2. THE CIMA CHARTERED MANAGEMENT ACCOUNTING QUALIFICATION 2005

What the CIMA professional qualification looks like……in 2005

Award - Member of the Chartered Institute of Management Accountants Test of Professional Competence in Management Accounting (TOPCIMA) Business Management Pillar Management Accounting Pillar Financial Management Pillar Paper P6 Management Accounting Business Strategy Paper P3 - Management Accounting Risk and Control Strategy Paper P9 Management Accounting Financial Strategy Strategic Level Award - CIMA Advanced Diploma in Management Accounting Practical Experience Recorded as a Career Profile with record of skills development (RSD) Minimum of Three Years of Relevant Experience Paper P5 - Integrated Management Paper P2 - Management Accounting Decision Paper P8 - Financial Analysis Managerial Level Paper P4 - Organisational Management and Information Systems Paper P1 - Management Accounting Performance Evaluation Paper P7 - Financial Accounting and Tax Principles Pre-requisite Entry Requirements (e.g. CIMA Certificate in Business Accounting) Prior experience can be included

Award - Member of the Chartered Institute of Management Accountants Test of Professional Competence in Management Accounting (TOPCIMA) Business Management Pillar Management Accounting Pillar Financial Management Pillar Paper P6 Management Accounting Business Strategy Paper P3 - Management Accounting Risk and Control Strategy Paper P9 Management Accounting Financial Strategy Strategic Level Award - CIMA Advanced Diploma in Management Accounting Practical Experience Recorded as a Career Profile with record of skills development (RSD) Minimum of Three Years of Relevant Experience Paper P5 - Integrated Management Paper P2 - Management Accounting Decision Paper P8 - Financial Analysis Managerial Level Paper P4 - Organisational Management and Information Systems Paper P1 - Management Accounting Performance Evaluation Paper P7 - Financial Accounting and Tax Principles Pre-requisite Entry Requirements (e.g. CIMA Certificate in Business Accounting) Prior experience can be included

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)

Study Routes Managerial Level - Alternative A

Study Routes Managerial Level - Alternative B

Study Routes Managerial Level - Alternative C

Study Routes Strategic Level - No Alternative

Current CIMA 2000 Curriculum

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%

New CIMA 2005 Curriculum

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%

New CIMA 2005 Curriculum 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 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 (I) The finance function - 10% (ii) Sources of long term finance - 30% (iii) Sources of short term finance - 20% (iv) Working capital management - 40%

New location of current content 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% 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%

Current CIMA 2000 Curriculum

Current CIMA 2000 Curriculum 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%

New CIMA 2005 Curriculum

New CIMA 2005 Curriculum 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%

New CIMA 2005 Curriculum P5 Integrated Management A. The basis of strategic management - 30% B. Project management - 40% C. The management of relationships - 30%

New CIMA 2005 Curriculum 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%

New location of current content 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% 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%

New location of current content P5 Integrated Management A. The basis of strategic management - 30% B. Project management - 40% C. The management of relationships - 30% 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%

New location of current content 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% 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%

New location of current content 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% 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%

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

P10 - TOPCIMA Is it similar to the current Paper 15 - MA Case Study? Further unseen material will be provided in the examination, together with the ‘requirements’ (question)

P10 - TOPCIMA So what is different to the current Paper 15 - MA Case Study? 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

TOPCIMA Assessment Matrix

TOPCIMA Assessment Matrix

TOPCIMA Assessment Matrix Example: Criteria - Technical “…have a sound technical knowledge of the specific subjects of the curriculum” This rewards the knowledge itself

TOPCIMA Assessment Matrix Example Criteria - Application “…can apply technical knowledge in an analytical and practical manner” This is about the way in which the knowledge is used (or not!)

TOPCIMA Assessment Matrix Example: Criteria - Focus “…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

P10 - TOPCIMA So what is different to the current Paper 15 - MA Case Study? 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

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)

Practical Experience Requirements - Have They Changed? 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

Practical Experience Requirements - Have They Changed? The skill statements required in the RSD will fall within three headings: personal skills interpersonal skills organisational skills

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

The CIMA Certificate in Business Accounting - What is happening to it? Other exempting qualifications can be used as an entry route into the CIMA Professional Chartered Management Accounting Qualification

Lecturers’ conference 2004 Sponsored 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!