FAQs on Cost & Management Accounting (CMA) from ICWAI / ICMAI / ICAI

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What does ICAI stand for ?

ICAI stands for The Institute of Cost Accountants of India. Earlier known as The Institute of Cost and Works Accountants of India was renamed as The Institute of Cost Accountants of India vide, The Cost and Works Accountants (Amendment) Act, 2011. It is :

 A premier professional body of Management Accountants in the country.

 A statutory body established on 28th May, 1959 under the Cost and Works Accountants Act, 1959 as amended by the Cost and Works Accountants (Amendment) Act, 2006 and Cost and Works Accountants (Amendment) Act, 2011.

 Under the administrative jurisdiction of Ministry of Corporate Affairs, Government of India.

 A member of the International Federation of Accountants (IFAC), The Confederation of Asian and Pacific Accountants (CAPA) and The South Asian Federation of Accountants (SAFA).

The ICAI has –

 It’s Headquarter at Kolkata.

 4 Regional offi ces at Kolkata, Mumbai, Chennai and New Delhi.

 92 Chapters all over India.

 6 Overseas centres

What are the functions of the ICAI ?

The functions of ICAI include

 Development and Regulation of the Cost and Management Accountancy profession in India.

 Conduct of Examinations for passing of Cost Accountancy Course.

 Promote and develop the adoption of scientific methods in Cost and Management Accountancy.

 Develop the professional body of members and equip them fully to discharge their functions in the area of Cost and Management.

 Exercise supervision over the entrants to the profession and to ensure strict adherence to the best ethical standards by its members.

 Organize seminars and conferences on the subjects of professional interest in diff erent parts of the country.

 Carry out research activities covering various economic spheres and the publishing of books and disseminating information of professional interest to help its members.

 Publication of highly reputed in house Professional Journal “The Management Accountant”.

 Regular interaction with the Government, Regulatory Authorities and Chambers of Commerce & Industry.

 Issuance of Cost Accounting Standards.

What is the role of Cost and Management Accountant?

A cost and management accountant specialises in navigating managerial decisions, stabilising budgets and standards, assessing operational efficiency and the eff ectiveness of production and service management, identifying accountability for profi t variance. His responsibilities include:

designing and implementing effective management information and control systems, planning costing systems and methods, inventory control incorporating mathematical models, investment analysis,

project management, internal audit, cost audit, diagnosis in the case of sick industries, fund management, pricing planning, interpreting information and data related to business activities and translating them in such a way as to guide the core management into taking the right decisions.

What are the career prospects for Cost and Management Accountants both in employment and in practice?

There is a sustained demand for qualified, trained and experienced cost management accountants for both the fields of employment and practice.

Cost and Management Accountants in Employment:

It has been felt beyond doubt that there has been increasing awareness amongst the business entrepreneurs of the most vital contribution made by cost and management accountancy services in the business houses to the attainment of business objectives. This has accentuated the demand for cost and management accounting services in all the sectors of economy. Many members of the Institute are holding top management positions, viz., Managing Director, Finance Director, Financial

Controller, Chief Accountant, Cost Controller, Marketing Manager, Chief Internal Auditor, CEO, CFO. Those managing their own business, have found in themselves a Manager and an Accountant to control and flourish their business. No wonder a Cost and Management Accountant can attain the highest ladder of professional career.

Cost and Management Accountants in Education:

University Grants Commission (UGC) has notified “UGC Regulations on Minimum Qualifi cations for Appointment of Teachers and Other Academic Staff in Universities and Colleges and Measures for the

Maintenance of Standards in Higher Education, 2010” vide its Circular No. F.3-1/2009 dated 30th June 2010. The Regulations prescribe the minimum qualification for appointment of teaching faculty in universities and colleges in the area of Management/ Business Administration. The qualifications specifi ed for appointment of Assistant Professor, Associate Professor and Professor in the above

area and Principal/Director/Head of the Institution include First Class Graduate and professionally qualified Cost and Management Accountant among other qualifications and subject to other requirements including qualifying NET/SLET/SET as the minimum eligibility condition for

recruitment and appointment of Assistant Professors.

Cost and Management Accountants in Government Department:

Realising the importance of the profession of the Cost and Management Accountancy in the economic development of the nation, the Central Government has constituted an all-India cadre known as Indian Cost Accounts Service (ICAS) at par with other Class-I services such as IAS, IFS etc. to advise the government in cost pricing and in framing the appropriate fiscal and tax policies.

Cost and Management Accountants in Practice:

CMAS can practice in the following areas :

 Maintenance of Cost record under Cost Accounting Records Rules u/s 209(1)(d) of Companies Act, 1956 in specified Industries; Cost Audit under section 233B of Companies Act, 1956.

 Valuation Audit under section 14A & 14AA of Central Excise Act, 1944.

 Special Audit under Customs Act, 1962.

