Chartered Management Accountants are involved at every level in organisations throughout the world. They are crucial members of the management team, making decisions and supplying information vital to the running of organisations in both the public and private sectors.

As Chartered Management Accountant students will be qualified to work in a variety of businesses from large-scale corporations to management consultancy Practises. With over 58,000 students and 44,000 members are employed by organisations such as Procter $ Gamble, ICI, Cadbury Schweppes, IBM, British Airways and CoopersLybrandDeloitte, CIMA is the leading financial qualification for business today.

Entry Qualifications
2 GCE A Levels or equivalent
Students over the age of 25 may be given exceptional entry as mature students. All Students need to register as members of the Institute at the following address:

Chartered Institute of Management Accountants (CIMA)
26 Chapter Street
London SW1P 4NP
Tel:+44 (0)20 7663 5441
Duration of course
The course consists of 3 levels. There are two semesters for each level, though the Intermediate level will cover four semesters. Total duration will be two years.

NEW Award
Students who complete Foundation level will be awarded the CIMACertificate in Business Accounting.

Syllabus
CIMA FOUNDATION LEVEL
The Chartered Institute of Management Accountants - a full professional accountancy qualification
Chartered Institute of Management Accountants are involved at every level in organisations throughout the world. They are crucial members of the management team, making the decisions and supplying the information vital to the running of organisations in both the public and private sectors.

As the Chartered Institute of Management Accountants students will be qualified to working a variety of businesses from large-scale corporations to management consultancy practices. With over 58,00 students, CIMA is the leading financial qualification for businesses today.

1. Financial Accounting Fundamentals
Syllabus overview
This is an introduction to financial accounting and assumes no prior knowledge of the subject. It deals with the recording of accounting transactions and the preparation of accounting statements for single entities. The basic concepts of accounting are dealt with, and the student will be expected to understand the limitations of financial accounts in attempting to meet the needs of all users. An understanding of the different approaches to asset valuation and the resulting influence on profit measurement is required.

There is an introduction to the regulatory framework that determines published accounts requirements and a basic introduction to the role of accounting standards. An awareness of published accounts is required, but students will not be asked to prepare accounts in a published accounting format. No knowledge of any specific accounting standard is required. There will be an introduction to accounting systems and their control.

Although the emphasis is on the basic methods and techniques of the subject, students will be expected to develop a critical approach by asking why the methods and techniques are used and in what circumstances they are appropriate.

This syllabus addresses the fundamentals of the subject and recognises that some terms and definitions vary from one area of the world to another. As a result, students can use accepted alternative names to those that appear in this syllabus and be aware of alternative accounting formats. For example, International Accounting Standard 1 (IAS 1) uses income statement instead of profit and loss account and non-current assets instead of fixed assets. Others include inventories, receivables and payables. All of these are acceptable for use in answers in this paper, but it will be expected that they are applied consistently. Similarly, IAS 1 provides illustrations of accounting formats that are used widely in published accounts and are acceptable in this paper.

Syllabus content
1 (i) Conceptual and regulatory framework – 20%
Users of accounts and the objectives of financial statements; functions of financial and management accounts; purpose of accounting statements; stewardship; the accounting equation.
Fundamental accounting concepts, bases and policies; capital and revenue; cash and profit; income, expenditure, assets and liabilities.
Historical cost convention.
Methods of asset valuation and their implications for profit measurement and the balance sheet.
The regulatory influence of company law and accounting standards; items in formats for published accounts.
1 (ii) Accounting systems – 20%
The accounting system and accounting records.
Ledger accounts; double-entry bookkeeping.
Preparation of accounts for cash and bank; bank reconciliations; imprest system for petty cash.
Accounting for sales and purchases, including personal accounts and control accounts.
Financial accounting codes and their uses.
Nominal ledger accounting; journal entries.
Trial balance.
Accounting for indirect taxes (for example, VAT).
Accounting for payroll.
1(iii) Control of accounting systems – 15%
The purpose of external audit and the meaning of true and fair view.
Internal audit.
Financial controls; audit checks on financial controls; audit trails. Errors or fraud.
1(iv) Preparation of accounts – 45%
Adjustments to the trial balance; accruals and prepayments.
Bad debts and provision for doubtful debts.
Accounting treatment for depreciation (straight line, reducing balance and revaluation methods).
Fixed asset register.
Accounting for stocks (excluding long-term contract work in progress); methods of stock valuation (FIFO, LIFO and average cost).
Trading, profit and loss accounts and balance sheets from trial balance; accounting for the appropriations of profit.
Manufacturing accounts.
Income and expenditure accounts.
Production of accounting statements from incomplete data.
Ratios: return on capital employed; gross and net profit margins; asset turnover; debtors collection and creditors time to pay; current and quick ratios; stock turnover; gearing.
Cash-flow statements.

