2. the cima chartered management accounting qualification 2005

2. THE CIMA CHARTERED MANAGEMENT ACCOUNTING

QUALIFICATION 2005

What the CIMA professional qualification looks like……in 2005

BusinessManagement Pillar

ManagementAccounting Pillar

FinancialManagement Pillar

Paper P1 -ManagementAccountingPerformanceEvaluation

Paper P2 -ManagementAccounting

DecisionManagement

Paper P8 -FinancialAnalysis

Paper P7 -Financial

Accounting andTax Principles

Paper P9ManagementAccounting

FinancialStrategy

Paper P3 -Management

Accounting Riskand Control

Strategy

Paper P6ManagementAccountingBusinessStrategy

Award - Member of the Chartered Institute of Management Accountants

PracticalExperience

Recorded as aCareer Profile with

record of skillsdevelopment (RSD)

Minimum ofThree Years of

Relevant Experience

Test of Professional Competence in ManagementAccounting (TOPCIMA)

Pre-requisite Entry Requirements (e.g. CIMA Certificate in Business Accounting)

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Prior experience canbe included

Paper P4 -OrganisationalManagement

and InformationSystems

Paper P5 -Integrated

Management

Award - CIMA Advanced Diploma in Management Accounting




Award - Member of the Chartered Institute of Management Accountants

PracticalExperience

Recorded as aCareer Profile with

record of skillsdevelopment (RSD)

Minimum ofThree Years of

Relevant Experience

Test of Professional Competence in ManagementAccounting (TOPCIMA)

Pre-requisite Entry Requirements (e.g. CIMA Certificate in Business Accounting)

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Prior experience canbe included


Paper P1 -ManagementAccountingPerformanceEvaluation


DecisionManagement


Paper P7 -Financial



FinancialStrategy



Strategy





Management

Key Design Features

• Separation of the Professional Chartered Management Accounting Qualification from the CIMA Certificate in Business Accounting

• New entry requirements to the CIMA Professional Qualification

• A qualification structure that is easy to understand

• Three learning pillars separated into two levels - Managerial and Strategic

Key Design Features• An International curriculum

• Fewer examinations

• Complete flexibility as to how students can study for and sit the examinations for the six Managerial level subjects……. (students can sit from 1 to 6 papers at each exam diet and in any order they wish)

• CIMA Advanced Diploma is awarded on successful completion of the Managerial level subjects

Key Design Features

• A new P10 - Test of Professional Competence

• Opportunity to submit the Career profile for assessment of practical experience following completion of the CIMA Advanced Diploma (subject to having minimum 3 years of relevant experience)




