Gleim reviewed the changes to take effect May 1, 2010 to the CMA Exam. We compared the current format to the new format to better assist candidates as they decide what is the best path to take as they pursue the CMA designation.

New CMA Program

On November 24th, the ICMA announced that they will be changing he CMA Exam from a four-part exam to a two-part exam in 2010. Both Part 1 - Financial Planning, Performance and Control and Part 2 - Financial Decision Making will be 4 hours in length (3 hours for 100 multiple-choice questions and 1 hour for 2 essay questions).

Part 1 - Financial Planning, Performance and Control (Levels A, B, and C)
Planning, Budgeting and Forecasting (30%)
Performance Management (25%)
Cost Management (25%)
Internal Controls (15%)
Professional Ethics (5%)

Part 2 - Financial Decision Making (Levels A, B, and C)
Financial Statement Analysis (25%)
Corporate Finance (25%)
Decision Analysis and Risk Management (25%)
Investment Decisions (20%)
Professional Ethics (5%)

According to the Institute of Certified Management Accountants (ICMA), which is the body that prepares the CMA exam, the new two-part exam was reformatted to more closely align with the knowledge, skills, and abilities that a management accountant or financial professional in business uses on the job today. The new exam specifically focuses on testing critical skills in the areas of financial planning, analysis, control, and decision support. Geared towards aiding in the employability and profitability of its certification holders, the new CMA exam will allow employers to more readily understand the applicability of the CMA to a corporate career path and allow the candidate to more efficiently demonstrate the skills evidenced by the CMA in the workplace.

The CMA designation, which continues to be a career-enhancing credential valued and sought by employers, will be updated next spring to align even more closely with the critical knowledge and skills that management accountants and financial professionals use every day.

1. Micro- and Macroeconomics
2. Comparative Advantage and Trade Barriers
3. Linear Programming and Critical Path Method
4. Development of U.S. Accounting Standards
5. GAAS Audit Reports
6. Information Technology
7. Accounting and Reporting under U.S. GAAP
8. Strategic Analysis of Industries
9. Strategic Marketing
10. Organizational Behavior

Topics Added:

1. COSO and PCAOB influence on internal control
2. Effects of foreign exchange, off-balance-sheet financing, IFRS, and fair value accounting on financial reporting and ratios
3. Enterprise risk management
4. Raising capital
5. Corporate restructuring
6. IMA's Statement on Management Accounting, "Values and Ethics: From Inception to Practice"
7. Corporate Responsibility for Ethical Behavior

In the past, the ICMA described three skill levels and designated which topics would be tested at which levels. The three levels were as follows:

Level A: Requiring the skill levels of knowledge and comprehension.
Level B: Requiring the skill levels of knowledge, comprehension, application, and analysis.
Level C: Requiring all six skill levels, knowledge, comprehension, application, analysis, synthesis, and evaluation.

On the new exam, ALL TOPICS WILL BE TESTED AT LEVEL "C"

Sample Question: I have already started taking the CMA under the current exam, what does this mean for me and do I need to start over?

Answer: Candidates in the current four-part program should continue to prepare for the exams in the current format.

If you do not pass all four examination parts of the current CMA program by the deadline, December 31, 2010, you will automatically be transferred into the new program.

Candidates who are new to the exam and have not begun their exam preparations can still take the four-part exam and attempt to pass Parts 1-3 in January/February and Part 4 in April. You will be finished with the CMA Exam before testing under the new format even begins.

If you will not be able to complete all four parts by the end of 2010 follow the guidelines below:

Note: Completing Part 1 (Passed or Exempt) of the Current/Unchanged CMA Exam does not count towards any part or credit of any kind on the New CMA Exam. Candidates who have already passed or have been exempt from Part 1 should either complete Parts 2-4 of the Current/Unchanged Exam or choose from one of the other options listed above.

Candidates that have not passed Part 2 or Part 3 of the Current/Unchanged exam by the deadline will need to take both Parts 1 and 2 of the New Exam.

The deadline to complete the new CMA program for those transferring from the current program is February 28, 2013.

Visit the Gleim CMA Candidate Forum (https://www.gleim.com/account/forum/cma/index.php) regularly for updates as they become available.