2. Management Accounting Fundamentals
Syllabus overview
Management Accounting Fundamentals is an introduction to management accounting for students with limited knowledge or no knowledge of this subject. While this paper focuses on the application of fundamental methods and techniques, students are also expected to have an understanding of when and when not to use them. Students must also appreciate the Syllabus content
Syllabus content
2(i) Cost determination – 30%
Classification of costs.
Materials: accounting and control procedures.
Labour: accounting and control procedures.
Factory incentive schemes for individuals and groups.
Overhead costs: allocation, apportionment, reappointment and absorption of overhead costs. NB: the repeated distribution method only will be used for reciprocal service department costs.
Absorption costing.
Marginal costing.
Materials: reorder quantity, reorder level, maximum stock, minimum stock, economic order quantity.
2(ii) Standard costing – 15%
Principles of standard costing.
Preparation of standard costs under absorption and marginal costing.
Variances: materials: total, price and usage; labour: total, rate and efficiency; variable overhead: total, expenditure and efficiency; fixed overhead: total, expenditure and volume (absorption costing); fixed overhead: expenditure (marginal costing); sales: total sales margin variance.

2(iii) Costing and accounting systems – 20%
Job, batch, contract and process costing.
Cost accounting statements for services and service industries.
Marginal and absorption costing profit and loss accounts.
Accounting entries for an integrated accounting system.
Interlocking accounting.
2(iv) Marginal costing and decision-making – 15%
Relevant cost concepts, including sunk costs, committed costs and opportunity costs.
Fixed, variable and semi-variable costs.
Contribution concept.
Break-even charts, profit/volume graphs, break-even point, profit target, margin of safety, contribution/sales ratio.
Limiting factor analysis.
2(v) Budgeting – 20%
Budget theory.
Budget preparation.
IT and budgeting.
Cost estimation and estimating techniques.
Reporting of actual against budget.
Fixed and flexible budgeting.

3a.Economics for Business
Syllabus overview
This syllabus is designed to enable students to acquire a knowledge and understanding of the fundamental economic concepts necessary for the work of the Chartered Management Accountant.

Syllabus content
3a(i) The economy and the growth of economic welfare – 10 %
The concept of economic welfare.
Economic growth: trends in economic growth; factors in economic growth.
Economic welfare and sustainable growth.
Issues in economic growth and growth policy.
3a(ii) The market system and the competitive process – 40 %
The business environment and the structure of economic activity.
Business firms: legal, economic and organisational features; entrepreneurship and profit.
Business functions: production and costs, finance and marketing.
The market process: supply and demand and their determinants.
The price mechanism: the demand and supply model and its applications.
Forms of market structure: competition and economic welfare; competition policy; regulation and deregulation; the public sector and privatisation.
Business and the environment; externalities and public policy.
3a(iii) The macroeconomic framework – 30%
National income: its measurement and determination; the circular flow of income and a simple aggregate demand and supply model; unemployment and the price level.

The monetary environment: inflation and the money supply; the banking and financial system; interest rates and monetary policy.
The fiscal environment: taxation and public spending; the budget and government borrowing; demand management and supply-side policy.
Macroeconomic stability; economic fluctuations and their causes; macroeconomic forecasting and stabilisation policy.
3a(iv) The open economy – 20%
Patterns of international trade and trade policy; regional trading blocs; the globalisation of production.
International factor movements; international capital markets; international investment flows; the movement of labour and technology; the nature and role of transnational companies.
The balance of payments; structure and determinants of the balance of payments; foreign exchange markets and exchange rate regimes; European Monetary Union.

3b.Business Law
Syllabus overview
The Business Law syllabus deals with those aspects of law which affect businesses and which contribute towards establishing the competence of the Chartered Management Accountant. By way of introduction, it covers fundamental elements of The English legal system, and uses professional negligence as the vehicle for demonstrating the system of judicial precedent. The syllabus then proceeds to look at the essentials of establishing and performing simple contracts and the remedies available in the event of a breach. As an introduction to company law, the syllabus then proceeds to look at the essential characteristics of the various forms of business organisation. Following this introduction, the emphasis is placed upon the company limited by shares and the rules relating to company formation, finance and management. Students may be required to present their explanations in the form of a letter or memorandum.