PerformanceEvaluation


DecisionManagement



Paper P7 -Financial



FinancialStrategy



Strategy


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Management


Study Routes

Managerial Level - Alternative A






DecisionManagement



Paper P7 -Financial



FinancialStrategy



Strategy


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Management


Study Routes

Managerial Level - Alternative B






DecisionManagement



Paper P7 -Financial



FinancialStrategy



Strategy


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Management


Study Routes

Managerial Level - Alternative C






DecisionManagement



Paper P7 -Financial



FinancialStrategy



Strategy


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Management


Study Routes

Strategic Level - No Alternative

Paper 15CaseStudy

Paper 12Bus

Strategy

Paper 13FinancialStrategy

Paper 14Inform

Strategy

Paper 4Finance

Paper 10S & P

M anage

Paper 5BusinessT axation

Paper 11O rganisat

M anage

Paper 3aEcon

for Bus

Paper 3bBusiness

Law

Paper 9M A Decis

M aking

Paper 7FinancialReporting

Paper 8M A PerfM anage

Paper 6Financial

Accounting

Paper 3cBusiness

M athem atics

Paper 1FinancialAcc Fund

Paper 2M A

Fund

FINAL LEVEL

INTERMEDIATE LEVEL

FOUNDATION LEVEL

Current CIMA 2000 Curriculum


4 Finance

(I) The finance function - 10%

(ii) Sources of long term finance - 30%

(iii) Sources of short term finance - 20%

(iv) Working capital management - 40%






DecisionManagement



Paper P7 -Financial



FinancialStrategy



Strategy


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Management


New CIMA 2005 Curriculum


P7 Financial Accounting and Tax Principles

A. Principles of business taxation - 20%

B. Principles of regulation of financial reporting- 10%

C. Single company financial accounts - 45%

D. Managing short term finance - 25%


P9 MA Financial Strategy

A. Formulation of financial strategy - 20%

B. Financial management - 30%

C. Business valuations & acquisitions - 25%

D. Investment decisions & project control - 25%

New location of current content

4 Finance





P7 Financial Accounting and Tax Principles

A. Principles of business taxation - 20%

B. Principles of regulation of financial reporting- 10%

C. Single company financial accounts - 45%

D. Managing short term finance - 25%


4 Finance





P9 MA Financial Strategy

A. Formulation of financial strategy - 20%

B. Financial management - 30%

C. Business valuations & acquisitions - 25%

D. Investment decisions & project control - 25%

Paper 15CaseStudy

Paper 12Bus

Strategy

Paper 13FinancialStrategy

Paper 14Inform

Strategy

Paper 4Finance

Paper 10S & P

M anage

Paper 5BusinessT axation

Paper 11O rganisat

M anage

Paper 3aEcon

for Bus

Paper 3bBusiness

Law

Paper 9M A Decis

M aking

Paper 7FinancialReporting

Paper 8M A PerfM anage

Paper 6Financial

Accounting

Paper 3cBusiness

M athem atics

Paper 1FinancialAcc Fund

Paper 2M A

Fund

FINAL LEVEL

INTERMEDIATE LEVEL

FOUNDATION LEVEL



10 Systems & Project Management

(I) Project management - 30%

(ii) IT & systems - 35%

(iii) Control of activities & resources - 10%

(iv) Audit of activities & systems - 15%

(v) Management of quality - 10%






DecisionManagement



Paper P7 -Financial



FinancialStrategy



Strategy


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Management




P4 Organisational Management and Information Systems

A. Information systems - 20%

B. Change management - 10%

C. Operations management - 20%

D. Marketing - 20%

E. Managing human capital - 30%


P5 Integrated Management

A. The basis of strategic management - 30%

B. Project management - 40%

C. The management of relationships - 30%


P3 MA Risk & Control Strategy

A. Management control systems - 15%

B. Risk & internal control - 20%

C. Review & audit of control systems - 15%

D. Management of financial risk- 30%

E. Risk & control in information systems - 20%








P4 Organisational Management and Information Systems

A. Information systems - 20%

B. Change management - 10%

C. Operations management - 20%

D. Marketing - 20%

E. Managing human capital - 30%








P5 Integrated Management

A. The basis of strategic management - 30%

B. Project management - 40%

C. The management of relationships - 30%








P3 MA Risk & Control Strategy

A. Management control systems - 15%

B. Risk & internal control - 20%

C. Review & audit of control systems - 15%

D. Management of financial risk- 30%

E. Risk & control in information systems - 20%

P10 - TOPCIMA

• P10 is a Test of Professional Competence in Management Accounting

• Based on a Case Study

• There is no specific syllabus content - material from any part of the syllabus could be potentially relevant when resolving the problem set

P10 - TOPCIMA

• For students, the new P10 will involve much the same assessment activity as the current Case Study

• P10 will operate in the same way as the current Case Study - publication of pre-seen material at least 6 weeks before the exam, requiring study and research to be undertaken by the student

Is it similar to the current Paper 15 - MA Case Study?

P10 - TOPCIMA

• Further unseen material will be provided in the examination, together with the ‘requirements’ (question)

Is it similar to the current Paper 15 - MA Case Study?

P10 - TOPCIMA

• Assessment

• A new assessment matrix will be used that has a number of different assessment criteria

• Most significantly - more weight is attached to knowledge and its correct selection and application when solving problems

So what is different to the current Paper 15 - MA Case Study?

TOPCIMA Assessment MatrixCriterion Marks* Clear Pass Pass Marginal Pass Marginal Fail Fail Clear Fail

Technical 10

Thorough display ofrelevant technicalknowledge.

9-10

Good display of relevantknowledge.

