The Institute of Cost Accountants of India

(Statutory Body under an Act of Parliament)

CMA Target Success

HEADQUARTERS: CMA BHAWAN

12, SUDDER STREET, KOLKATA-700016
PHONE: +91 33 2252-1031/1034/1035/1602/1492
Fax: +91 33 2252-7993/1026/2392/2872

www.icmai.in
Delhi Office: CMA BHAWAN
3, INSTITUTIONAL AREA, LODHI ROAD, NEW DELHI – 110003
PHONE: +91 11 2261-8645, 2262-2156
FAX: +91 11 2462-2156, 2461-8645, 4258-3642
Behind Every Successful Business Decision, there is always a CMA
 CMA Target Success

CMA S.C.Mohanty CMA Dr.A.S.Durgaprasad

President Vice-President

It gives me immense pleasure to "CMA Target Success" - study and

recognize the contribution of Academics examination preparatory guidelines
Department to facilitate CMA students for CMA students is prepared by the
by providing them proper guidance for Academics Department under the able
effective learning and enriching guidance of Chairman, Board of
knowledge. Studies Committee.

I am confident that the students' will This is the need of the hour and I am
definitely gain success if the guidelines confident this little endeavor
provided in this title "CMA Target attempted to guide the students shall
Success" is followed in true letter and be instrumental in making their
spirit. strategic plans for effective learning
and achieving success in their
I wish you all success in life and hope you endeavor.
all qualify the examinations with flying
colours and join the CMA Profession. Be a proud Member of the CMA
Profession.
May God Bless You All.
God Bless
CMA S.C.Mohanty
President CMA Dr.A.S.Durgaprasad
Vice-President

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 CMA Target Success

From the Desk of Chairman, Board of Studies Committee From the Desk of Chairman, Training & Educational

Facilities ( T&EF) Committee

Dear Students,
Dear tomorrow’s CMAs,
It is indeed a privilege to present before you "CMA
Target Success" - a guidance to facilitate your
It is indeed a privilege to address and interact
strategic study plan to learn and represent during
with you all to share our thought process to be
Examinations to achieve success.
engaged for effective learning while pursuing CMA
Course.
To equip you all, Institute has provided the required
We are proud to be a member of this esteemed
and sufficient information to the students for
Cost & Management Accounting Profession, our
preparation of subject, model test papers and guidance
Alma mater.
to face the examination. It is observed that many
There was a demand from the Faculty and
students are missing the information available at
Students across the board to suggest guidelines
various places - prospectus, study materials, institute
which would facilitate the teaching and learning
website and circular released from time to time. An
mechanism.
attempt is made now to bring the information in a
sequential order at one place enabling the student to
The Academic Department (erstwhile Academic
prepare for studies as well as for examination.
wing in the Directorate of Studies) have already
contributed by providing - Teaching Guide for
Swami Vivekananda said on way to success "Take up one
Faculty, PPTs for Foundation, Intermediate and
idea, make that one idea your life, think of it, dream of
Final students. This is to bring about uniformity in
it, live on that idea. Let the brain, muscles, nerves,
teaching-learning mechanism.
every part of your body be full of that idea, and just
This "CMA Target Success" guidance booklet
leave every other idea alone. This is the way to
which is prepared by the Academics Department
success".
under the able guidance of Chairman, Board of
Swami Vivekananda said on concentration "The very
essence of education is concentration of mind not the Studies Committee, is indeed a great endeavour
collection of facts. If I had to do my education over and shall be a road map for their all-round
again and had any voice in the matter, I would not study success.
facts at all. I would develop the power of concentration At this juncture, I wish to place on record my
and detachment and then with a perfect instrument I gratitude for the passionate contribution of
could collect facts at will." the team and Board of Studies and
I extend my appreciation to the Academics Department
Directorate of Studies of our Institute, who
and to CMA Chiranjib Das, Joint Director, Head-
are moulding the NextGen CMAs.
Academics Department (Board of Studies) for bringing
out this value added book-let at short notice.
I wish you all a great success in life.
Dear Student, if you study hard during examination, God Bless
you can face the examination with ease. I wish you good CMA. T.C.A.Srinivasa Prasad
studies, success in examination and an excellent career. Chairman,Training & Educational Facilities
CMA Sreshti DLS (T&EF) Committee
Central Council Member
Chairman, Board of Studies Committee

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 CMA Target Success

To our Future Leaders and budding CMAs

You all may be aware about the features of
this Syllabus 2012. We are now widely
Dear Students,
recognized by statutes as CMAs from
erstwhile CWAs.
With the growing complexity and challenges in
doing business, there is a need to get ourselves “CMA – Transforming Accountants from
technically and professionally equipped through Ledger to be Management Accountants
gaining proper knowledge while getting and Business Leaders for Top Management
prepared for CMA Course. You all are Positions”
concerned how to go ahead with the
preparation and what is the best path to CW
A

achieve success in Examinations.

