benefits of CMA USA plus ACCA
Most of the time, a Memorandum of Understanding is signed by two or more parties to agree on some predetermined conditions. The members of the IMA, ACCA, and ICAI are exempt under agreements between the three organizations. To provide participants with the option to practice accounting in other locations without incurring additional costs, there is an ACCA CMA Mou with top institutions in particular nations. It makes it possible for ACCA members to have two memberships and eliminates the need for additional credentials. The various facets of the MoUs and agreements will be discussed in the article.
Let's first take a quick look at these three accounting bodies.
A global professional organization known as the Association of Chartered Certified Accountants (ACCA) offers certification of the same name. Because the course focuses on strengthening the candidate's foundation of accounting concepts, which is advantageous in the fields of audit and tax, candidates who hold this certification are regarded as the best accountants in the world. The prestigious Certified Management Accountant (CMA) USA certification is offered by the global accounting organization The Institute of Management Accountants (IMA). Students who complete this certification program are better suited to careers in accounting and financial management. Students and professionals who pass all three levels of the CMA India examination are certified by the national-level Institute of Cost Management Accountants of India (ICMAI).
Let's examine the various components of the MoUs now.
The most well-known management accounting program that IMA offers is the Mutual Recognition Agreement Between ACCA and IMA CMA USA. It is recognized in over 100 nations and is more prevalent in the United States. A Mutual Recognition Agreement (MRA) between the ACCA and the Institute of Management Accountants (IMA) allows members of both organizations to easily obtain credentials from one another. Together, ACCA and IMA represent 653,000 members and applicants through a global network of 89 centres and offices. Financial Leadership and Performance is a new strategic initiative by the two professional associations that aims to support professional aspirants of Chief Financial Officers (CFOs) and other up-and-coming leaders. This effort is a part of Financial Leadership and Performance.
The MRA states that upon application, ACCA members who have passed the ACCA's Professional Level advanced management accounting exams would be admitted to IMA immediately. After completing three of the ACCA's Professional Level papers, the professional ethics module, and demonstrating twelve months of additional practical experience in a relevant role, members of the IMA who hold the Certified Management Accountant (CMA) USA designation will be eligible to join the ACCA.
Difference Between ACCA and CMA USA even though CMA and ACCA can be distinguished by several characteristics, the five fundamental differences listed below are considered to be the most significant:
CMA USA is less well-known than ACCA in terms of international recognition. To date, approximately 436,000 students from 180 nations have graduated from ACCA. On the other hand, despite having just 40,000 members and a global presence in over 100 nations, CMA
The career path of CMA USA is more lucrative than that of the ACCA. CMA USA is a little harder to pass than ACCA. The CMA USA passing rate is approximately 45 per cent, while the ACCA passing rate is approximately 50 per cent. This is because US CMAs make more money than ACCAs do.
However, there is a significant pay gap between these qualified professionals when we compare ACCA and CMA USA. If you have worked in the industry for one to five years and completed your CMA, you will earn approximately 70,000 USD annually. On the other hand, ACCA would enable you to earn $46,000 annually on average.
If you complete CMA USA, you will be regarded as an expert in your field, and you will have access to numerous opportunities. ACCA is adequate, but it is much older than the competition. Consequently, Fortune 500 companies prefer US CMAs to ACCAs.
If you only have a limited amount of money to spend on a certification, ACCA might be a better choice than CMA USA. CMA fees are almost three times higher than ACCA fees because they are significantly higher.
What exactly is the ACCA CMA MoU?
A Memorandum of Understanding (ACCA CMA MoU) was signed on August 9, 2021, between the Institute of Cost Accountants of India (ICMAI) and the Association of Chartered Certified Accountants (ACCA) of the United Kingdom to collaborate on professional training, education, and examinations. CMA Biswarup Basu, President of the Institute, and Helen Brand, Chief Executive of ACCA, signed the Memorandum of Understanding. To promote the highest professional and ethical standards, the two leading professional organizations have signed a Memorandum of Understanding. Professional education, training, and examinations will be carried out jointly by the two organizations.
As a result of this agreement between ACCA CMA Mou and the other Professional Body, members of the two Institutes will be granted advanced mutual admission by being exempt from having to appear in the majority of the exams to obtain the other Professional Body's qualification. Additionally, the two Institutes have agreed to provide jointly organized and co-branded continuing professional development (CPD) courses, seminars, and conferences. In addition, the two institutes will collaborate in publishing and researching relevant research opportunities.
That concludes the ACCA CMA MoU; let us now examine the ACCA exemptions for CMA in greater detail.
Exemption from ACCA CMA Professionals with CMA USA certification is eligible for ACCA exemptions, just as individuals who wish to pursue CMA after ACCA are eligible for exemptions. According to the ACCA CMA MoU, CMA members can apply for certain exemptions to become certified by both the CMA and the ACCA. As an IMA member, you are exempt from having to pass the following ACCA test papers:
F1: Business Accountant; F2: Management Accounting; F3: Financial Accounting; F4: Corporate and Business Law; F5: Performance Management; F8: Auditing and Assurance; and F9: Financial Management
This indicates that you are not required to finish the entire Fundamental Level, which consists of nine tests that cover the Knowledge and Skills modules. You can become ACCA certified right away by passing the remaining five exams at the professional level.
