Helping Financial Professionals Achieve Excellence

1. CMA-Getting Certified PRESENTED BY Palo Alto CHAPTER Helping Financial Professionals Achieve Excellence

2. AGENDA • Certification Requirements • Old & New CMA Format • Becoming Certified (Steps) • Steps to Succeed in Getting Certified • Study Tips / Success Stories from Certified Members • Chapter reimbursement for passing parts • Benefits of Certification • Compare CPA to CMA

3. Background IMA Vision: Global leadership in education, certification, and practice of management accounting, finance and information management. • Certification Programs • Certified Management Accountant (CMA) - 1972 • Certified in Financial Management (CFM) - 1996

4. Certification Programs The only Global Professional Designations for Management Accounting and Financial Management The most relevant certifications for the 85% of accountants who work inside organizations • Certified Management Accountant (CMA) • For accounting financial and information management professionals, public accountants, accounting educators, and accounting students • Certified in Financial Management (CFM) • For corporate and banking financial management, business analysts, financial educators and students

5. Becoming a CMA/CFM • First steps first … Member of the IMA • Apply for admission into certification program • Register for certification exam • Fulfill educational credentials • Pass exam and satisfy experience requirement • Comply with the Standards of Ethical Conduct

6. Certification Exam Transition Reorganized (FY05 to Present) Original (Pre July 2004) Part 1: Econ, Finance and Mgmt Part 1: Business Analysis Part 2 - CMA: Fin Accounting, Reporting, & Analysis Part 2: Management Accounting & Reporting Part 2 - CFM: Corp Financial Management No Change Part 3: Mgmt Reporting, Analysis & Behavioral Issues Part 3: Strategic Management Part 4: Decision Analysis, Info Sys, & Mgmt Controls Part 4: Business Applications (Level C) Ethical issues can appear in any of the examination parts

7. Part 1 Revised (FY05+) Original (Pre July 2004) U.S. Bus Env 10-15% Corp Fin Mgmt 20-30% Fin Stmt Analysis 25% Global Business 20% Int’l Business Env 10-15% Quantitative Methods 15% Microeconomics 10-15% Internal Controls 15% Org Str, Mgmt, & Comm 15-25% Macroeconomics 10-15% Bus Econ 25%

8. Part 2 Revised (FY05+) Original (Pre July 2004) Performance Measurement 20% Financial Statement Analysis 15-25% Cost Management 25% Preparation of Financial Statements 50-70% Budget Preparation 15% Information Management 15% Financial Accounting Environment 15-25% External Financial Reporting 25%

9. Part 3 Revised (FY05+) Original (Pre July 2004) Cost Measurement 20-30% Control and Performance Evaluation 20-30% Corporate Finance 25% Investment Decisions 20% Strategic Planning 15% Planning 20-30% Strategic Marketing 15% Behavioral Issues 20-30% Decision Analysis 25%

10. Part 4 • Revised (FY05+) • Essay questions dealing with parts 1,2, and 3 as well as: • Organization management • Organization communication • Behavioral issues • Ethical considerations Original (Pre July 2004) Quantitative Methods for Decision Analysis 10-15% Decision Theory and Operational Decision Analysis 20-30% Investment Decision Analysis 20-30% Management Controls 15-20% Information Systems 15-25%

11. Part 2-CFM – Corporate Financial Management Financial Statement Analysis 15-25% External Financial Environment 15-20% Employee Benefit Plans 5-10% Working Capital Policy and Management 15-20% Strategic Issues in Finance 15-25% Risk Management 15-20%

12. Six Steps to Succeed on Exam • Buy Gleim CMA/CFM study material • Study each section per part using process: • Browse section to acquaint with main points • Count number of questions per section (to gauge proportions) • Reread sections in chapter to learn concepts • Stop after section and try some questions • Take software practice study sessions after reading material • Concentrate on important sections of Part (%s noted in Appendix) • Review sections and take notes • Take software study session exams each day during week of exam (60 questions, 1:15 mins)

13. Success Stories / Study Tips • Prior CMA exam – Carroll • Current CMA candidate (Passed Part 1) – Mike

14. Professional Development – IMA Certification Tools • IMA Certification Listserves – sign up at http://imalistserv.imanet.org • New IMA CMA/CFM training tools • Lifelong Learning Center • Publications – Strategic Finance, Management Accounting Quarterly IMA provides opportunities for members to take advantage of informative programs and to learn cutting-edge financial management solutions from experts while earning continuing professional education credits through:

15. Palo Alto ChapterMember Certification Program • CMA and CFM Review Sessions • Start Part I October 2005 and finish before Christmas • Start Part II January 2006 and finish by March 2006 • Meet at San Jose library • Gleim Initiative (Volume Priced Discount) • How it works • Old and New exam software • MicroMash Study System • IMA Study System

16. Income Impact Compensation by Age, Average Salary

17. Income Impact Compensation by Age, Average Total Compensation

18. CMA/CFM vs. CPA

19. Subject Matter Comparison

20. CMA/CFM vs. CPA Graph

21. You The Member… Opportunity to demonstrate professional capabilities Recognition of achievement Reward, promotions, and salary increases Your Company Can… Identify motivated professionals for recognition and advancement Provide a necessary component of professional development Achieve and maintain a high level of knowledge, competence, and business understanding Certification Benefits

22. As a CMA/CFM, You Have: • Demonstrated substantial knowledge of accounting, finance, and important related fields, as well as ability to integrate accounting and financial information into the business decision process. • Significant practical experience in management accounting or financial management. • Proven ability to become a strategic business partner committed to a strict code of ethics and standard of excellence through a lifelong commitment to learning.

23. As a CMA/CFM, You Have: • Confirmed broad business competency and mastery of management-level skills required to build quality business practices and add value to your organization by providing decision support, planning, and control over operations. • Joined an elite group of professionals inside organizations who are relied upon by businesses around the world not only for accounting, finance, and information management, but for the strategic planning necessary to successfully position the organization in the changing world of business.

24. Next Steps • Determine want and need certification • Figure out timeline and plan • Join Chapter Study Group now!!! • Be prepared to buy study guides • GLEIM appears to be the best product for the money • Make more money once certified!!!

25. Remaining a CMA/CFM • Maintain IMA Membership • Meet the Continuing Education Requirement – 30 Hours/Year (An easy way: Attend Local IMA Chapter Dinner Meetings) • Comply with the Standards of Ethical Conduct

26. Helping Financial Professionals Achieve Excellence www.imanet.org