CMA

This is one of the important stimulant for ours

You are all aware that Institute has introduced
introducing the Syllabus 2012, which aims to
"Syllabus 2012", the first term of Examinations is
address various issues leading to effective
already conducted in December 2013 and
and efficient managerial decision-making.
results were also declared in February, 2014. We
The successful completion of each of the
also have "Syllabus 2008" which is operational
courses, viz., Foundation, Intermediate or
upto June 2015 Term of Examination.
Final,

We will now guide you to the pathway which will

increases the potential for employment in
facilitate you to make proper studies and
respective levels at different sectors/areas.
prepare for writing Examinations under this new
Syllabus, which is an industry-oriented course
How to Prepare for Exams
enriched with employability skills embedded.
Make effective use of the state-of-art curriculum  Time Management
 Study realistically
and shape your future.
 Make Healthy Choices
 Sleep
 Do not Cram
Syllabus 2012:  Study early - Read direction
The objective is to equip your thought process
and streamline your actions to gain adequate U will definitely gain Success
knowledge of subjects and getting ready for
Syllabus 2012.

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 CMA Target Success

12 hours per day for his going to college or

Time Management - a Reality check
study centre or group study or any other
work whether or not incidental to studies.

(2) No of Hours available per subject for

doing exclusive studies if appearing for both
groups:
Numerical Analysis:
If you say that I have 6 months to study for my
Intermediate/ Final Examinations (a) Net Available hours (as per above
Time available as demanded 4,320 Hours estimate) = 540 hours
is 6 months = 180 days x 24 hours (b) No. of subjects = 8
Less: Proposed time to take 1,080 hours (c) Available hours per subject = 540/8 =
rest/sleep @ 6 hours per day
67.5 hours
= 180 days x 6 hours
Less: To keep fit and clean 360 hours
(3) Make your Study Plan accordingly so
including time required to have
that both learning and writing skills are
food throughout the day say @ 2
hours per day
getting developed during the course of your

= 180 days x 2 hours study.

Less: Time required to meet family 180 hours

commitments @ 1 hour per day(
most conservative estimate)
= 180 days x 1 hour
Less: If you are a working person 2160 hours
then time involved from
preparation for going to office and
coming back @ 12 hours per day (
on a conservative estimate)
= 180 days x 12 hours
Net Available hours for Study during 540 hours
this 6 months time period

Note:
(1) Study report on time management estimates
that in majority of the cases, even a Student
who is not a working person, is engaged about

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How to Get Prepared - Study Realistically Your First Jerk from the Starting Point

REFERENCE Materials available for Students:

(1) Study Materials - in hard copy as well as
Syllabus 2012 is prepared on the following parameters:
PDF files sent to their respective e-mail ids
 Based on 6 skill sets - knowledge,
on the date of registration;
comprehension, application, analysis,
synthesis and evaluation. While the first 4
(2) PPTs for all Subjects and all Chapters
skill sets are relevant for Intermediate, all
(uploaded in website) - Intermediate - 3942
the 6 skill sets are relevant for Final
slides (for 8 subjects); Final - 3794 slides (for
Course.
8 subjects);
 Mapped with four knowledge pillars
(KPs)- management, strategy, regulatory
(3) Suggested Answers of Examination
function and financial reporting. While
Questions: - released on the date of
the first 3 KPs are relevant for
publication of results;
Intermediate, all the 4 KPs are relevant
for Final Course.
(4) Practice Test Papers (PTPs), Revisionary
 Increased emphasis on accounting,
Test Papers (RTPs), Mock Test Papers (MTPs);
analysis, reporting & control in Final
Course.
(5) Under Students menu in website
 Case study based analysis on strategy,
(www.icmai.in) Archive contains Previous
performance measurement, reporting,
term Examinations PTPs, RTPs, MTPs for
corporate & allied laws, taxation, ethics and
reference;
governance. Case Study based analysis in
Final Papers 15,19 & 20.
(6) PTPs, RTP & MTPs are not only uploaded
 Based on section wise weightage - within
in website, but also sent to individual e-mail
each subject, section wise weightage marks
ids of students. It is suggested to update the
are given.
e-mail ids with the Institute;

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 CMA Target Success

(7) Suggested Answers for each examination

"As you start the sprint of your CMA
are uploaded on website immediately on
announcing examination results; Career"

(8) Examiners reviews for each examination are INTERMEDIATE Course

uploaded on website on announcing
There is a change from topic-wise
examination results:
weightage to section-wise weightage in all
the papers. Hence, we suggest that there
(9) Student e-newsletters, separately
should not be any selective study.
developed for Intermediate and Final, are
(1) Ensure that all topics are adequately
released every fortnight and are mailed to e-
covered.
mail ids of students. Hence, students are
(2) Avoid making selective study of some
advised to subscribe to e-newsletters on
chapters, as you are entering into an
Institute's website.
area of uncertainty.
(3) For practical (non-lab based) papers,
Time Schedule for Publication of PTP,RTP like Papers 5,7,8,9,10,11,12 (company
accounts portion), especially refer to
& MTPs
the wide range of illustrations available
Reference Sets Date of Publication in the study materials. Try to solve them
PTPs 1/2/3 (only 3/2.5/2 months prior to
on your own. This will help to increase
questions) exams
your analytical and application skills.
PTPs Answers 15 days after release of
1/2/3 question sets
(4) In Paper 5 & 12
RTP 1 set (Q+A) 1.5 months prior to
exams
(i) Must give special emphasis on

