#cmaexamchanges

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By analyzing comprehensive Jobs, CMA exam is changing in 2020. The content of CMA Exam is adjusted so that it will be valid, relevant and continue to be current.

Follow the link to know about changes: http://bit.ly/2TjSMbf

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CMA USA 2020 Exam Changes – an overview by Hieducare

The fields of finance and accounting are thriving in the current scenario. Be it insurance and real estate business or medical and health service sectors; the need to have an individual with broad nature of required skills and experience is ever-growing. This is where the CMA (Certified Management Accountant) comes into play.

A number of you might not be familiar with this particular field and related information. It would be beneficial for us to have a brief introduction of CMA before indulging ourselves into more in-depth information regarding the same.

Introduction to CMA USA

CMA is a certification in the fields of financial accounting and strategic management. Unlike others, it is a globally-recognized certificate that has a particular emphasis on corporate finance and managerial accounting. It is offered by Management Accountants (IMA).

However, awards are given out by another division that goes by the name of the Institute of Certified Management Accountants (ICMA). It is a division within IMA. New Jersey is the headquarters for IMA, and currently, it is available in a total of 140 countries throughout the world.

With such high expectations and skills, it is understood that one cannot become a certified CMA just out will. The CMA exam is precisely for this purpose. Initially, CMA was introduced by ICMA to assess a candidate’s knowledge and skills required for the role of management accounting. However, over the past few years, the functions of CMAs have changed; hence, it is only fair to have changes integrated into the exam as well.

One of the significant changes that one can see in CMA roles is regarding the reliance on software and technology that especially involves tasks regarding number-crushing. The testing agency is more focused in the direction of analyzing abilities and reporting on the said numbers.

In a nutshell, more centralization is given to strategic analysis and advising. Hence, changes made in the exam would reflect upon the above parameters.

The exam is conducted in two parts- Part 1 and Part 2. These parts would be affected by the changes that are said to be implemented from 2020 onwards. Let’s move on and discuss the differences in Part 1 and Part 2.

CMA USA 2020 Changes in Part 1 and Part 2

There have been changes in both the parts of the CMA exam. Let’s see them one by one.

CMA Exam Part 1 Changes

Beginning from 2020, Part 1 of the examination now includes a new section which is Domain F: Technology and Analytics. This section is said to constitute a total of 15% in the exam and would simultaneously undertake 52 Learning Outcome Statements (LOS).

For this change to be a part of this exam, the other already existing topics would be reduced in size. In this case; Domain B: Planning, Budgeting, and Forecasting would be cut down to 20% from 30%. Also, Domain D: Cost Management reduced to a total of 15% from 20% in the total coverage of the exam.

As mentioned earlier and with these changes; it can be understood that ICMA is placing more emphasis on the analytical skills in the CMA job profile. Also, mental functionalities like decision making and data reporting would be considered defining characteristics for the same. If close attention is paid to the changes; Internal Auditing would be scrapped away from Part1. Though the understanding of internal controls is quite essential; ICMA has clearly shown that the candidate should be indulged more in the management of controls.

Part 1 of the CMA exam will now be regarded as Financial Planning, Performance, and Analytics and is divided into the following six domains:

Cost Management – 15%

Internal Controls – 15%

Technology and Analytics – 15%

External Financial Reporting Decisions – 15%

Planning, Budgeting, and Forecasting – 20%

Performance Management – 20%

CMA Exam Part 2 Changes

Just like Part 1, Part 2 of the examination sees some new topics to be added and some others that would be scrapped away.

The Domain F: Professional Ethics now sees an increase in the total coverage of Paper 2 since newer topics are added. This domain is now strategically designed to assess the candidate’s on Learning Outcome Statements. These would involve psychological phenomenon such as groupthink, thought diversity, ethical leadership, and others.

These additions increase the coverage of Domain F by 5%; making it a total of 15%. Even though Domain C: Decision Analysis would not include any new Learning Outcome Statements, it is said to see an increase of 5%. This change would make its total coverage to a hefty 25%.

Of course, to add content; some content has to be removed. The significant reduction is towards Domain A: Financial Statement Analysis. It will no longer test the on off-balance-sheet financing, and its share in the examination has been reduced to 20%.

Also, from Domain B: Corporate Finance has suffered a loss in terms of numerous topics being taken down. This includes bankruptcy, tax implications of transfer pricing, and a few others. No such changes were made to Domain D or E., But Domain D has now been reduced 10% coverage in place of 15%.

Part 2 of the CMA Examination would now be regarded as Strategic Financial Management and would now include the following six domains:

Risk Management – 10%

Investment Decisions – 10%

Professional Ethics – 15%

Financial Statement Analysis – 20%

Corporate finance – 20%

Decision Analysis – 25%

New Structure of Preparation for CMA USA 2020

In case you have already started preparing for the CMA USA exam; I would suggest you pass the exam before the changes are implemented on 1st January 2020. Candidates can go online and have a look at the CMA exam dates.

Though the changes might look small, they are quite significant and would require special attention from the candidate. It would waste a lot of your time in case you study topics that would eventually be scrapped away from the exam. Better to test your knowledge on the information acquired so far and try learning new issues are being implemented from next year.

Though candidates might feel stressed due to these changes; but a piece of good news is coming their way. You have quite a considerable amount of time to study for the exam and have your CMA USA certification by the end of 2019.

Also, the CMA Exam Academy’s comprehensive study plan proves to be quite helpful in the final testing window that takes place on 1st September through 31st October. This is done to help aspirants pass the CMA exam in a stipulated period of 6 months.

So to say, with a comprehensive study schedule and one-on-one coaching classes; you are sure to clear this examination.

CMA USA 2020 FAQ’S

With ICMA gearing up for changes in the upcoming years, the readers might have few questions to ask. Have a look below to see if your query can be resolved here.

1) When is the last testing window available to take the current exam content?

For English Language Exam: September/ October 2019.

For Chinese Language Exam: 9th November 2019

2) When will be the updated exam be implemented?

 For English Language Exam: 1st January 2020

For Chinese Language Exam: April 2020 (Date yet to be decided)

3) Where can One find more information and content related to the revised portions?

The revised Content Specification Outlines for CMA and relevant Learning Outcome Statements are available. You can have a look at these links.

4) When is it possible to purchase the exam registration of CMA 2020?

For English Language Exam; registration starts after 16th February 2020 so candidates can purchase them after that.

For Chinese Language Exam; registration begins after 11th November 2019 so candidates can purchase them after that.

5) Is there a specific schedule for offering these exams?

Yes, in case the candidate wants to go for the English language exam, both Parts 1 and 2 will be given during the following testing window periods only:

January and February

May and June

September and October

For the Chinese language exam, both Parts 1 and 2 will be offered in April, July, and  November only.

For further queries, you can go online and search for them