6-8

Some display of relevanttechnical knowledge.

5

Identification of somerelevant knowledge, butlacking in depth.

3-4

Little knowledge displayed,or some misconceptions.

1-2

No evidence of knowledgedisplayed, or fundamentalmisconceptions.

0

Application 10Knowledge clearly appliedin an analytical andpractical manner.

9-10

Knowledge applied to thecontext of the case.

6-8

Identification of somerelevant knowledge, butnot well applied.

5

Knowledge occasionallydisplayed without clearapplication.

3-4

Little attempt to applyknowledge to the context.

1-2

No application ofknowledge displayed.

0

Diversity 10

Most knowledge areasidentified, covering a widerange of views. 9-10

Some knowledge areasidentified, covering a rangeof views. 6-8

A few knowledge areasidentified, expressing afairly limited scope.

5

Several importantknowledge aspectsomitted.

3-4

Many important knowledgeaspects omitted.

1-2

Very few knowledgeaspects considered.

0

Focus 10Clearly distinguishesbetween relevant andirrelevant information.

9-10

Information used is mostlyrelevant.

6-8

Some relevant informationignored, or some lessrelevant information used.

5

Information used issometimes irrelevant.

3-4

Little ability to distinguishbetween relevant andirrelevant information. 1-2

No ability to distinguishbetween relevant andirrelevant information.

0

Prioritisation 10

Issues clearly prioritised ina logical order and basedon a clear rationale.

9-10

Issues prioritised withjustification.

6-8

Evidence of issues beinglisted in order ofimportance, but rationaleunclear. 5

Issues apparently inpriority order, but without alogical justification orrationale. 3-4

Little attempt atprioritisation or justificationor rationale.

1-2

No attempt at prioritisationor justification.

0

Judgement 10

Clearly recognisesalternative solutions.Judgement exercisedprofessionally. 9-10

Alternative solutions oroptions considered. Somejudgement exercised.

6-8

A slightly limited range ofsolutions considered.Judgement occasionallyweak. 5

A limited range of solutionsconsidered. Judgementsometimes weak.

3-4

Few alternative solutionsconsidered. Judgementoften weak. 1-2

No alternative solutionsconsidered. Judgementweak or absent.

0

Integration 10Diverse areas ofknowledge and skillsintegrated effectively.

9-10

Diverse areas ofknowledge and skillsintegrated.

6-8

Knowledge areas and skillsoccasionally not integrated.

5

Knowledge areas and skillssometimes not integrated.

3-4

Knowledge areas and skillsoften not integrated.

1-2

Knowledge areas and skillsnot integrated.

0

Logic 20

Communication effective,recommendations realistic,concise and logical.

16-20

Communication mainlyclear and logical.Recommendationsoccasionally weak. 11-15

Communicationoccasionally unclear,and/or recommendationsoccasionally illogical. 10

Communication sometimesweak. Somerecommendations slightlyunrealistic. 5-9

Communication weak.Some unclear or illogicalrecommendations, or fewrecommendations. 1-4

Very poor communication,and/or norecommendations offered.

0

Ethics 10Excellent evaluation ofethical aspects. Clear andappropriate advice offered.

9-10

Good evaluation of ethicalaspects. Some appropriateadvice offered.

6-8

Some evaluation of ethicalaspects. Advice offered.

5

Weak evaluation of ethicalaspects. Little adviceoffered.

3-4

Poor evaluation of ethicalaspects. No advice offered.

1-2

No evaluation of ethicalaspects. Unethical, or no,advice offered.

0

TOTAL 100 *Note The number of available marks allocated to each criterion will normally be as shown.

© CIMA – January 2004

TOPCIMA Assessment Matrix

Criterion Marks* Clear Pass Pass Marginal Pass Marginal Fail Fail Clear Fail

Technical 10

Thorough display ofrelevant technicalknowledge.

9-10

Good display of relevantknowledge.

6-8

Some display of relevanttechnical knowledge.

5

Identification of somerelevant knowledge, butlacking in depth.

3-4

Little knowledge displayed,or some misconceptions.

1-2

No evidence of knowledgedisplayed, or fundamentalmisconceptions.