MTPs 1/2 (only 1 month/ 3 weeks prior Accounting Standards and its
questions) to exams application
MTPs Answers 7 days after release of (ii) Must attend questions and answers
1/2 questions for all sections.
(iii)All workings must form part of your
answer. Do not forget to refer/write the
working number in your solution.

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 CMA Target Success

(iv) Revised Schedule VI and its There is one more advantage in this above
application must be made /displayed prescribed method of answering:
wherever required. “Since you have mentioned all the points at
first, even if you fail to detail/explain any of
(5) In Paper 6, 7, 11,12 them, due to paucity of time or otherwise, it
(i) Must write the provisions correctly. creates an impression on the examiner,
Sometimes examples are better based on the points which are already
expressive than written statements. detailed therein”.
Hence, citing suitable examples with
related case laws would provide an Hence, it is always advisable to attempt and
edge over others. write those answers, which are best known
(ii) Mentioning correct sections/sub- to you, during an examination.
sections is much appreciable, but it is
always better to omit than to commit a (6) In Paper 7 & 11 (practical
mistake. If you are unable to remember problems/illustrations)
the correct section number, then (i) Must have a thorough
please do not quote any other number. understanding of the provisions.
If you quote such wrongly, then you are Must study all the illustrations
writing a different law. provided in the Study Materials.
(iii) Read the provisions thoroughly. Start (ii) Start solving the “Practice Test
writing them after your reading is over. Papers” once they are uploaded
Remember, it is said that effectiveness in the website.
of reading gets reflected when you start (iii) Solve the Practical problems must be
writing them. There is no need to write in accordance with the
descriptively, rather, you may write the prescribed/applicable law. While
main phrases/ major points. This will help practicing, develop the habit of
you to make a better representation writing the provisions also. This will
even during the Examination. It is improve your writing skills and the
always advisable, to start the same can be sharpened over the
descriptive answers, by practice period. You will derive
writing/highlighting the major points first, immense benefit during
followed by detailed description. examinations.
(iv) Read the questions very carefully.

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Utilize the first 15 minutes of your reading time. (7) In Paper 8 & 10
Remember, for some questions asked, the
answer may be embedded in the question itself. These are papers based on Generally
Example: Say in Paper 7, a question is asked as, Accepted Cost Accounting Principles and
to fill in the blank: techniques therein. There is a major
“Annual Value of a House Property, which is not transformation, especially in the designing
let out will be ……..”. of contents as compared to Paper 8 under
Syllabus 2008.
Interpretation of this question:
 There is only one House Property, as the Some notable value additions:
word “a House Property” is used; (i) Elements of Cost – like Materials,
 Since the H.P is not let out, then it is “Self- Employee and Overheads are strictly
occupied”. based on CAS (Cost Accounting
Standards). The calculation is strictly as
Answer: “NIL”. [Annual Value of a House per the applicable standards.
Property, which is not let-out is NIL] (ii) Greater emphasis on application and
Remember, this is just an example and there analysis
can be a wide range of examples, which may (iii)Introduction of Financial Management
be cited. with 40% weightage in Paper 8
(iv) Introduction of Managerial Economics
The art of reading the provisions of law, – basics in Paper 10 [Section C].
enhances our understanding and knowledge (v) Introduction of basics of “Cost
further. This also adds value to our writing skills in Accounting Record Rules and Cost
future too. Audit Report Rules,2011” – to give an
overview of the need, importance and
As we are gearing up to grab the professional methods of maintaining cost records
opportunities and responsibilities coming the  Students should thoroughly study the
CMA way, it is imperative that we must get contents provided in the study
ourselves fully equipped and knowledgeable to materials.
meet the expectations of stakeholders.  Solve the “Test Papers for Postal
Students” (available in the website)
and “Practice Test Papers”.