 Audit under VAT Acts of various States.

 Certification of Cost of Production for Captive Consumption for the purpose of Excise Duty assessment.

 Certification under EXIM Policy; Certification of Consumption for Import Application.

 Tax Consultancy; Project Management Consultant.

 Surveyor and Loss Assessor under Insurance Act, 1938.

 Recovery consultant in Banking Sector.

 Business Valuation; Financial Services: Advisor to an Issue.

 Trustee, Executor, Administrator, Arbitrator, Receiver, Appraiser, Valuer.

 Taking up appointment that may be made by the Central or State Government, Court of Law, Labour Tribunals or any other statutory bodies, regulatory bodies etc.

Further Academic pursuits:

 A member of ICAI can get enrolled as a member of IMA USA.

 Recognised by the Academic Councils of many Universities in India for the purpose of admission of the Ph.D. courses in Commerce. It was resolved by Association of Indian Universities to accept Bachelor Degree-holders who have ICAI Qualification for registration as M.Phil. and Ph.D. candidates in commerce and allied disciplines.

 The MoU between CIMA (The Chartered Institute of Management Accountants), UK and ICAI introduces a new CIMA Professional Gateway examination (available from May 2009) for ICAI students

who have successfully completed the whole of the ICAI professional examination, enabling a ‘fast track’ route into CIMA’s Strategic level examinations, fi nal tests of professional competence and ultimately CIMA Membership.

What are the stages to be pursued to become a Cost and Management Accountant?

There are three stages to pursue Cost and Management Accountant course :

1. Foundation Course

2. Intermediate Course

3. Final Course

ADMISSION TO FOUNDATION COURSE

Minimum qualification is Class 10 examination or any examination equivalent thereto, recognised by the Institute.

REGISTRATION TO INTERMEDIATE COURSE

Minimum qualification: Passed ICAI Foundation/ Graduation in any discipline other than Fine Arts/ Foundation (Entry Level) Part I Examination of CAT of ICAI/ Foundation (Entry Level) Part I

Examination and Competency Level Part II Examination of CAT of ICAI.

Registration Period :

A registration is valid for a period of 7 (seven) years from the date of registration.

ADMISSION TO FINAL COURSE

A student who have passed Intermediate Examination of the Institute are eligible for admission to Final Course.

What is Compulsory Computer Training Programme?

No candidate shall be allowed to appear for both groups or for remaining group of Intermediate Examination unless he /she has successfully completed Computer Training Programmes as may be specified from time to time.

Exemption from Computer Training: A student having passed Bachelor of Engineering or Post Graduation in Computer Science or Computer Application or MBA (Systems) or PGDCA or MCA from Indian Institute of Management or a recognized University or an Institute recognized by All India Council for Technical Education or Department of Information Technology [formerly Department of Electronics (DOE)], Government of India, ‘A’ level Certificate Course of DOEACC may be exempted from Compulsory Computer Training.

Reciprocal Exemption from Computer Training: Reciprocal exemption is offered for Students/Members of Institute of Company Secretaries of India (ICSI) and Students/Members of the Institute of Cost Accountants of India (ICAI).

What is the last date for Completion of Computer Training?

A student appearing for the remaining group/both groups of the Intermediate Examination has to complete Computer Training before filling up the form for Intermediate Examination.

What is the Last Date of application for obtaining Computer Training Exemption?

The student desirous to seek Computer training exemption should make an application for exemption to the DOS at least 60 days prior to the start of the ICAI Examination in which he/she intends to appear.

What are the cut off dates for admission to Cost and Management Accountant Course?

Admission is open throughout the year. Examinations are held twice a year, once in June and another in December.

Last date for seeking admission/ enrolment to ICAI Foundation, Intermediate and Final Course for June term of examination is 5th December of previous year.

Last date for seeking admission/enrolment to ICAI Foundation, Intermediate and Final Course for December term of examination is 5th June of same year.

What are the course contents in Foundation/Intermediate/Final Course?

The subjects for Foundation Course are:

Paper 1 Organisation and Management Fundamentals

Paper 2 Accounting

Paper 3 Economics and Business Fundamentals

Paper 4 Business Mathematics and Statistics Fundamentals

The Intermediate Course consists of two Groups comprising of the following papers :

Group – I

Paper 5 Financial Accounting

Paper 6 Commercial & Industrial Laws and Auditing

Paper 7 Applied Direct Taxation

Group – II

Paper 8 Cost and Management Accounting

Paper 9 Operation Management & Information System

Paper 10 Applied Indirect Taxation

The Final Course consists of two Groups comprising of the following papers:

Group – III

Paper 11 Capital Market Analysis & Corporate Laws

Paper 12 Financial Management and International Finance

Paper 13 Management Accounting – Strategic Management

Paper 14 Indirect and Direct Tax Management

Group – IV

Paper 15 Management Accounting –

Enterprise Performance Management

Paper 16 Advanced Financial Accounting and Reporting

Paper 17 Cost Audit and Operational Audit

Paper 18 Business Valuation Management Comprehensive study material is provided for all the subjects by the Institute at the time of admission.

