How to Crack CMA Final in First Attempt – Subject Wise Approach

The CMA Final is the last and most challenging step for candidates aspiring to become Cost and Management Accountants. Passing this exam opens up significant opportunities in the corporate and industrial world, demonstrating domain expertise and strategic financial management skills.

A well-structured strategy, coupled with a positive mindset, can lead to success in the CMA Final exam. Understanding the exam pattern, knowing the passing criteria, and preparing with a subject-wise roadmap are crucial for clearing this stage.

General Strategies
– Prepare a Study Schedule: Create a detailed timetable covering all subjects, allocating sufficient time for each topic. Stick to the schedule to ensure comprehensive coverage of the syllabus.
– Self-made Notes: Prepare concise notes for quick revision. Include key concepts, formulas, and important points to facilitate efficient last-minute study.
– Conceptual Clarity: Focus on understanding concepts rather than rote learning. This will help in applying knowledge to solve practical problems.
– Mock Tests: Regularly practice mock tests to improve time management and identify weak areas. This practice will also familiarize you with the exam pattern and question types.
– Amendments and Updates: Stay updated with the latest amendments, notifications, and clarifications from ICMAI. Ensure you are aware of any changes relevant to the examination.
– Revision Strategy: Avoid new study material during revision. Stick to your notes and familiar books to avoid confusion and ensure a clear understanding of concepts.
– Time Management: During the exam, manage your time effectively. Allocate specific time slots to each question and avoid spending too much time on difficult questions initially.
– Self-care: Maintain a healthy study routine with regular breaks, physical activity, and adequate rest. Manage stress through relaxation techniques and stay motivated.

By following these strategies and focusing on comprehensive preparation, candidates can enhance their chances of clearing the CMA Final exam on the first attempt. Discipline, consistency, and a positive mindset are essential components of this journey towards becoming a successful Cost and Management Accountant.

Table of Contents

1. Introduction
2. General Planning
3. Subject-wise Planning for CMA Final New Syllabus 2022

1. Introduction

CMA Final examination is the last leg of Cost and Management Accountancy (CMA) Course and the most important box to tick for becoming a Cost and Management Accountant. CMA Final Exams are held twice in a year, in the months of June and December and the curriculum is divided into two groups comprising four subjects each. All the papers involve descriptive type questions.

While covering the vast syllabus of CMA Final, students are required to ensure that they follow the correct preparation strategy and break down the syllabus into small achievable milestones to ensure success in the examination in their very first attempt. As the saying goes

“Focus on the step in front of you not the whole staircase.”

Each paper in the CMA Final New Syllabus is of 100 marks with 30% objective questions (15 questions * 2 marks each) and 70% descriptive (7 questions of 14 marks out of which any 5 are to be attempted).

Below are some of the strategies that can help one plan and prepare for the exam thoroughly and in an effective manner.

2. General Planning

2.1 Looking for the best resources and choosing what suits the best

To prepare for the exam, one will need to gather all the necessary study material ahead of time. Some students are at ease with the ICMAI study material, while others are not. There are various well-known author books that can help; however, a student must not ignore the Institute study material completely.

In order to be decisive, one must have a look at the syllabus and gather an idea about its vastness. Ideally, coaching classes provide a lot of guidance that proves to be beneficial for the students in understanding the concepts rather than cramming topics.

2.2 Prepare a schedule and plan for studies

Before beginning studies, students should create their own study plan and schedule, which outlines all the topics that must be covered as well as the amount of time that must be spent studying each day. Never make plans that will take a long time to complete. Short-term plans should ideally be set for a week or less, so that one can focus on the present and avoid procrastination.

2.3 Making notes

Emphasize the most important topics and concentrate on the concepts that have been questioned regularly in past exams. Further, some important keywords should be underlined and highlighted while studying so that they can be replicated in the exams. Taking enough time to prepare notes so as to cover all the main aspects in a concise manner in addition to attending online or offline classroom coaching saves a significant amount of time when it comes to revision.

2.4 Practice, Practice & Practice

It is natural for people to prioritise the easy subjects and put off the more challenging ones for a later period. However, in this case, doing the exact opposite helps. Determining which subjects one excels at and which ones may require more work can help in analyzing the time and effort required for the course completion, together with maximizing performance in strong areas while avoiding poor performance in weak areas. Solving question papers before sitting for the actual exam builds confidence and also teaches how to manage time.

2.5 Personal Development

Staying up to date on the latest and most relevant news enables a student to use examples in his/her responses, thereby improving the quality of answers besides taking care of physical activity and mental refreshment as part of effective preparation.