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 Equal emphasis on both the sections of managing finance and ascertaining cost of
Paper 8 [Sec A- Cost Accounting and funds.
Sec-B ; Financial Management]  These acquired knowledge, now forms
 Must practice illustrations given in the basis to make effective application
Section C of Paper 10. Application of in operations management
these techniques forms the basis of  The strength of this Paper 9 – operations
managerial decision-making. management vests on the effective
application of some basic operations
(8) In Paper 9 research techniques like linear
This paper is having a unique combination of programming, assignment,
Operations Management & Information transportation, queuing theory,
System. It is known to us that “Information” is simulation, inventory models. These
the basis of “Knowledge”. The role of a CMA would help our students to grasp and
is much widened and strengthened with acquire the domain knowledge. Further,
utilization of available information for since these are practical/mathematical
improving efficiency and effectiveness in based applications, these would help
operations. Students should note the logic of them to secure/obtain good marks.
placing “Paper 9 – Operations Management  Now, with the application of information
& Information System”, in the midst of “Paper technology and having some basic idea
8 – Cost Accounting and Financial of ERP and SAP – relevant modules, as is
Management” and “Paper 10 – Cost & used by corporate bodies, the
Management Accountancy”. employability would definitely increase
Paper 8 gives us the basics of cost manifolds.
accounting and generally accepted  After gaining adequate basic
cost accounting principles and knowledge from Paper 8 and Paper 9,
techniques now the student is to study Paper 10 –
Paper 8 also depicts the basics of financial Cost and Management Accountancy –
management. which is an application of that
knowledge only.
The role and responsibilities of CMAs are even  Students are advised to understand the
wide spread than as compared to any other bondage and interlinking amongst
hardcore finance professionals. We must know / different papers under Syllabus 2012.
possess a first-hand idea – especially in fields of

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Suggestions:
There may arise issues, which may be raised,
especially regarding the technique adopted for
solving problems on
“Transportation”. We appreciate that there may
be different paths/roads that may be
demonstrated by your faculties/mentors, but all
roads would lead to the same destination/goal.
Hence, you may follow the most appropriate
and acceptable method. All workings and
notes must form a part of your answer.
(9) In Paper 12 (Auditing portion)
It is a general belief that Auditing is a theoretical
subject. This is a gross mistake. The effectiveness
of audit is achieved only when a person is fully
aware of different other statutes. Say,
(i) You are finalizing accounts – where there is a
Closing stock. As an auditor, your duty is to
ascertain whether there is a correct
Valuation of Inventory or not
 Hence, you must be aware of CAS-6
(Material Cost) as well as AS-2 (Valuation of
Inventories).
 Remember, a wrong valuation may tilt the
reported profit of the organization.
 Even, this shall affect the Assessable Value in
Central Excise. (An important portion
covered in Paper 11).
 Also this will affect calculation of “Business
profits” (covered in Paper 7).
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Hence, determining correct valuation is of
immense importance.
(ii) You want to ascertain the correctness of
value of any Asset or Liability -
 as an auditor, you must have exclusive
domain knowledge of asset and liability
accounting
 knowledge of applicable accounting
standards
 Knowledge of business process (this is
which is mentioned in Paper 9- Section
A, SN1).
Hence, we may conclude the Auditing is
not a theoretical subject. However, for
fitness of things, we only require to detail the
process/procedures, which apparently give
a view of being theoretical in nature.
Suggestions:
 There is a need to understand the
provisions of the applicable laws,
standards, process, procedures. This
will facilitate an auditor to seek
proper explanation and information
from the management, while an
audit work/assignment is
undertaken.
10
 CMA Target Success

(5) Paper 5 – Financial Accounting &

Linking Intermediate with Final Course
Paper 12 – Company Accounts &
There is a link between topics covered under
Audit also forms the basis for
Intermediate and Final Course. The topics are
advanced studies in areas of Paper
discussed in an escalated manner giving
18- Corporate Financial Reporting.
emphasis and proper insight to the topic and
(6) Paper – 9 – Operations Management
relevance in that stage.
& Information Systems forms the
Example:
basis for further studies in respect of
(1) Topics of Paper 10- Cost & Management
topics covered in Paper 17 –
Accountancy – as relates to managerial
Strategic Performance Management.
decision-making is also discussed at a
Topics of Operations Research,
greater magnitude at the Final course in
Statistical Application are covered at
Paper 15- Business Strategy & Strategic
different magnitude in Intermediate
Cost Management. This is especially in
and Final Course.
areas of decision-making.
(7) The analysis which is covered in
(2) Topics of Law in Paper 6 – especially
Paper 5 - Financial Accounting,
Governance is also discussed in Paper
Paper 12 – Company Accounts &
13 – Laws & Ethics & Governance
Audit helps students to study and
(3) Topics of Paper 7 – Direct Taxation and
make analysis while preparing for
Paper 11 – Indirect Taxation are forming
Paper 20 – Financial Analysis &
the basis for effective/proper application
Business Valuation, especially the
while studying Paper 16 – Tax
Financial Analysis portion.
Management & Practice
(8) Approach to study Business Valuation
(4) Topics of Paper 8 – Cost Accounting &
portion in Paper 20 is grounded in
Financial Management. The portion of
Paper 8 – Financial Management
Cost Accounting forms the basis for
portion, Paper 12 – Company
further studies under Paper 19 – Cost &
Accounts portion.
Management Audit, especially the cost
(9) Internal Audit, Operational Audit and
computation aspects. The portion of
ethics which are discussed in Paper
Financial Management which is freshly
12 – Company Accounts & Audit, in
inducted in the Intermediate syllabus is
Audit portion is also covered at a
forming a link with Paper 14 – Advanced
greater magnitude in Paper 19 –
Financial Management.
Cost & Management Audit.