What is the standard of pass?

A candidate shall be declared to have passed in a group of an examination, if he secures minimum 40% marks in each paper of the group and an aggregate of 50% of total marks of non-exempted papers of that group.

An examinee :

Who appears for both Groups of Intermediate or Final Examination, with or without any exemption :

– obtains at least 40 percent marks in each paper appeared; and also

– obtains at least 50 percent marks in aggregate, taking both the Groups together shall be declared to have qualified Intermediate Course or Final Course, as the care may be.

What are exemptions available to the students?

On the basis of examination:

If a candidate is unsucessful in passing a group but secures 60% on more in any paper & minimum 40% marks in each of the remaining papers of the group, he shall be exempted in that paper(s) from appearing in the immediately successive three terms of examination.

On the basis of qualification:

Qualification prescribed for granting exemption: Company Secretaries (ICSI)

Exemption papers of ICAI under Revised Syllabus, 2008:

Foundation Course – Complete Exemption 

Intermediate Course

Paper 5 – Financial Accounting

Paper 7 – Applied Direct Taxation

Final Course

Paper 12 – Financial Management & International Finance

Paper 14 – Indirect & Direct Tax Management

Students desirous to seek the above exemptions shall apply in the prescribed format to the Director of Studies at least 60 days prior to the start of the ICAI examination in which he/she wishes to appear, alongwith copies of testimonials in support of the claim and the exemption fees of 200/- per paper by way of Demand Draft favouring “Th e Institute of Cost Accountants of India” payable at Kolkata.

What are the exemptions available under New Syllabus 2008 for students under 2002 syllabus?

Candidates having obtained exemption in a paper or papers of a Stage of Intermediate examination by virtue of passing a stage or earning exemption in individual paper (s) under Old Syllabus – 2002 will be

exempted from the corresponding paper (s) under the Revised Syllabus – 2008.

What training is required to be undertaken by the students pursuing Cost Accountant Examination?

The students are required to undergo the following trainings:

I. “Communications and Soft Skills” for Intermediate students

II. Compulsory Computer Training for Intermediate students for 100 hours

III. 7 days “Industry oriented Training Programme” aft er passing Intermediate course

IV. Modular training aft er passing Final course

V. 3 years practical training.

What is the cost of Prospectus for Cost & Management Accounting course?

Prospectus and application forms are available from the ICAI Headquarters, Regional Councils and Chapter offices spread all over the country. The cost is as follows:

Cash payment : Rs. 200/-

By Post/ Courier : DD/PO – Rs. 250/- (Within India)

What is the fee structure for joining the CMA course?

The fee for pursuing the CMA course is as follows:

Foundation Oral / Postal - Rs. 3,500

Intermediate (Revised Syllabus ’08)

Postal 15,700

Oral 19,700 (Includes Registration Fees of Rs. 500)

Final (Revised Syllabus ’08)

Postal 11,500

Oral 16,500

Computer Fee 3,400 (Additional 50 hrs. for the students migrating from Syllabus 2002 to Revised Syllabus 2008)

Modular Training Fee aft er passing Final Examination 4,000

DE-NOVO Fee 2,000

Revalidation Fee

Intermediate per group 800

Final per group 1,000

Computer Training Exemption Fee

Intermediate 100

Final 600

Subject Exemption Fee (per Paper) Rs. 200 (For CS and CAT Students)

Practical Training Exemption Fees 2,000

Physically challenged students are entitled for waiver/refund of fees subject to production of evidence in support of their disabilities. For details visit the website www.icwai.org. Fees for students registering from outside India, please refer to website.

What is Registration Afresh?

If a student fails to appear at least in one group of Intermediate Examination within three years from the date of his/her registration, the registration shall be cancelled aft er the said period. In such case, the student has to apply for afresh registration with a fee of ` 2,000/- through DD in favour of “The Institute of Cost Accountants of India” payable at Kolkata.

What is DE NOVO Registration?

A student whose registration has been cancelled on account of his/her failure to complete the Intermediate and Final examinations within a period of 7 (Seven) years from the date of his/her registration may, if he or she desires, apply for DE NOVO Registration in the prescribed form along with a payment of ` 2,000/- as DE NOVO Registration Fees. DE NOVO Registration is normally granted once only. Th e second time DE NOVO Registration may be granted if the student has passed at least one Group or earned exemption in at least two subjects.

What is Postal Coaching System of ICAI?

A student desirous of undergoing Postal Coaching is required to submit an application in the prescribed form to the respective Regional Council.