0

Application 10Knowledge clearly appliedin an analytical andpractical manner.

9-10

Knowledge applied to thecontext of the case.

6-8

Identification of somerelevant knowledge, butnot well applied.

5

Knowledge occasionallydisplayed without clearapplication.

3-4

Little attempt to applyknowledge to the context.

1-2

No application ofknowledge displayed.

0

Diversity 10

Most knowledge areasidentified, covering a widerange of views. 9-10

Some knowledge areasidentified, covering a rangeof views. 6-8

A few knowledge areasidentified, expressing afairly limited scope.

5

Several importantknowledge aspectsomitted.

3-4

Many important knowledgeaspects omitted.

1-2

Very few knowledgeaspects considered.

0

Focus 10Clearly distinguishesbetween relevant andirrelevant information.

9-10

Information used is mostlyrelevant.

6-8

Some relevant informationignored, or some lessrelevant information used.

5

Information used issometimes irrelevant.

3-4

Little ability to distinguishbetween relevant andirrelevant information. 1-2

No ability to distinguishbetween relevant andirrelevant information.

0

Prioritisation 10

Issues clearly prioritised ina logical order and basedon a clear rationale.

9-10

Issues prioritised withjustification.

6-8

Evidence of issues beinglisted in order ofimportance, but rationaleunclear. 5

Issues apparently inpriority order, but without alogical justification orrationale. 3-4

Little attempt atprioritisation or justificationor rationale.

1-2

No attempt at prioritisationor justification.

0

Judgement 10

Clearly recognisesalternative solutions.Judgement exercisedprofessionally. 9-10

Alternative solutions oroptions considered. Somejudgement exercised.

6-8

A slightly limited range ofsolutions considered.Judgement occasionallyweak. 5

A limited range of solutionsconsidered. Judgementsometimes weak.

3-4

Few alternative solutionsconsidered. Judgementoften weak. 1-2

No alternative solutionsconsidered. Judgementweak or absent.

0

Integration 10Diverse areas ofknowledge and skillsintegrated effectively.

9-10

Diverse areas ofknowledge and skillsintegrated.

6-8

Knowledge areas and skillsoccasionally not integrated.

5

Knowledge areas and skillssometimes not integrated.

3-4

Knowledge areas and skillsoften not integrated.

1-2

Knowledge areas and skillsnot integrated.

0

Logic 20

Communication effective,recommendations realistic,concise and logical.

16-20

Communication mainlyclear and logical.Recommendationsoccasionally weak. 11-15

Communicationoccasionally unclear,and/or recommendationsoccasionally illogical. 10

Communication sometimesweak. Somerecommendations slightlyunrealistic. 5-9

Communication weak.Some unclear or illogicalrecommendations, or fewrecommendations. 1-4

Very poor communication,and/or norecommendations offered.

0

Ethics 10Excellent evaluation ofethical aspects. Clear andappropriate advice offered.

9-10

Good evaluation of ethicalaspects. Some appropriateadvice offered.

6-8

Some evaluation of ethicalaspects. Advice offered.

5

Weak evaluation of ethicalaspects. Little adviceoffered.

3-4

Poor evaluation of ethicalaspects. No advice offered.

1-2

No evaluation of ethicalaspects. Unethical, or no,advice offered.

0

TOTAL 100 *Note The number of available marks allocated to each criterion will normally be as shown.

© CIMA – January 2004


• “…have a sound technical knowledge of the specific subjects of the curriculum”

• This rewards the knowledge itself

Example:

Criteria - Technical


• “…can apply technical knowledge in an analytical and practical manner”

• This is about the way in which the knowledge is used (or not!)

Example

Criteria - Application


• “…can solve a particular problem by distinguishing the relevant information from the irrelevant in a given body of knowledge”

• This relates to the data processing from the scenario and exhibits to the answer

Example:

Criteria - Focus

P10 - TOPCIMA

• It is a stand alone test (after the Strategic level)

• It is a pathway directly into membership for those who have previously had their practical experience assessed and approved

So what is different to the current Paper 15 - MA Case Study?

Practical Experience Requirements - Have They Changed?