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Hence, the Students pursuing Intermediate adequately covers Companies Act, SEBI,
Course are advised to study effectively for Industry-specific laws and also Governance,
proper understanding and knowledge Ethics. While the basics of these were
adequate gain while pursuing the Intermediate already covered in the Intermediate (Paper
Course only. 6), here the greater emphasis is on the
Remember, your grasp and command over the procedures and compliance issues. You
Intermediate subjects shall form a strong may expect small case lets to be solved
foundation for your desired performance at the which would require analysis, synthesis and
Final Course. effective evaluation.
(2) Paper 14 – Advanced Financial
Management

The basic framework is aimed to provide a

wide spectrum of knowledge and
understanding of Financial Markets and its
intermediaries, corporate and financial risks,
financial decision-making under situations of
certainty as well as uncertainty. The basics
are already discussed in Paper 8- Section B
(Financial Management). The analytical skills

FINAL Course of yours would help to be attaining success

as CMAs – be in practice or in service.
(3) Paper 15 – Business Strategy & Strategic
Cost Management

For each of the subjects in Final Course, special The success of laying a business grossly vests

emphasis is given on Case Study Analysis. on understanding and study the

Cursory views of different subjects are laid down environment (economic as well as non-

for your guidance: economic), forecasting, making effective

strategies to gain business success. A theory

(1) Paper 13 – Corporate Laws & Compliance very well known to us is “Game Theory”.

A student at this stage is required to have

adequate knowledge of corporate laws and (a) Say, today if Coca Cola offers 2 litres

compliance requirements. This paper of its product/s with an additional 1 litre

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free of cost, - what is the impact of this business You all must have watched a recent
decision, taken by Coca Cola on Pepsi? What advertisement by “HAVEL’s FAN”. The
would be the strategy taken by Pepsi to Punchline/Tagline is “HAWA BADAL RAHI
combat “shifting of consumers” from Pepsi to HAI”.
Coca Cola? The theme selected, shall definitely compel
us to think about:
This is interesting to be noted, as to how Coca  Our social responsibilities ( when it
Cola Company could accommodate 3 litres ( 2 shows the OLD AGE HOME)
litres + 1 litre free) of their product at the MRP of  Women empowerment – which is
2 litres. What is the cost structure? What was the adequately addressed [When the
amount of loading earlier, which has allowed ‘Bride’ expresses his desire to take the
them to even accommodate this extra 1 litre ? ‘title/ surname’ of the ‘Groom;]

The basics of these are found from the financial We may cite many such examples, like the
records (covered in Paper 5), the cost records punch line/tagline of an advertisement
and its maintenance (covered in Paper 8 and paves the path of business success. These
Paper 10). These are interesting facts to are “Business Strategies”.
ascertain, which would help you as a CMA to
take effective strategy and gain competitive In furtherance herewith, Section B deals with
advantage. ‘Strategic Cost Management’. It may be
noted that the basics of these are already
(b) Say, what is the impact on covered in Paper 10 – Section A. Now that
demand/turnover of your products – if you we are trying to align the business strategies
are making advertisement/sales promotion to be taken based on the cost information.
through a “Celebrity brand ambassador” or On the contrary, we may say, the
“without a celebrity brand ambassador”. effectiveness and success of any business
strategy depends on how effective we are
Here, I am trying to mention – the effectiveness in managing our costs. The section deals in
of “theme” or “Punchline/Tagline” selected for such relevant areas of cost management,
an advertisement. which are very near and dear to a CMA.

Remember, CMAs help business to grow,

make profits and sustain. We CMAs do not

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 CMA Target Success

confine ourselves in reporting only. We work for

stakeholders and offer our services for the best Similarly, there are many other standards,
interest of the society. say like CAS-2 (Capacity determination)
There is a famous saying, which is stated here for which should be referred by Excise
your reference and understanding: Authorities especially while deriving some
“Grow old with me ….the Best is yet to be…” meaningful information through ER-7
(Annual Capacity Statement). Even, CAS-5
(4) Paper 16 : Tax Management & Practice may be referred for making application in
all those industries, who are taking freight
It may be noted that the element of tax abatement under excise laws.
component that enters into a unit of a product
or service, manufactured or rendered in India, Having domain knowledge of this subject is
ranges, between 40-48%. CMAs has a major role of immense important for CMAs. You all by
to play, by making an effective application of this time have already enriched yourselves
Generally Accepted Cost Accounting Principles through study of Papers on Direct Taxation)
and its techniques, Cost Accounting Standards and Indirect Taxation at the Intermediate
for making effective assessment under various level.
tax laws in India. By saying this, we do
propagate the calculation of assessable value In this paper, greater emphasis is given on
(for products under excise laws, imports under the procedural aspects, adjudications,
customs laws, value of taxable service), appeals in areas of – direct and indirect
valuation under transfer pricing regulations( taxation, with special emphasis on
both on international and domestic International Transactions.
transactions), determination of margin of
dumping, imposing trade remedy measures – Also, there would be case lets/case study
should be made uniform by effective based questions, which needs to be
application of Cost Accounting Standards and answered.
GACAP.
Example: CAS- 4, issued by the Institute and duly We would suggest you to read the case
notified by the CBE&C, helps the Revenue studies/ situations and legal
Authorities to bring about an uniformity in interpretations/court decisions, on various
estimating cost of products which are captively aspects – provided in Paper 16 Study
consumed. Material under this syllabus.