2.6 Attempt Paper Smartly

Trying to attempt the whole paper and covering all the questions can be of great advantage for a student. One must be prepared with his/her own strategy that was built while giving mock tests and stick to it. 2-3 hours of panic during the exam can destroy months of hard work. Further, as the examiner searches for keywords in each of the answers which evaluating, highlighting them is of significance if the time permits. Try to finish the paper 15 mins ahead of time so that one can review hnvis/her paper before submission.

3. Subject-wise Planning for CMA Final New Syllabus 2022

3.1 Group III

Paper 13: Corporate and Economic Laws

• Marks Weightage: Section A – Corporate Laws – 60%, Section B – Economic Laws and Regulations – 40%.
• A student may choose to begin with the Companies Act 2013 (comprising 40% weightage) under which more focus should be given to topics like Company Formation and Conversion, Board Meetings and Procedure, Board of Directors, Accounts, and Audit.
• Afterwards, one can decide to complete Corporate Governance (comprising 10% weightage) and further proceed with Economic Laws and Regulations and Insolvency and Bankruptcy Code.
• It is advisable to maintain a separate note for penalties under each chapter.
• Dedicated marks are given for writing section numbers in the answers. Hence, one should maintain a list of important section numbers in every chapter and try to revise those as much as possible.
• Structurally writing the answers in exam is of utmost importance in a subject like law. Hence, one should write an answer in 3 paragraphs i.e.,

1. 1. 1st para should mention the provisions pertaining to the question,
   2. 2nd para should link that provision to the presented case in the question, and
   3. 3rd para should be a concluding para to sum up the answer.

Paper 14: Strategic Financial Management (SFM)

• Marks Weightage: Section A – Investment Decisions – 25%, Section B – Securities Analysis and Portfolio Management – 35%, Section C – Financial Risk Management – 20%, Section D – International Financial Management – 15%, and Section E – Digital Finance – 5%
• SFM is a practical and scoring subject. Special attention towards topics such as Financial Risk Management and Financial Derivatives is required carrying higher weightage as several questions are asked in the exam from these topics.
• Topics such as Investment Decisions, Evaluation of Risky Proposals, Leasing Decisions, and Security Analysis & Portfolio Management must be practiced in writing to understand the structuring of the answers.
• Separate noting of all the formulas should be done to keep them handy.
• Attending mock tests or solving past papers are of great help in revising the solutions as well as maintaining proper speed in answer writing.
• Lastly, one should not ignore the theoretical portion of the subject as one has to answer separate theory questions in the exam. Further, one can write the theoretical concepts even while answering the practical questions in order to make the answers wholesome.

Paper 15: Direct Tax Laws and International Taxation

• Marks Weightage: Section A – Direct Tax Laws – 60% and Section B – International Taxation – 40%
• A candidate may choose to go as per the below-mentioned sequence to cover the whole subject efficiently:

1. 1. Assessment of Income and Computation of Tax Liability of Various Entities, Business Restructuring, ICDS and Return of Income.
   2. International Taxation, a short topic but comprising 40% weightage of paper. Emphasis is to be given on provisions and practice of questions about Transfer Pricing.
   3. Other topics such as Penalties and Black Money Act, 2015.

• Dedicated marks are given for writing section numbers in the answers. Hence, one should maintain a list of important section numbers of every chapter and try to revise those as much as possible.
• Questions related to total tax computation should be practiced as much as possible so that the majority of the concepts can be interlinked and resultantly, retention can be increased.
• Amendments are an integral part of preparation especially w.r.t. taxation as a subject. Hence, notified amendments as applicable for the respective attempt must be taken into account.

Paper 16: Strategic Cost Management

• Marks weightage: The subject comprises Section A – Strategic Cost Management for Decision Making – 60% and Section B – Quantitative Techniques in Decision Making – 40%.
• The subject consists of both practical as well as theoretical questions; and comparatively theoretical part has less weightage.
• One can begin with Quantitative Techniques in Section B which was already covered at the Intermediate Level (comprising of 40% weightage of paper).
• More time and efforts towards chapters like Marginal Costing, Transfer Pricing, Standard Costing, JIT & Activity Costing are required since they comprise 35% weightage of paper.

