Leni James K (Student CMA) 28 December 2012
The most easiest way for Indians working outside India to get ICWA qualification and CMA title is by doing CMA US and then applying for memebership in ICWA. CMA US can be done within one year by passing only 4 papers divided into two groups with 2 subjects each. The pattern of question is objective multiple choice. Also if done in India, CMA US gets the title of CMA though not membership.
So what is the difference between CMA passed graduates in India from ICWA and CMA US passed. The title remains the same in job market. Since practice avenues are not very bright, most of the cost accountants try to get into job market where they have to face this competition which is an increasing trend now. A CMA from India has to pass 14 papers in the old syllabus and the examination is also descripttive and not objective. The new syllabus contains 16 paper to become cost accountant.
If we look at the CA institute they don't have any tie up of this manner in respect to reciprocal membership without writing any corresponding exams. Also the title of CA is not shared in our country by any other profession. That makes them really exclusive.
ICWA tie up with CIMA London is ok since there are corresponding papers to be written in both countries to get the membership and also quality of CIMA is of very high quality at par with our professional programmes. Giving reciprocal membership with exemption in all papers would look to be a boon by many of our professionals, but in the real sense this is sure to back fire our profession. Tie up and reciprocal arrangement is ok upto joint research and development but not by giving fully exempted membership. An India CMA student from ICWA slogs it out to pass the exams while the CMA US students can get it more easily by completing the limited syllabus(not taking into account the indian financial environment including the laws and regulations involving commerce and tax) and objective papers with in one year.
It would have been better to have to old title of CWA to show the exclusivity of our profession just like CA.
Now membership in CA can also be had from CA Wales or reverse. But the syllabus of both are at par and the member has to pass the technical integrated exam of the foreign institute to practice in foreign country. So the exclusivity remains.
ACMA-ICAI (DGM-Global Voice Business) 31 December 2012
Think the reverse side also. If any Indian Cost Accountants want to settle in USA then CMA is useful. because to get ajob at USA in Accounts or Costing field, one has to passed CPA or CMA(USA) or CISA. so, this side it is beneficial to hold US CMA degree.
I am not agree that practicing scope for Cost Accountants is limited. now a days, demand is more for Cost Accountants because Cost Audit and Compliance certificate compulsory.
CMA USA can not practice in India. we need more practicing Cost Accountants. at present only 3000 practicing Cost Accountants against 50000 companys for Cost Audit or Compliance certificate.
Leni James K (Student CMA) 31 December 2012
Fully agree with the point that scope of practicing cost accountants are growing. But the scope is not like practice areas of a chartered accountant. Most of students are looking for jobs rather than practice. And the difference here is that cost accounting students have completed a rigorous theoretical and practical training averaging 3-4 years to become fully qualified cost accountants. So for such students to pass the CMA US is not going to be tough, since there are only two parts to pass and the exams are conducted each quarter. 75% is totally objective. There is a big difference in the ciricula of both the institutes and also the recognition by Government of India for our institute is in a more higher pedestal than CMA US in USA which is more recognized in trade circles and are not even undertaking cost audits. Also please note that in our country the CAS are developed by the Institute whereas in US the CAS standard are developed by the CASB which was established by the US Congress in 1970. CMA US has no role in it. CMA US is more like a mini MBA Degree. CMA US are for certain work areas / job territories and is not created for practice even in USA. And now the trend is that more and more students from our country are going for CMA US qualification and with in 1 - 1 1/2 Years are carrying the designation of CMA. So what about the CMA India students who have to slog it out for passing out almost 16 subjects and have the same designation in India. Look at CA and its exclusivety. Does it allow the CPA from US to hold the designation of CA in India. And CPA US is a very highly recognized licential profession in US. Even then CA institute safeguards their designation in India by creating proper safe guards and not blindly getting into reciprocal membership rights.
I am not saying that I am against CMA US. It is a good qualification to have and very well recognized all over the world. But to allow the CMA US candidates to have the same designation in India is disadvantageous for us. Some sought of competency have to be built into the agreement by making the candidates of CMA US to complete the technical subjects applicable to our business environment. Just like CIMA UK and ICWA.
CMA designation has to be earned according to our standards. If not the old designation of CWA would be better. Cost accountants from India going to US and working are much lesser than CMA US Franchise institutes in India in different locations conducting the course and passing out huge number of candidates in India within a short period and also in huge numbers every quarter. This would surely become a bitter pill for us if not controlled in some way as we would have to share CMA designation with candidates having done only 1-1 1/2 years course. Please know the facts that not many cost accountants who have passed out are going to do independent practice and have to depend on the job market. Now if this trend is not controlled the Institute will lose a lot of prospective candidates to these franchisee insitutes conducting CMA US courses and also market is going to be flooded with CMAs, both US and India.
Leni James K (Student CMA) 01 January 2013
Thank you Sir for your positive response. The institute has to implement some additional safeguards(like clearing of technical subjects according to our country's needs) so that the designation of CMA does not become generalized in our country, to be granted by any certifying authority other than our institute.
Leni James K (Student CMA) 05 January 2013
Yes. In case it is not done we would be the losers in this competitive era, where it would become very easy for many candidates to hold the CMA designation in India. Our designation would become a very general designation. At present there are many franchises imparting the CMA US courses and passing out numerous candidates every quarter including many candidates doing these courses directly with CMA USA from India itself. Also there are prometric test centres are all around in India.These private institutes are heavily advertising in New Papers like Hindu and other leading advertising media about CMA US being equivalent to ICWA as per the reciprocal agreement. So many candidates are taken by this advertisements and the mind set is that "when we can do the CMA course within one year and also the exam pattern is objective, why should we grind it out doing CMA India course which would take us atleast 3 to 4 years to qualify".
To be precise if the institute doesn't look into this issue we would fall behind the profession of CA, which takes each and every decision with utmost care in order to maintain the rigid standards and controls for giving the CA designation in India or sharing it with other foreign institutes. Our Institue in its excitement to get into the global market are jeopardizing the profession inadvertently and unknowingly. If this trend is not reversed, soon the Indian market will be flooded with professionals holding CMA from US rather than our CMA India. This loop hole has to be filled in with some sought of controls just like the tie-ups we have with CIMA UK. Otherwise only people who would like to practice would start taking up CMA India and others would opt for CMA US. Both gives the same designation of CMA.
There is another way to take membership rights with the instute by those Indian citizens doing the CMA US course from Gulf and other foreign countries and then applying for institute membership and thus easily holding CMA India designation with membership to look for prospective jobs in India with CMA India membership. And to be precise this trend is also increasing. Rather than Foreign citizens of USA or any other foreign country applying for reciprocal membership with CMA India, it is the Indian citizens residing in these foreign countries taking advantage of this facility. Safeguard in this regard can be that membership rights may be given to only foreign citizens doing CMA US from outside the country and passing the CMA US Exams from out of India.
Tushar Mestry (Others) 08 May 2014
CMA (Certified Management Accountant) is awarded by IMA. Miles CMA Review is the official IMA partner in India which provides thorough training and guidance to enable candidates to clear the US CMA exams and earn their CMA certification.CMA exams comprise just 2 exams with centres in India and total course cost is upto 110k.