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It would be of immense help to you all. Further, measuring performance – you have
please be updated with the “Practice Test already had a first- hand knowledge
Papers” (to be uploaded and even sent to your while studying ‘Operations
individual e-mail ids in August, 2013) and RTPs Management’ in the Intermediate
(Revisionary Test Papers) for December, 2013. Course
The success of a CMA is attained and much (iii)Section C – deals with Enterprise Risk
recognized when strategic business decisions Management
are taken and implemented through an Analysis of performance - both in areas of
efficient tax management (and not tax economic performance and non-economic
evasion). Remember, Tax is a Social Cost, which performance are based on different
we all need to Pay. parameters/indicators. CMAs play a vital
role in ascertaining these results – which
(5) Paper 17 – Strategic Performance would help them to take corrective decision
Management and/or making of further effective business
strategies – to uphold the interest of the
This subject widely covers those aspects which stakeholders. Efforts should be made to
helps to make/ascertain ‘to evaluate understand the implication of each of these
performance’ of a business entity, based on sections.
the “Business Strategies” undertaken and
executed. It also helps to measure the Suggestions:
effectiveness of such “strategic cost decisions”
taken by the management.  Please follow the theme which is
underlying this subject;
It may be noted that this subject contains three  Must make a reference to the
sections: contents of Study Materials;
(i) Section A – deals with performance  Follow the ‘Practice Test Papers’ (to be
management aspects – this section is related uploaded in August,2013)
with the making of ‘Performance Appraisal  We will be uploading Case lets/case
Report’, which we will study in Paper 19 – studies on this paper from August 2013
Form III of Cost Audit Report. onwards. These are to be solved and
reverted back to us via e-mail.
(ii) Section B – deals with IT & Econometric
tools which may be effectively applied for

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(6) Paper 18 : Corporate Financial Reporting (ii) preparation and consolidation of

accounts of holding companies and
A subject which deals with disclosure, reporting their subsidiaries;
with transparency. A first measure of business (iii)various aspects of external reporting;
performance analysis which can be ascertained (iv) government accounting standards
through this reporting. Various schedules and and procedures
notes hereunder uphold whether there was (v) Sustainability reporting – and its
proper compliance or not. recent developments

Say for example:

(i) An amount of penalty paid to RoC Suggestions:
(Registrar of Companies) is identified in Since some of these major issues have been
the Working Notes, Schedules (forming dealt by you all in the Intermediate level:
part of accounts). We may construe,  it is imperative to have a thorough
that there was an event of non- reading and understanding of the
compliance as per requirements of different accounting standards and
Companies Act in India its application for evaluation and
(ii) An amount of interest was paid to Tax synthesis
Authorities ( be under Direct Tax laws  must make a reference to the
or Indirect Tax laws) – holds the fact problems/illustrations in the Study
that there was some deviation from Materials;
the laid down procedures  practice illustrations which are
representing different situations;
Similarly, the manner/ mode of calculation of  understand the logic – what, where
profits for declaration of dividends – whether it is and how it is getting changed
as per the applicable laws can also be  check the application of
ascertained from the financial reports and accounting standards;
related documents, which are published by a  special emphasis on the disclosure
business entity. requirements as per
This subject also deals with: statute/applicable standards
(i) preparation of accounts under different
business combinations;

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(7) Paper 19 : Cost and Management Audit Suggestions:

Having obtained adequate knowledge
By this time, you must have made a sketch of especially in making/maintenance of
the strategy to be adopted keeping in mind the financial records, application of cost
importance of each paper, especially their accounting standards, generally accepted
inter-linkage and bondage. cost accounting principles and its
techniques, a student at this level is
With the adoption and notification of expected to be ready to meet the
Companies (Cost Accounting Record) Rules, expectations of stakeholders/profession and
2011 and Companies (Cost Audit Report) Rules, even personal.
2011, by the MCA, GOI – the role and increasing
importance of CMAs are duly recognized.  Refresh your memories by thorough, in-
depth reading and analytical
The Profession is wide open and invites young understanding of the Cost Accounting
budding professionals to join the CMA Practice – Standards
strengthen the brigade. It may be noted that –  Check the application of Generally
while you prepare/maintain Cost records for Accepted Cost Accounting Principles(
‘Cost Compliance Report’ or ‘Cost Audit GACAP)
Report’, you may like to make a preferential use  Have a first-hand trial on X-BRL Reporting
of those records, which would facilitate your on a dummy module
client to have a fair assessment even under the We would be organizing such workshops
taxation laws in India. These are emerging shortly. The details of which would be
professional avenues for CMAs in India. informed both through the website update
as well as on your individual e-mails.
This paper also contains various audits being
termed as audits for ‘Management’ or (8) Paper 20 – Financial Analysis & Business
Operational Audit. This helps a CMA to have a Valuation
totalitarian approach, while he is either in acting A first question which may arise is - why this
as an Auditor or a Management Consultant – to paper at last?
prescribe ways and means for sustainable
growth and development of such business Appreciate, that Analysis of Financial
entity. Statements can only be made after the
preparation and publication of corporate