3.2 Group IV

Paper 17: Cost And Management Audit

• Marks Weightage: Section A – Cost Audit – 50%, Section B – Management Audit – 25%, Section C – Internal Control, Internal Audit, Operational Audit and Other Related Issues – 15% & Section D – Forensic Audit and Money Laundering – 10%.
• Notes for important concepts & Penalties should be made and referred to at regular intervals.
• A candidate may decide to go as per below mentioned sequence to cover the whole subject efficiently:

1. 1. Important topics (Cost Audit Documentation and its Process, Cost Auditors Professional Ethics, Responsibility and Punishment, Cost Audit Program Preparation and Filing of Cost Audit Report)
   2. Management Audit (Management Reporting Issues, Information Systems Security Audit, Operation audit, Internal Control and Internal Audit & Audit of Service Organizations)
   3. Remaining topics

• While preparing to study Audit as a subject, emphasis is to be given on the usage of keywords in answers. Sentence framing as per the model answers is very important for securing good marks in this Paper.
• Forensic Audit and Anti-money Laundering are newly added topics to this paper with a weightage of 10 marks.
• References, wherever possible, are to be given from other subjects like Company Law or Accountancy. Mentioning of Section numbers of concerned provisions of law, the number of Accounting Standards or the number of Cost Accounting Standards will make answers more professional and presentable.

Paper 18: Corporate Financial Reporting

• Marks Weightage: Section A – Indian Accounting Standards – 25%, Section B – Valuation of Shares, Accounting and Reporting of Financial Instruments and NBFCs – 15%, Section C – Accounting of Business Combinations and Restructuring – 20%, Section D – Consolidated Financial Statements and Separate Financial Statements – 20%, Section E – Recent Developments in Financial Reporting – 10% & Section F – Government Accounting in India – 10%.
• Solving each and every question from the CMA study material as provided by ICMAI is highly preferable.
• Starting with topics like Consolidation of Financial Statements, Business Combination and Restructuring, Share Based Payment and Financial Instruments is advisable and then one can proceed with other Ind ASs.
• Theoretical questions are also asked in the exam focusing on topics like Overview of Accounting Standards, Government Accounting, NBFC Provisioning Norms and Accounting.
• Solving mock test papers and solving extra questions on Ind ASs will serve an added advantage in the preparation.

Paper 19: Indirect Tax Laws and Practice

• Marks Weightage: Section A – Goods and Services Tax Act & Rules – 70% and Section B – Customs Acts and Rules – 30%.
• A candidate may study as per the below-mentioned sequence so as to cover the entire subject efficiently:

1. 1. Basics of GST & ITC
   2. Important topics – Place of Supply, Time of Supply, Input Tax Credit, Return and its types and their due dates, Refund, Assessment, Inspection, Search and Seizure (comprises of 40-50% weightage of paper)
   3. Customs

• Notified amendments as applicable for the respective attempt must be covered during preparation.
• Quoting Section numbers of the GST Act is necessary for answer clarity. Hence, efforts should be made to remember section numbers as much as possible.

Paper 20 Elective Paper: Students will be required to select any one of the three elective papers at the time of enrollment for the final course. It is a personal choice of the student to choose among the following subjects:

Paper 20A: Strategic Performance Management and Business Valuation

• Marks Weightage: Section A – Strategic Performance Management – 50% and Section B Business Evaluation – 50%.
• This subject was a part of the old syllabus and one may begin with Business Valuation covering important topics like Mergers and Acquisitions, Valuation of Intangibles as the content is brief in length and can be completed in short time. Further, if read thoroughly, these topics can become one of the most scoring topics of the subject.
• Thereafter, one may proceed with Strategic Performance Management and solve practical problems. One of the important topics include Performance Evaluation and Improvement Tools which should be studied in detail.

Paper 20B: Risk Management in Banking and Insurance

• Marks Weightage: Section A – Risk management in Banking – 60% and Section B – Risk Management in Insurance – 40%.
• This paper is introduced for the first time in the CMA Syllabus for students who are fascinated by the banking and insurance sector.
• It is a combination of calculative and practical topics of different types of risk in Banking for which a formula sheet should be prepared.
• With some theoretical part in Insurance topics, students should highlight important concepts in the study material so that less time is required to be devoted in subsequent revisions.

Paper 20C: Entrepreneurship and Startups

• Marks Weightage: Section A – Entrepreneurial Skill Sets – 15%, Section B – The Entrepreneurial Eco-System – 15%, Section C – Idea to Action – 15%, Section D – Value Addition – 15%, Section E – Scale Up – 10%, Section F – Risk Management Strategies – 10%, Section G – Leadership, Section H – Types of New Age Business – 10%.
• This paper is introduced for students who are inclined towards working, leading, and building a business.
• It is a theoretical subject; therefore, concise notes should be prepared for each topic for the last minute quick revisions.

Please find the link for the model question paper by the Institute – https://icmai.in/studentswebsite/mqp2022_Final.php.

An appropriate strategy backed by a positive mindset can give positive result in clearing this course with excellent marks. Thus, by following the aforesaid preparation strategies alongside perseverance and hard work, utilising the available resources to fullest, one can pass CMA Final Examinations with flying colours.