Members of the ACCA who successfully complete P4 (Advanced Financial Management) and P5 (Advanced Performance Management) will be granted full recognition and will be eligible for US CMA certification.
Part 2 of the CMA USA exam has been waived for other ACCA members.
b) You must pass Part 1 of the CMA exam, I P4 or P5, to earn the CMA USA certification.
What exemptions does the US CMA grant for the ACCA exam?
Complete the required ACCA papers P1 (Governance, Risk, and Ethics), P2 (Corporate Reporting), and P3 (Professional Practice) (Business Analysis). Complete all Essential Performance Objectives and at least one year's worth of ACCA practical experience.
Work on the Professional Ethics module once more.
After completing CMA, why should a candidate continue with ACCA?
The accounting, auditing, taxation, and cost aspects are more prominent in the ACCA program. CMA USA, on the other hand, is in charge of the business and leadership knowledge requirement.
ACCA expands the individual grasp by providing more worldwide career opportunities (in 100 to 180 countries).
Members of a significant network in the financial sector.
It is simple to include one more accomplishment on your resume as a result of the exclusion of nine papers out of the 13 ACCA tests.
access to the employment portals for overseas careers offered by ACCA.
CMA USA Exemptions for CMA India A student must apply for membership to study CMA USA after CMA India. Exams are not necessary. Both CMA India and CMA USA are highly regarded when it comes to employment opportunities in India. However, India does not permit CMA USA to act as a signature authority. In a similar vein, CMA India receives no specific rights, and the MoU merely provides them with employment opportunities.
What distinguishes CMA USA from CMA India?
Students frequently feel overwhelmed when deciding between CMA USA and CMA India. Let's examine the two courses' primary differences to determine which one is superior:
CMA USA is hardly a one-year program in comparison to CMA India, which is a three-year program.
The CMA India exam has three levels—foundation, intermediate, and final levels—while the CMA USA exam only has two parts or two papers. There are twenty papers in the CMA India program.
The global pass rate for the US CMA is 50%, whereas the CMA India pass rate varies between 30 and 35%.
CMA India is only recognized in India, whereas CMA USA is a worldwide recognized certification.
The CMA India course is based on Indian accounting standards (Indian GAAP), whereas the US CMA training is based on international accounting standards (US GAAP and IFRS).
In India and around the world, CMA USA can work for Big Four and Fortune 500 companies. On the other hand, CMA India can only operate in the Indian market. If you want to work for multinational corporations or outside of India, CMA USA is unquestionably your best option.
There is a significant gap in pay between CMA India and CMA USA credential holders. Pay at CMA USA is significantly higher than at CMA India. You can anticipate earning approximately 70,000 USD annually if you earn your CMA USA and have one to five years of industry experience. CMA India, on the other hand, allows you to earn about $30,000 annually.
FAQs
1. After the CMA, how many ACCA papers are exempt?
According to the guidelines of the ACCA CMA MoU, after completing CMA, you would be exempt from seven ACCA papers. Qualified applicants may also be able to request exemptions if they have relevant work experience in the accounting and financial fields. A student can request a maximum of nine exemptions from Knowledge Level or Skills Level papers based on previous credentials.
2. Is CMA easier than ACCA?
Also, look at the passing rate to see which one is harder to pass. As you can see, US CMA is much harder to pass than ACCA. The average pass rate for the ACCA exam is between 45 and 50 per cent, while the CMA USA pass rate is close to 40 per cent. However, many individuals attempt to complete their dual certifications sequentially. With the assistance of ACCA CMA MoU agreements, which grant exemptions, it becomes simple.
3. Is CMA the same as ACCA?
Both credentials are well-known and have global recognition; however, if you complete CMA USA, you will be regarded as an expert in accounting management and will be offered numerous opportunities. ACCA, on the other hand, is a much older accounting, auditing, and taxing certification. CMAs are preferred over ACCAs by Fortune 500 companies as a result.
4. Can we take both ACCA and CMA?
If you meet the other requirements, you can join CMA as an ACCA member. If an ACCA member wants to become a US CMA, they can get there by passing the two-part CMA test and getting two years of experience working in management accounting. If you want to take the other course after ACCA CMA Mou, you may be eligible for various exemptions if you are a member of one of the institutions.
5. If you are already an ACCA, are there any exemptions available to you?
The ACCA CMA MoU says that you don't have to have a bachelor's degree if you're already an ACCA. To put it another way, if you choose to pursue the ACCA qualification immediately following your 10+2 school leaving exams and have not pursued or completed a bachelor's degree, you will be eligible for this exemption. You can still enrol in CMA and complete the remaining CMA qualifying requirements if you are an ACCA member.
6. How do I request exemptions from the ACCA?
You will need to submit an application to ACCA to receive an exemption from the ACCA CMA MoU. Copies of official documents that you have received from IMA, such as transcripts, mark sheets, or certificates, should be included in the application letter. These documents must be written in English, and IMA must sign and stamp each copy appropriately; They will be rejected otherwise. Before granting you the exemptions, ACCA will examine your application to ensure that everything is in order.
7. When can you no longer claim an exemption despite being eligible?
If a candidate received their degree from an institution of higher learning that the ACCA does not recognize, or if their work experience is unrelated to the field of finance and accounting, they will not be eligible for ACCA CMA MoU exemptions.
Conclusion The terms of the ACCA CMA MoU, which exempts professionals from various exams or eligibility requirements, should now be easy to understand.
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