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financial reports. Based on the degree of Spice up your revision

fairness and correctness, it is advisable to
Try to draw logic flow charts to memorize
ascertain the value of a business or group of
main points. Remember Picture states
assets or an asset/liability (individually).
thousand words spoken.

We trust that the topics and its contents would

Refer to Value Additions provided by the
enrich the domain knowledge of CMAs to a Institute through Academics Department
much greater height.
For both current and past terms consult:

Obtain domain knowledge, enrich yourself –  Practice Test Papers ( 3 sets each

qualify in the Finals and join CMA per subject)

Profession/Family as a “Practitioner”.  Revisionary Test papers

 Mock Test papers (2 sets each per

Revision Schedule subject)

 Refer to e-newsletters issued
fortnightly, as this contains many
Draw up a revision timetable special topics or topics of relevance,

Research shows that shorter 20-30 minute spells discussed in lucid manner with

work best, because your concentration is much various examples.

higher. We therefore recommend taking short, Make summary notes

frequent breaks. We also advise to mix the order Making notes is by far the best way to
of the subjects. memorize lots of information.

Get down to it in the morning

Reward yourself
You have to make a start at some point and
 Take break
doing it sooner rather than later is a very good
 Maintain balance between study
idea. Try to stick to our draft revision schedule
and leisure
and start revising in the morning - research
For instance go to a cinema with friends
shows that you are more likely to do all the
after a productive day of revision or treat
planned work if you start early, because as it
yourself to something sweet. Work hard,
gets closer to the evening, there is bigger
play not-quite-as-hard is the motto here.
tendency to get outside.

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Use your family and friends Mental Preparation for CMA

 Ask people around you to test you and
give you feedback.
 This is not only a good way to revise but
also a good way to have a break from
the hard work.
Think positive!
Examination
There is no substitute for hard work and
relentless study; still there are some parallel
factors that affect students appearing for
CMA examination. Mental Preparation is
one of them. It is discussed elaborately as

At the end of the day, it's not all about studying. follows:

There are plenty of people who did well in life

Self Reliance:
without 100 per cent in every single exam, or
 Always rely on yourself. Do not loose
who were actually pretty useless at school and
your confidence always think
university. Your life isn't over if you don't ace the
positive and work toward targets.
exams, so take the pressure off yourself..
 If you feel low then read some books
Following these tips you will get loads of work
or watch some videos which will
done, feel great about yourself and still have
inspire you and make you mentally
plenty of time to relax with your friends and
strong.
family. Good luck, now get down to those
 Keep in mind confidence is good
notes!
but overconfidence always sinks the

Keep Smiling
ship.

Make a plan to achieve the goal:

Before you start to prepare for your exams,
take some time out to make a plan how you
will prepare yourself for the examinations.
When you are planning, consider the
amount of time you have to devote for
study, amount of time you have to devote
for a particular subject your expected work
routine, family commitments etc. Make a
Did you Smile Today? timetable based on the number of
expected days you have for each paper
you intend to appear in the examination.

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When forming your own timetable try to be  Take a good sleep before the
flexible and realistic. Simply sitting down to study examination. It is most important for your
has little impact. You must have a clear vision brilliant performance.
about what you want to accomplish during your
study times. A good study planning and
adequate preparation are essential factors of Exercise
becoming confident.
Physical activity is very important, in
particular during intense study time. Even
Work hard but calmly and steadily: going for a small 30-minute jog after a day of
Do not rush. Look over your study notes calmly revision will make a huge difference to your
and steadily, rushing will only mean you absorb wellbeing.
less information and need to study longer Physical activity increases heart rate which
overall. makes the blood circulate faster. This in turn
ensures that brain gets more oxygen which
increases productivity whilst reducing
Keep time for fun and refreshment:
tiredness and stress.
 It has been noticed that long sitting may
Find a quiet space
create monotony. It is common to all.
This is a pretty straightforward one: you
Studying same topic for a longer period is
desperately need a place where you can be
often uninteresting. Give yourself proper
uninterrupted for a few hours.
break time to time. When you feel fatigue,
you may get relaxed by doing any other
activity which you like. It will keep you Understanding rather than mugging up the
mentally fresh. concept:
Always try to understand the underlying
 If it is possible then do yoga, meditation to
concepts behind a given topic rather than
enhance your focus and concentration
just mugging up the concept because if
level. It helps to fresh the mind and makes
you cannot understand the concept then
the body healthy.
there is big chance that you will forget the
entire concept after few days and
 Always try to create an environment where
sometime it may not be possible to revise
you feel comfortable and can boost up
everything on the eve of examination.
yourself.