• The Career Profile will still be used to record experience

• As part of our normal regular review, minor changes may be made to experience areas during the next 6 months, to widen scope

• A new section will be added to the Career profile - The Record of Skills Development (RSD)


• The RSD requires students/passed finalists to provide statements that document instances where behavioural skills have been demonstrated and developed through work experience

• The aim of including the RSD is to signal the importance that CIMA attaches to the development of such skills by future members


• The skill statements required in the RSD will fall within three headings:

– personal skills

– interpersonal skills

– organisational skills

Skill Type Your RecordPersonal Skills 1. A new CEO in my company requested from me a full report on the company’s risk control systems

and areas for improvement, to be ready within one week.I had not been closely involved with this area before so to write the report I had to obtain backgroundinformation from a project manager who had introduced our system. To avoid him feeling that hisprevious judgement was being questioned I carefully planned and phrased my questions. Thisensured there was no emotional tension during our meetings. Also, the CEO’s deadline meant that Ihad to work long hours - not only was there a lot to do but I wanted to impress the CEO with mybusiness knowledge. By reorganising my schedule, I was able to minimise the stress of meeting thedeadline and successfully delivered the report on time.My performance in this project demonstrated personal skills in handling potential conflict and stress.

Interpersonal Skills 1. One of my key responsibilities has been compiling the company’s annual budget based on inputsfrom departmental managers throughout the organisation and budget committee discussions.When conducting this work I thought that certain managers did not seem to be taking the processseriously - they were slow in responding to requests for information and when reminded of what wasoutstanding were either off-hand or quite aggressive towards me.I approached these managers individually, explained my responsibility and tried to find out why theydid not think this work was important. Making this approach itself seemed to improve therelationships and I found out that they were suspicious of the budgeting process because it seemedtheir targets were adjusted regardless of their input. While I did not have the authority to alter theprocess, I did suggest to the head of my function that there was a communication gap which couldbe filled by explaining to managers the purposes of budgeting and how our process works. Thissuggestion was taken up. Dealing with the apparently disgruntled managers in this case, finding out the cause of the problemand suggesting a possible response to my head all required substantial interpersonal skills.

Organisational Skills 1. In order to conduct the analysis described in item 1 under Personal Skills above, I had to obtain awide range of information both from appropriate documentation (of internal control systems) andfrom people within the organisation (to determine their relevant experience of operating the controlprocedures and to obtain their thoughts about potential shortcomings). This element of my workthus entailed considerable organisational skills in identifying the relevant sources of information andworking with other personnel to achieve an organisational objective. I also found that thisexperience considerably increased my network of contacts within the organisation, which I havemaintained and been able to use in other projects.

Practical Experience Requirements - The RSD

The CIMA Certificate in Business Accounting - What is happening to it?

• The Certificate (formerly the Foundation level) has been separated from CIMA’s Professional qualification

• It is now an entry requirement for the CIMA Professional Chartered Management Accounting Qualification

• Other exempting qualifications can be used as an entry route into the CIMA Professional Chartered Management Accounting Qualification

The CIMA Certificate in Business Accounting - What is happening to it?

Lecturers’ conference 2004Sponsored by

CIMA Official Study Systems

New editions fully support the

new syllabus

Key Dates and Deadlines• May 2004 - exams under the current 2000 syllabus

• 31 July 2004 - last date for students to register with CIMA under the current syllabus

• 1 August 2004 - students transferred from current to new qualification - personalised statements of their transition arrangements (planned to be put on the web)

• November 2004 - last exams under the current 2000 syllabus

Key Dates and Deadlines

• January 2005 - exam results published for the last diet of exams based on the 2000 syllabus

• 1 February 2005 - students who sat the November 2004 exams have their personal transition arrangements updated

• May 2005 - First exams under the new 2005 Professional Qualification syllabus

How Can You Keep Up To Date?

• Reading CIMA Insider

• The website

cimaglobal.com/professionalqualifications

• Ask us!

2. the cima chartered management accounting qualification 2005

Documents

management accounting

cima certificate

strategic slide

managerial level subjects

cima advanced diploma

levels managerial

career profile

qualification structure