Definition
The Chartered Institute of Management Accountants (CIMA) is a professional association established in 1919 under the original name of the Institute of Cost and Works Accountants (ICWA). The organization provides education, training, and professional qualifications in management accountancy, primarily catering to members working in industry and commerce. In 2011, CIMA withdrew from the Consultative Committee of Accountancy Bodies.
Examples
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Example 1: A financial manager in a manufacturing company might earn a CIMA qualification to improve their expertise in cost management and financial planning.
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Example 2: A recent university graduate with a degree in business decides to enhance their career prospects by studying for CIMA exams, aiming to secure a role in management accounting.
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Example 3: An accountant working in a global corporation’s finance department uses their CIMA background to implement better budgeting processes and improve cost efficiencies.
Frequently Asked Questions (FAQs)
What is CIMA?
CIMA stands for the Chartered Institute of Management Accountants. It is a professional association offering qualifications in management accounting, aimed primarily at professionals in industry and commerce.
When was CIMA founded?
CIMA was founded in 1919 as the Institute of Cost and Works Accountants (ICWA).
What kind of qualifications does CIMA offer?
CIMA offers various qualifications related to management accounting, including the CIMA Certificate in Business Accounting and the CIMA Professional Qualification.
Who can benefit from a CIMA qualification?
Professionals in financial management, accounting, and business strategy roles within industries and commerce can benefit significantly from a CIMA qualification.
Is CIMA recognized globally?
Yes, CIMA is recognized globally, and its qualifications are respected worldwide, offering enhanced career opportunities in numerous countries.
Why did CIMA withdraw from the Consultative Committee of Accountancy Bodies (CCAB) in 2011?
CIMA withdrew from the CCAB to focus more on global partnerships and to better serve its international membership base.
Can CIMA members use any professional designatory letters?
Yes, full CIMA members can use the designatory letters ACMA (Associate Chartered Management Accountant) or FCMA (Fellow Chartered Management Accountant), and those who hold the CIMA Global Management Accounting Principles can use the CGMA designation.
What is the role of management accounting according to CIMA?
Management accounting, as advocated by CIMA, involves providing financial insights and strategic analysis to help businesses make informed decisions, optimize performance, and manage risks effectively.
Where can I find more information about CIMA?
Further information about CIMA can be found on their official website: CIMA Website.
Is there a membership fee to join CIMA?
Yes, there is a membership fee for joining CIMA, and the amount may vary based on the member’s location and membership status.
Related Terms
Management Accounting
Management Accounting involves preparing management reports and accounts that provide accurate and timely financial and statistical information for managers to make short-term and long-term decisions.
ACMA
ACMA (Associate Chartered Management Accountant) is a designation used by individuals who have completed the CIMA Professional Qualification and have met the practical experience requirements.
FCMA
FCMA (Fellow Chartered Management Accountant) is a senior designation awarded to members who have demonstrated substantial experience in management accounting and have held a CIMA membership for an extended period.
CGMA
CGMA (Chartered Global Management Accountant) is a global management accounting designation awarded to qualified professionals who meet specific criteria and are CIMA members.
Online References
Suggested Books for Further Studies
- “Management and Cost Accounting” by Colin Drury
- “CIMA F2 Advanced Financial Reporting: Study Text” by Kaplan Publishing
- “Financial Management” by Eugene F. Brigham and Michael C. Ehrhardt
- “CIMA Official Learning System Management Accounting Risk and Control Strategy” by Paul M. Collier
- “The Essentials of Finance and Accounting for Nonfinancial Managers” by Edward Fields
Accounting Basics: “Chartered Institute of Management Accountants (CIMA)” Fundamentals Quiz
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