CPMA ( Certified Professional Management Accountant )

Module I

  1. External Financial Reporting Decisions(EFRD
  2. Planning, Budgeting, and Forecasting (PBF)
  3. Performance Management(PM)
  4. Cost Management(CM)

Module II

  1. Financial Statement Analysis
  2. Corporate finance
  3. Risk Management
  4. Investment Decisions

DETAILED SYLLABUS

Module I

A. External Financial Reporting Decisions(EFRD)

  • Financial statements
  • Balance sheet
  • Income statement
  • Statement of changes in equity
  • Statement of cash flows
  • Integrated reporting
  • Recognition, measurement, valuation, and disclosure
  • Asset valuation
  • Valuation of liabilities
  • Equity transactions
  • Revenue recognition
  • Income measurement
  • Divergence between U.S. GAAP and IFRS

 

B. Planning, Budgeting, and Forecasting (PBF)

This is a relatively wider section focusing on budgeting and covers following chapters

  • Strategic planning models and analytic techniques with Long-term mission and goals
  • Budgeting concepts
  • Operations and performance goals
  • Resource allocation
  • Forecasting techniques
  • Regression and Learning curve analysis
  • Budgeting methodologies
  • Annual business plans (master budgets)
  • Project, Activity-based and Zero-based budgeting
  • Annual profit plan and supporting schedules
  • Top-level planning and analysis
  • Pro forma income
  • Financial statement projections
  • Cash flow projections

C. Performance Management(PM)

This is a performance management section covering following topics.

  • Cost and variance measures
  • Comparison of actual to planned results
  • Use of flexible budgets to analyze performance
  • Management by exception
  • Use of standard cost systems
  • Analysis of variation from standard cost expectations
  • Responsibility canters and reporting segments
  • Transfer pricing
  • Reporting of organizational segments
  • Performance measures
  • Product profitability analysis
  • Business unit profitability analysis
  • Customer profitability analysis
  • Return on investment
  • Residual income
  • Investment base issues
  • Key performance indicators (KPIs)
  • Balanced score card

D. Cost Management(CM)

This section involves calculations and costing methodologies having following subsections

  • Measurement concepts
  • Cost behaviour and cost objects
  • Actual and normal costs
  • Standard costs
  • Absorption (full) costing
  • Variable (direct) costing
  • Joint and by-product costing
  • Costing systems
  • Job order costing
  • Process and activity-based costing
  • Life-cycle and verhead costs
  • Fixed and variable overhead expenses
  • Plant-wide vs. departmental overhead
  • Determination of allocation base
  • Allocation of service department costs
  • Supply chain management
  • Lean resource management techniques
  • Enterprise resource planning (ERP)
  • Theory of Constraints
  • Capacity management and analysis
  • Business process improvement
  • Value chain analysis and Value-added concepts
  • Process analysis, redesign, and standardization
  • Activity-based management
  • Continuous improvement concepts
  • Best practice analysis
  • Cost of quality analysis
  • Efficient accounting processes

 

Module II

A. Financial Statement Analysis(FSA)

This involves financial accounting with more emphasis on analytics and comparisons having following components

  • Basic financial statement analysis
  • Common size financial statements
  • Common base year financial statements
  • Financial ratios
  • Liquidity
  • Leverage
  • Activity
  • Market, Profitability and analysis
  • Income measurement analysis
  • Revenue analysis
  • Cost of sales and expense analysis
  • Variation analysis
  • Special issues
  • Impact of foreign operations
  • Effects of changing prices and inflation
  • Impact of changes in accounting treatment
  • Value and Income – Accounting and economic concepts
  • Earnings quality

Decision Analysis(DA)

This part involves the merge of management accounting with the decision making processes. It has following topics.

  • Cost/volume/profit analysis
  • Breakeven analysis
  • Profit performance and alternative operating levels
  • Analysis of multiple products
  • Marginal analysis
  • Opportunity costs, Sunk costs
  • Marginal costs and marginal revenue
  • Special orders and pricing
  • Sell or process further
  • Adding or dropping a segment
  • Capacity considerations
  • Pricing and Pricing methodologies
  • Target costing
  • Elasticity of demand
  • Product life-cycle considerations
  • Market structure considerations

 

C. Corporate Finance(CF)

This section having following areas which deals with the short term and long term financial management.

  • Risk and return
  • Calculating return
  • Types of risk Relationship between risk and return
  • Long-term financial management
  • Term structure of interest rates
  • Types of financial instruments
  • Cost of capital
  • Valuation of financial instruments
  • Raising capital
  • Financial markets and regulation
  • Market efficiency
  • Financial institutions
  • Initial and secondary public offerings
  • Dividend policy and share repurchases
  • Lease financing
  • Working capital management
  • Working capital terminology
  • Cash management
  • Marketable securities management
  • Accounts receivable management
  • Inventory management
  • Types of short-term credit
  • Short-term credit management
  • Corporate restructuring
  • Mergers and acquisitions
  • International finance
  • Fixed, flexible, and floating exchange rates
  • Managing transaction exposure
  • Financing international trade

 

D. Risk Management(RM)

This involves assessment, analysis and management of all kinds of risk that a management accountant has to handle for the company. It has following components.

  • Enterprise Risk
  • Types of risk
  • Risk identification and assessment
  • Risk mitigation strategies Managing risk

 

E. Investment Decisions(ED)

This section trains how to settle important decisions regarding speculations on various available options. It has following components

  • Capital budgeting process
  • Stages of capital budgeting
  • Incremental cash flows
  • Income tax considerations
  • Evaluating uncertainty
  • Capital investment analysis methods
  • Net present value
  • Internal rate of return
  • Payback
  • Comparison of investment analysis methods

 

Examination

Written examination for both modules ( 3 hours)

Pass grade: 50% 

60% Merit

80% Distinction

 

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