What is Full-Form of CIMA?
Full-form of CIMA is Chartered Institute of Management Accountants. It is a professional body based out of UK and spanned across 170 countries or more and provides a course in the management field and provide a degree of CIMA to the candidates fulfilling the stated conditions of the course
- It has been established in the year 1919 as a Cost and Works Accountants by a few legal professionals for catering to the changing needs in the finance, accounting, and management domain.
- In 1975, it has received a Royal Charter and a status of management accounting as a branch of the accounting profession for providing a qualification in careers for Business and Finance. It has more than 2,18,000 members across 177 countries and considered the largest professional body of management across the globe.
- The members of the Chartered Institute of Management Accountants fraternity work in diverse fields such as Corporate Finance, Financial Reporting, Project Finance, Treasury Management, and Risk Management, etc.
- It is also a member of the International Federation of Accountants which is considered a global organization in the accountancy profession. It was founded in 1977 and has more than 175 members in 130 countries with greater than 3 million candidates worldwide.
These Exams follow a typical UK based approach that is quite different from the structure followed by US institutions such as CPA. CMA etc. To take up the CIMA exam, a relevant master’s degree, an equivalent degree, or a Certificate in Business Accounting form CIMA is required. The syllabus of the Chartered Institute of Management Accountants is divided into three pillars and three parts. It includes objectives and case study based questions. Out of total exams, there are nine objective exams and three case study based exams. In Chartered Institute of Management Accountants one level needs to clear to move to the next level.
All levels cumulatively require 9 objectives and three case study based exams to clear the course.
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- Operational Level: There are three levels at the operational level and which are organizational management, management accounting, financial reporting, and taxation. This level mostly covers the work of a junior accountant and provides exposure in the area of implementation of strategy and related reporting. financial statements, providing management accounting information, and decision making are taught at this level.
- Management Level: management level comprises of project and relationship management, advanced management accounting, and advanced financial reporting. This level prepares the candidate for a managerial or sub managerial level. At this level, the candidate learns about preparing a group account, pricing, and product decisions, etc.
- Strategic Level: At the strategic level, there are three divisions; Strategic management, risk management, and financial strategy. Here the candidate learns about creating financial strategies, strategic relationships, and prepare for the role of senior management.
The objective exams take place on Pearson VUE assessment networks across the globe. The candidates need to clear all the exams before taking up the case study exam. The objective exam is 90 minutes long and made of multiple-choice questions.
CIMA vs ACCA
- Both the courses CIMA and ACCA are facilitated by professional bodies in the UK and provide a job opportunity of similar strata. The major difference lies in the field of specialization, whereas ACCA is more focused on Accounting and Auditing, CIMA approaches Management more vigorously.
- Chartered Institute of Management Accountants requires clearing 17 examinations to avail the degree but multiple exemptions are available due to tie-ups with other institutes across the world. The course focuses more on business and management accounting subjects with strategy, strategic management, and marketing at its core. There are four stages of exams coupled with 3 years of practical experience to complete this course. It takes around 2-2.5 years to finish the entire curriculum.
- On the other hand, a series of 14 examinations is required to pass the exams, alike CIMA, it also provides some exemptions to candidates of other accounting and financial professional courses. Highlighted subjects are accountancy, management, cost accounting, and performance management. The major thrust behind this course is on accountancy, auditing, and taxation. The course takes an average of 3-4 years along with 3 years of practical practice to finish the course.
- It has a tie-up with CPA (America), and a Chartered Institute of Management Accountants qualified candidate gets a complimentary degree, CGMA from the CPA Institute too along with getting the CIMA qualification. These degrees surely increase the weightage of the Resume and pushes the candidate one notch higher.
- Chartered Institute of Management Accountants fraternity boasts of more than 1,72,000 members in 160 countries and collaboration with 4500 companies for job prospects of qualified students. These credentials surely help the student to land a lucrative job.
- It allows the flexible schedule to its students which could be finished by them at their own pace and the course could be finished by the student with ease.
- It is very cost-effective in comparison to the other courses available in the market. It charges only GBP 5302 for full course spanning over three years.
- The qualified CIMA candidate also gets preferential benefits in immigration to Australia, and Canada, as CIMA has tie-ups with professional bodies such as CPA Australia and CMA Canada.
- Chartered Institute of Management Accountants course Is well recognized in most of the companies across the globe, and some prominent ones are Ford, Siemens, Barclays, Sony, Deloitte, Xerox, Procter and Gamble, Unilever, Accenture, Cap Gemini, PWC, HSBC, Nestle, Coca Cola, American Express, etc.
Overall, this is a course designed for individuals to excel, educate, and make a mark in the field of management studies. Apart from global recognition, and well-established tie-ups with various educational organizations across the globe, it also provides a strong network of alumnus chairing the top management roles in top companies of the world.
This has been a guide to the What is the Full Form of CIMA i.e (Chartered Institute of Management Accountants) and its definition. Here we discuss the history of CIMA, structure, and qualification along with exam details and importance. You may refer to the following articles to learn more about finance –