CMA Articleship – Cost and Management Accountant Training

CMA Articleship is a mandatory practical training component of the Cost and Management Accountancy (CMA) course offered by the Institute of Cost Accountants of India (ICMAI). It involves hands-on experience in various areas of cost and management accounting to complement theoretical knowledge.
Key Points:
– Eligibility: Begins after registering for the Intermediate level
– Duration: 3 years total, with specific milestones:
10 months before the Final exam.
15 months before the Final results.
Remaining 21 months post-qualification.
– Training Providers: Practicing Cost Accountants, cost accounting firms, and recognized organizations (e.g., Government, Banks, PSUs).
– Areas of Training: Includes Management Accounting, Financial Accounting, Cost Accounting, Taxation, and more.
– Stipend: Minimum monthly stipend varies by year and type of employer.
– Exemption: Available for students with relevant work experience, subject to ICMAI approval.
The CMA Articleship ensures that students gain practical, real-world experience to become proficient and industry-ready professionals.

Table of Contents

1. Introduction
2. Eligibility and Training Period
3. Companies Eligible for Providing Practical Training
4. Exemption from Practical Training
5. Areas of Training
6. Stipend
7. Leaves and Working Hours
8. Transfer/Change of Trainer
9. Maximum Trainees Allowed
10. Important Forms
11. Conclusion

1. Introduction

Cost and Management Accountancy (CMA) is a professional course specifically designed to build and test the critical accounting and financial management knowledge. It involves three stages – Foundation, Intermediate and Final besides the mandatory trainings as a part of the course.

One such significant training required is the compulsory practical training of minimum 15 months out of a total training period of 3 years, which helps the students acquire practical knowledge which shall come to aid in their profession once they clear the examinations.

The Institute of Cost Accountants of India (ICMAI) passed a new practical training structure in the year 2020 and has also introduced new CMA curriculum in the year 2022.

2. Eligibility and Training Period of CMA Articleship

A CMA student becomes eligible to begin the practical training once he/she registers for Intermediate level. The Institute mandates 3 years of practical training for CMA students. However, it gives flexibility in undergoing training i.e. it is not required to be completed in continuation.

As per the new practical training structure, a student is required to complete 10 months of training four months before the month in which CMA Final examination is due and 15 months of training before the declaration of CMA Final examination result (both or balance group). The balance 21 months training is required to be completed so as to be eligible to obtain membership from the institute post qualification. Thus, the training requirement is broken down to reduce the gap between Intermediate and Final exams, thereby encouraging students to complete the course early.

3. Companies Eligible for Providing Practical Training

A Cost and Management Trainee shall undergo practical training under:

• practicing Cost Accountant or
• a firm of Cost Accountants or
• in any of the following organizations:

1. 1. Central/State Government/Semi-Government/Public Utilities
   2. Banks/Insurance/ Other Financial Institutions
   3. Public Sector Undertakings
   4. Universities, Management Institutes and any other recognized educational institute
   5. Co-operative societies and NGOs
   6. Management Consultancy Division of firm of Chartered Accountants/Company Secretaries
   7. Management Consultant in individual capacity depending on the size of the firm, nature of duties handled by the applicant, etc.
   8. Any other organization(s) with a turnover of Rs. 25 Lakhs in case service sector or Rs. 50 Lakhs for others.

[Note: CA/CS Practical Training cannot be set off against CMA Practical Training.]

Note: If one is not able to find an employer who can impart the Training, he/she may visit the website of the Institute.

One may search these PCMAs/Organizations “City wise” and approach them with their resume for tying up for Practical Training. Opportunities are also being uploaded in the Training Portal of the Institute as and when it arises on:

https://icmai.in/CPT/Opportunities_Available/placement_postbyorg_semi.php

4. Exemption from Practical Training

A student of the Institute who is working or has already worked in any of the recognized organizations and areas as given above can claim exemption from Practical Training by following the procedure given below:

• A student can seek exemption from Practical Training immediately after joining the Intermediate course, or at any time during the course of studies.
• Submission of Online Form T-3 to Directorate of Training and Placement of the Institute along with a payment of Rs. 4,500.
• The students whose applications are received and found eligible on or before 31st May will be eligible to appear for June Examination and 30th November will be eligible to appear for December Examination respectively.

Note: Practicing Chartered Accountants/Company Secretaries are exempted from the Practical Training Scheme.

5. Areas of Training

The areas in which CMAs/CMA trainees put their hands on are very much similar to the roles of a Chartered Accountant. However, in CMA, more emphasis is given on financial and management accounting as compared to auditing and taxation. The following areas, inter alia, are recognised by ICMAI in which students can pursue their practical training:

• Management Accounting
• Cost Accounting
• Financial Accounting
• Financial Management
• Auditing
• Regulatory Compliances
• Direct Taxation
• Indirect Taxation
• Corporate Laws, Industrial Laws, Commercial Laws
• Systems Analysis, Information Technology (including ERP system)
• Project Management
• Banking Operations
• Insurance
• Insolvency & Valuation’Financial ServicesTeaching in Finance, Accounts, Costing, Taxation and Management
• Management Consultancy Services as defined in appendix 6 under Regulation 111 of CWA Regulation, 1959.
• Engineering Services involved in production of power or any manufacturing activities, Project Planning & Management, Quality Assessment, and Supply Chain Management.

6. Stipend

The minimum monthly stipend payable to CMA trainees by their employers is as follows:

*Higher stipend for metropolitan and ‘A’ grades cities.

7. Leaves and Working Hours

General Leaves: A CMA trainee can avail 1 day leave per month with pay.

Examination Leaves: CMA trainees are eligible for 60 days leaves without pay for exam preparation.

Excess Leaves: Any excess leave taken by the trainee is to be compensated by further extension of practical training for that excess period.

Working Hours: The working hours of a CMA Trainee shall be 35 hours per week.

8. Transfer/Change of Trainer

If there is a change in the Principal providing the training, the same needs to be intimated to the Institute within 30 days of such change along with the relevant prescribed documents and fees. Only three changes/transfers are allowed within the period of 15 months of CMA practical training.

9. Maximum Trainees Allowed

The firms and the organisations intending to engage CMA trainees shall have the following restriction on the number of trainees:

10. Important Forms

The entire process for submitting the Forms related to the Practical Training Scheme is online. No offline forms/hard copies related to the Practical Training are entertained. The various forms required to be filled online on the website https://eicmai.in/Training-forms-new/login.aspx as per the requirements are as follows:

11. Conclusion

With the advent of Goods & Services Tax, valuation standards, Ind-AS, changes in Companies Act, 2013, reforms in foreign exchange regulations, etc., the role of CMAs has increased significantly. Completion of practical training as per the Institute guidelines with a zeal to learn will not only push a person to do well in the examinations but also enable him/her to excel in his/her career trajectory.

Performing tasks like budget analysis and planning, being able to make investment decisions and risk management will certainly enhance a CMA trainee’s professional capabilities. Therefore, honest and diligent involvement in practical training will help the students clear the exams while securing deserving marks and also becoming a true professional and industry-ready leader.