IMA's Professional Certification Program Has Changed

In the Winter 2005 issue of Management Accounting Quarterly, I reviewed the history of the CMA[R] (Certified Management Accountant) and CFM[R] (Certified Financial Manager) programs and discussed the relevance of those programs to accounting education and accounting professionals. (1) The purpose of this article is to update parts of the earlier article to reflect changes that have taken place since then. It has been nearly 40 years since IMA[R] offered the first CMA examination in December 1972. At that time, IMA was known as the National Association of Accountants (NAA). (NAA became IMA (Institute of Management Accountants) in July 1991.) CMA stood for Certified in Management Accounting until 1983 when the title was changed to Certified Management Accountant. In December 1996, IMA added the CFM designation (known as Certified in Financial Management until 2004). By 1997, both the CMA and CFM examinations were fully computerized and available year-round. For reasons I'll discuss later, the CFM examination was last offered in December 2007. A Review of the CMA and CFM Programs In 1968, NAA's Long-Range Planning Committee decided that a comprehensive examination was needed to test the body of knowledge required for management accountants. That set the stage for the CMA program, which was officially established in 1972. The first CMA examination, consisting of five 3.5-hour parts, was completed with pencil and paper by 410 candidates at 22 U.S. locations on December 6-8, 1972. Sixty-three of the candidates passed all five parts, and 54 received their certificate in June 1973. To date, more than 32,000 CMA certificates have been awarded--nearly 6,000 in the past five years alone. Initially the CMA examination was offered only once a year, but in 1977 this changed to twice a year, in June and December. In 1983, NAA adopted a code of professional ethics applicable to all CMAs. The then Institute of Management Accounting, which administered the CMA program, changed its name to the Institute of Certified Management Accountants (ICMA[R]). Then, in 1989, membership in NAA became required to participate in the CMA program. The CMA examination underwent its first major revision in June 1991 when it was shorn of one part and half a day to become a two-day, four-part exam. At the same time, Certified Public Accountants (CPAs) were exempted from Part 2 of the exam (Financial Accounting and Reporting). The first CFM exam was offered in 1996. The only difference in the two tests consisted of the material in Part 2, with Finance being the major focus of that section of the CFM examination. CMAs could add the CFM designation by passing the new Part 2 exam. In 2006, ICMA's Board of Regents decided to stop testing for the CFM after the end of 2007. According to IMA, "Although the CFM certification was an excellent program, the program was unable to find a sustained audience. Therefore, the Board of Regents made the decision not to expend further resources on the CFM examination process but rather to dedicate those resources to supporting the Certified Management Accountant (CMA) program. Much of the finance material in the CFM exam was moved to the CMA curriculum." (2) At the time of the announcement, ICMA noted that more than 4,100 people had earned the CFM credential and that 95% of CFM holders were also CMAs. (3) The new CMA examination introduced this year includes much of the same material that had previously been on the CFM examination. The basic character of the CMA examination has remained unchanged since 1972. The exam continues to cover the technical accounting skills and body of knowledge that management accountants need to contribute to the success of their organizations. While the 2010 changes in the exam content and structure are sweeping, the overarching goal of the CMA program is to increase the competencies and capabilities of individuals and organizations so they can protect investors and other stakeholders while generating greater economic value. …