Syllabus content
3b(i) The English legal system – 10%
The sources of English law.
The system of judicial precedent.
The essential elements of the tort of negligence, including duty, breach and damage/loss/injury.
The liability of professionals in respect of negligent advice.
3b(ii) Establishing contractual obligations – 10%
The essential elements of a valid simple contract.
The legal status of the various types of statements which may be made by negotiating parties. Enforceable offers and acceptances, and the application of the rules to standard form contracts and modern forms of communication. The meaning and importance of consideration.
The principles for establishing that the parties intend their agreement to have contractual force.
How a contract is affected by misrepresentation.
3b(iii) Performing the contract – 10%
Incorporation of express and implied terms.
Conditions and warranties and the nature and effect of both types of terms. The main provisions of sale of goods and supply of services legislation. The manner in which the law controls the use of exclusion clauses and unfair terms in consumer and non-consumer transactions.
The level of performance sufficient to discharge contractual obligations.
Valid reasons for non-performance by way of agreement, breach by the other party and frustration.
3b(iv) Contractual breakdown – 10%
The remedies of specific performance, injunction, rescission, and requiring a contract party to pay the agreed price.
Causation and remoteness of damage.
The quantification of damages.
3b(v) The law of employment – 10%
The tests used to distinguish an employee from an independent contractor.
The express and implied terms of a contract of employment.
Unfair and wrongful dismissal.
An outline of the main rules relating to health and safety at work, sanctions on employers for non-compliance, and remedies for employees.
3b(vi) Company formation – 15%
The essential characteristics of sole traderships/practitionerships, partnerships and companies limited by shares.
Corporate personality and its legal consequences.
‘Lifting the corporate veil’ both at common law and by statute.
The distinction between public and private companies.
The procedure for registering a company, the advantages of purchasing a company ‘off the shelf’, and the purpose and content of the memorandum and articles of association.
Corporate capacity to contract.
3b(vii) Corporate administration – 10%
Board meetings: when used and the procedure at the meeting.
Annual and Extraordinary General Meetings: when used and the procedure at the meeting.
Company resolutions and the uses of each type of resolution.
3b(viii) Corporate finance – 10%
The rights attaching to the different types of shares issued by companies.
The procedure for issuing shares.
The purposes for which shares may be issued.
The maintenance of capital principle and the ability of a company to redeem, purchase and provide financial assistance for the purchase of its own shares, and the situations in which such powers are useful.
The rules for the reduction and increase of share capital.
The ability of a company to borrow money and the procedure to be followed.
Unsecured loans, and the nature and effect of fixed and floating charges.
3b(ix) Corporate Management – 15%
The appointment, retirement and removal of directors.
Directors’ powers and duties.
Fraudulent and wrongful trading, preferences and transactions at an undervalue.
The division of powers between the board and the shareholders.
The rights of majority and minority shareholders.
The qualifications, powers and duties of the company secretary.

3c.Business Mathematics
Syllabus overview
This is a Foundation Level study in mathematical and statistical concepts and techniques. The first two sections, Basic Mathematics and Summarising and Analysing Data, include techniques which are fundamental to the work of the Chartered Management Accountant. The third section covers basic probability and is needed because Chartered Management Accountants need to be aware of and be able to estimate the risk and uncertainty involved in the decisions they make. The fourth section is an introduction to financial mathematics, a topic that is important to the study of financial management. Finally, there is an introduction to the mathematical techniques needed for forecasting, necessary in the area of business planning.

Syllabus content
3c(i) Basic mathematics – 10%
Use of formulae.
Percentages and ratios.
Rounding of numbers.
Basic algebraic techniques and the solution of equations, including simultaneous and quadratic equations.
3c(ii) Summarising and analysing data – 25%
Data and information.
Primary and secondary data.
Probability sampling (simple random sampling, stratified, systematic, multi-stage, cluster) and non-profitability sampling (quota).
Tabulation of data.
Frequency distributions.
Graphs and diagrams: bar charts, time series graphs (not Z charts), scatter diagrams, histograms and ogives.
Summary measures for both grouped and ungrouped data.
Coefficient of variation.
Index numbers.
3c(iii) Probability – 20%
The relationship between probability, proportion and per cent.
The addition and multiplication rules.
Expected values.
Normal distribution.
3c(iv) Financial mathematics – 20%
Simple and compound interest.
Discounting to find the present value.
Annuities and perpetuities.
Loans and mortgages.
Sinking funds and savings funds.
Simple investment appraisal.
3c(v) Forecasting – 25%
Correlation.
Simple linear regression.
Time series analysis – graphical analysis.
Calculation of trend using graphs, moving averages and linear regression.
Seasonal variations – additive and multiplicative.
Forecasting.