional Ethics (15% - Levels A, B, and C)
1. Business ethics
a. Moral philosophies and values
b. Ethical decision making
2. Ethical considerations for management accounting and financial management professionals
a. IMA's Statement of Ethical Professional Practice
b. Fraud triangle
c. Evaluation and resolution of ethical issues
3. Ethical considerations for the organization
a. Organizational factors and ethical culture
b. IMA's Statement on Management Accounting, "Values and Ethics: From Inception to Practice"
c. Ethical leadership
d. Legal compliance
e. Responsibility for ethical conduct
f. Sustainability and social responsibility
A. External Financial Reporting Decisions (15% - Levels A, B, and C)
1. Financial statements
a. Balance sheet
b. Income statement
c. Statement of changes in equity
d. Statement of cash flows
e. Integrated reporting
2. Recognition, measurement, valuation, and disclosure
a. Asset valuation
b. Valuation of liabilities
c. Equity transactions
d. Revenue recognition
e. Income measurement
f. Major differences between U.S. GAAP and IFRS
B. Planning, Budgeting, and Forecasting (20% - Levels A, B, and C)
1. Strategic planning
a. Analysis of external and internal factors affecting strategy
b. Long-term mission and goals
c. Alignment of tactics with long-term strategic goals
d. Strategic planning models and analytical techniques
e. Characteristics of a successful strategic planning process
2. Budgeting concepts
a. Operations and performance goals
b. Characteristics of a successful budget process
c. Resource allocation
d. Other budgeting concepts
3. Forecasting techniques
a. Regression analysis
b. Learning curve analysis
c. Expected value
4. Budgeting methodologies
a. Annual business plans (master budgets)
b. Project budgeting
c. Activity-based budgeting
d. Zero-based budgeting
e. Continuous (rolling) budgets
f. Flexible budgeting
5. Annual profit plan and supporting schedules
a. Operational budgets
b. Financial budgets
c. Capital budgets
6. Top-level planning and analysis
a. Pro forma income
b. Financial statement projections
c. Cash flow projections
C. Performance Management (20% - Levels A, B, and C)
1. Cost and variance measures
a. Comparison of actual to planned results
b. Use of flexible budgets to analyze performance
c. Management by exception
d. Use of standard cost systems
e. Analysis of variation from standard cost expectations
2. Responsibility centers and reporting segments
a. Types of responsibility centers
b. Transfer pricing
c. Reporting of organizational segments
3. Performance measures
a. Product profitability analysis
b. Business unit profitability analysis
c. Customer profitability analysis
d. Return on investment
e. Residual income
f. Investment base issues
g. Key performance indicators (KPIs)
h. Balanced scorecard
D. Cost Management (15% - Levels A, B, and C)
1. Measurement concepts
a. Cost behavior and cost objects
b. Actual and normal costs
c. Standard costs
d. Absorption (full) costing
e. Variable (direct) costing
f. Joint and by-product costing
2. Costing systems
a. Job order costing
b. Process costing
c. Activity-based costing
d. Life-cycle costing
3. Overhead costs
a. Fixed and variable overhead expenses
b. Plant-wide vs. departmental overhead
c. Determination of allocation base
d. Allocation of service department costs
4. Supply chain management
a. Lean resource management techniques
b. Enterprise resource planning (ERP)
c. Theory of Constraints
d. Capacity management and analysis
5. Business process improvement
a. Value chain analysis
b. Value-added concepts
c. Process analysis, redesign, and standardization
d. Activity-based management
e. Continuous improvement concepts
f. Best practice analysis
g. Cost of quality analysis
h. Efficient accounting processes
E. Internal Controls (15% - Levels A, B, and C)
1. Governance, risk, and compliance
a. Internal control structure and management philosophy
b. Internal control policies for safeguarding and assurance
c. Internal control risk
d. Corporate governance
e. External audit requirements
2. System controls and security measures
a. General accounting system controls
b. Application and transaction controls
c. Network controls
d. Backup controls
e. Business continuity planning
F. Technology and Analytics (15% - Levels A, B, and C)
1. Information systems
a. Accounting information systems
b. Enterprise resource planning systems
c. Enterprise performance management systems
2. Data governance
a. Data policies and procedures
b. Life cycle of data
c. Controls against security breaches
3. Technology-enabled finance transformation
a. System development life cycle
b. Process automation
c. Innovative applications
4. Data analytics
a. Business intelligence
b. Data mining
c. Analytic tools
d. Data visualization
Part 2 - Strategic Financial Management
A. Financial Statement Analysis (20% - Levels A, B, and C)
1. Basic financial statement analysis
a. Common size financial statements
b. Common base year financial statements
2. Financial ratios
a. Liquidity
b. Leverage
c. Activity
d. Profitability
e. Market
3. Profitability analysis
a. Income measurement analysis
b. Revenue analysis
c. Cost of sales analysis
d. Expense analysis
e. Variation analysis
4. Special issues
a. Impact of foreign operations
b. Effects of changing prices and inflation
c. Impact of changes in accounting treatment
d. Accounting and economic concepts of value and income
e. Earnings quality
B. Corporate Finance (20% - Levels A, B, and C)
1. Risk and return
a. Calculating return
b. Types of risk
c. Relationship between risk and return
2. Long-term financial management
a. Term structure of interest rates
b. Types of financial instruments
c. Cost of capital
d. Valuation of financial instruments
3. Raising capital
a. Financial markets and regulation
b. Market efficiency
c. Financial institutions
d. Initial and secondary public offerings
e. Dividend policy and share repurchases
f. Lease financing
4. Working capital management
a. Working capital terminology
b. Cash management
c. Marketable securities management
d. Accounts receivable management
e. Inventory management
f. Types of short-term credit
g. Short-term credit management
5. Corporate restructuring
a. Mergers and acquisitions
b. Other forms of restructuring
6. International finance
a. Fixed, flexible, and floating exchange rates
b. Managing transaction exposure
c. Financing international trade
C. Decision Analysis (25% - Levels A, B, and C)
1. Cost/volume/profit analysis
a. Breakeven analysis
b. Profit performance and alternative operating levels
c. Analysis of multiple products
2. Marginal analysis
a. Sunk costs, opportunity costs, and other related concepts
b. Marginal costs and marginal revenue
c. Special orders and pricing
d. Make vs. buy
e. Sell or process further
f. Add or drop a segment
g. Capacity considerations
3. Pricing
a. Pricing methodologies
b. Target costing
c. Elasticity of demand
d. Product life-cycle considerations
e. Market structure considerations
D. Risk Management (10% - Levels A, B, and C)
1. Enterprise risk
a. Types of risk
b. Risk identification and assessment
c. Risk mitigation strategies
d. Managing risk
E. Investment Decisions (10% - Levels A, B, and C)
1. Capital budgeting process
a. Stages of capital budgeting
b. Incremental cash flows
c. Income tax considerations
d. Evaluating uncertainty
2. Capital investment analysis methods
a. Net present value
b. Internal rate of return
c. Payback
d. Comparison of investment analysis methods
F. Professional Ethics (15% - Levels A, B, and C)
1. Business ethics
a. Moral philosophies and values
b. Ethical decision making
2. Ethical considerations for management accounting and financial management professionals
a. IMA's Statement of Ethical Professional Practice
b. Fraud triangle
c. Evaluation and resolution of ethical issues
3. Ethical considerations for the organization
a. Organizational factors and ethical culture
b. IMA's Statement on Management Accounting, "Values and Ethics: From Inception to Practice"
c. Ethical leadership
d. Legal compliance
e. Responsibility for ethical conduct
f. Sustainability and social responsibility
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