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Discuss what you learn: rather focus on forthcoming exam

Discuss topics, after having revised them, with
your classmates. It helps you to understand your
study material and makes you confident.
Seek help:
because if you find out any mistake on
last exam, it may create panic in your
mind and your whole exam may be
affected.
 Try to set achievable targets for
each day. Otherwise, excessive target

If you are struggling with a particular topic, do may bring frustration.

not be hesitated or feel shy to seek help from  Do not make panic in the exam hall

your teacher and friends because it is not if you see that the question paper is hard.

possible that you know everything. Try to short out those questions which you
know better and solve those at first
because it will help you to increase your
Self-Discipline:
confidence level to solve the harder one.
Maintaining a disciplined life is an important
The last but not the least point is that, if
factor of success as it helps a student to bring
you failed in exams, do not lose your
self control. Self discipline helps in managing the
heart. Learn from your mistakes and start
time and enhances the focus on study.
preparing for the upcoming exam, once
again. “It is unwise to be too sure of one's
Panic Control: own wisdom. It is healthy to be reminded
 Do not take extra pressure at the time of that the strongest might weaken and the
exam because it can create panic in your wisest might err.” ― Mahatma Gandhi.
mind. This can make you perplexed during
the whole exam and force you into making
Reach the Destination
- over come challenges on your way by your
errors that could be easily avoided. The
WILL POWER - "if you think, you can"
easiest way to control your panic is just hold
your nerve and keep believe in yourself and
avoid those students who makes you puzzle
by discussing whatever he/ she has covered,
what are the probable question may come
etc.
 After completing an exam don’t think
about the exam you have already given

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(2) Read the "Revisionary Test Papers" issued

Cross the BAR for every paper/subject. This contains

(Raise ur Standard) questions and answers. Make a note of the

major points to make a summary.

While you are almost ready to appear for

your examinations, Institute will be releasing
Mock Test Papers for making your self
assessment.

(3) Solve the Mock Test Papers.

Do not wait for the answers which will be
“Set your Target to Hit the Bull’s Eye” released as per the time line. Check your
status of preparation after the solution is
released . Take appropriate action.

Develop your writing Skills

How to make appropriate

reference while studying:
(1) Refer to Practice Test Papers issued every
term and also refer the Previous terms Practice
Test Papers available in the website. There are 3
sets issued per subject. Solve them. Check your
answers/solution with the answers of those
questions, which will be provided in website.
Make an analysis of yourself. This is self-
assessment. Draw your future course of action
accordingly.
It is often evidenced that examinees despite
knowing answers fail to complete answers
to all the required number of questions.
(a) Lack of proper writing practice - as we
all are well-versed in using cell phones or
laptops/ computers.

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There is a need to practice writing for long hours h) Ensure you have attempted all the
on a regular basis so that the writing speed is minimum number questions which is to
maintained. be answered. There is no harm if you
answer/solve extra question/s.
(c) Illegible Handwriting - this especially worsens
when you try to speed up for completing
examinations. There may be a possibility of
best answers being poorly showcased.

It is advised to develop writing skills. Further, if

you write the lessons which you have studies,
you will be able to find out mistakes/ errors /
omissions. This will help to make proper
correction at your end.

Tips for Writing Examination:

1) Utilise 15 minutes reading time very DONT EVER LOOK BACK
effectively to choose those questions which
you are most comfortable with.
2) a) Total Writing time = 180 minutes
b) Provision for Normal Loss during exams =
30 minutes
c) Net writing time = 150 minutes
d) Time per 1 mark = 150 minutes / 100
marks = 1.5 minutes
e) So a 2 mark question should be
solved/answered in = 2 x 1.5 = 3 minutes
f) 10 marks question should be answered in
= 10 x 1.5 minutes = 15 minutes and so on.
g) Remember, if you are going beyond this
time schedule, then, you need to gear up
and adjust somewhere.

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We all pray for yours’ Success

GOD BLESS

Disclaimer: Students are supposed to refer to Prospectus, Study Material and

website of the Institute (www.icmai.in) for correct and updated information and to
keep note of changes from time to time.

Printed and published by Academics Department under the guidance

of Board of Studies Committee.
Inaugurated on 8th Day of April, 2014 at the National Students'
Convocation, 2014 held at Science City (Main) Auditorium, Kolkata.

Post your queries to seek feedback:

On Examination issues exam@icmai.in
On Academic matters bos@icmai.in
On Studies related studies@icmai.in
administrative issues

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Behind Every Successful Business Decision, there is always a CMA
 Be a

CMA