Study Materials along with 4 (four) test papers for each subject are provided to the students. A student has to complete the Postal Coaching by answering the test papers provided along with the study materials.

What is the last date of submission of answer sheet for Postal Coaching Clearance?

Last date of submission of answer sheet for Postal Coaching Clearance is as follows:

For June term of examination - 10th February of same year.

For December term of examination - 10th August of same year.

What is the Oral Coaching System of ICAI?

A student desirous of pursuing the course under Oral Coaching has to get admitted in a Regional council or Chapter or Recognised Oral Coaching Centre. Duration of Oral Coaching for Foundation course or a group in Intermediate/ Final Course is 4 months having a minimum of 72 hours for Lectures and Tutorial classes per subject. A student has to appear for written examination (of 3 hours duration) for each subject conducted by the Regional council/Chapter/ Recognised Oral Coaching Centre and has to secure a minimum of 40% marks in each subject.

What is Revalidation of Coaching?

- A Coaching Clearance is valid for three years.

- For revalidation of Coaching, the student has to submit the Coaching Revalidation Application with answers for one objective type test paper for each subject of the group to the Director of Studies along with Coaching Revalidation fees through a demand draft drawn on any scheduled bank in favour of “The Institute of Cost Accountants of India” payable at Kolkata as stated below:

Intermediate -per group – Rs. 800/-

Final – per group – Rs. 1000/-

- The pass marks in each test paper shall be 40%.

- To appear at June and December examination, answers to the test papers must reach the Director of Studies latest by 15th March and 15th September respectively.

What clearances are required to appear in the examination of Intermediate & Final Course of ICAI?

The following clearance are required for appearing in the examination:

Intermediate:

• Completion of Compulsory Computer Training – 100 hours

• Completion of Training on “Communication and Soft Skills”

Final:

• Completion of “Industry Oriented Training Programme”. Post Final Qualification:

• Students enrolled in Final Course w.e.f. 6-12-2011 shall undergo MT aft er qualifying Final Examination.

Where should a foreign student submit the admission form?

Student from foreign countries should submit the forms to the Headquarters only.

What are the cut off dates for the application for examination?

Examinations are held twice a year, once in June and another in December. Last dates for application for examination are as follows:

Term of Examination - Last Date

June term Examination - 10th April

December term Examination - 10th October

However, a candidate can apply for examination within 10 days after last date with a late fee of Rs. 300/- in addition to the prescribed fees.

What is the fee for examination?

Examination forms are available at Headquarters, Regional Councils, Chapters on payment of ` 50/- by cash or by DD for students desiring for appearing in Examination Centres in India and US$ 10 for students appearing in Overseas centres. Students may download the examination form from Institute website (www.icwai.org) and pay the cost of form along with examination fees as decided by council from time to time.

Fees to be paid through DD in favour of “The Institute of Cost Accountants of India” payable at Kolkata.

Foundation Single Group 1000

Intermediate Single Group 1000; Both Groups 1600

Final Single Group 1250; Both Groups 2250

When is one eligible for Membership of ICAI?

One is eligible for Membership of ICAI:

• Aft er passing of Final course and completion of modular training & practical training as provided under the regulations.

• Initially one is admitted as an Associate Member and can use the descriptive title “ACMA” aft er his/her name to indicate that he/she is an Associate Member of the Institute.

• Aft er fulfilling prescribed criteria, an ACMA can become a Fellow Member and can use the Letter ‘FCMA’ aft er his/her name to indicate that he/she is a Fellow Member of the Institute.

Does the Institute provide Placement Assistance?

The Institute and its Regional Councils and Chapters offer placement service to members and students.

• Campus interviews are arranged for the students by regions and chapters from time to time.

• Placement assistance is provided online on the Institute’s website www.icwai.org.

What are the examination centers of ICAI?

The ICAI has its 71 examination centers located in various cities all over India (Mumbai, Bangalore, Kolkata and Delhi has multiple centers) and two overseas centers at Dubai and Muscat.

What is the pay package offered to a fresh Cost and Management Accountant by reputed companies?

In recent campus interviews, the meritorious students, having become fresh Cost and Management Accountant, were picked up by regulators and reputed companies at very attractive salaries.

Does the Institute off er awards to the meritorious student?

The Institute awards Prizes to students with outstanding results. Certificate of Merit is given to students passing Intermediate/Final Examination taking all subjects together (ie. without any exemption) at one sitting.

[riy...@gmail.com]

I found this really useful.. Thanks for your post!

[riy...@gmail.com]

Can you please share average pass percentage of Inter of final exams? May be of last year?

[harry...@gmail.com]

Dear Sir/Madam

how to apply 100hrs compulsory computer Training Program , i am already completed the computer course (Ms-office , Tally ERP9 , & Access also ) at KIMT Institute and i have the certificate also any possibility to exemption for computer training program

by 

Haribabu