Difference between CFA and CMA

CMA and CFA

CMA stands for Certified Management Accountant, whereas CFA stands for Chartered Financial Analyst. And as their name suggests, both courses are quite different from one another and opting for one can be a little tricky. Further in this blog, both of these courses will be compared under various elements which will help you make a decision.

Stages to Complete

While the CFA program has 3 levels that need to be taken in the order of 1, 2 and 3; the CMA program has 2 parts that can be taken in any order.

Duration

The CFA exam can take a minimum of 1 and a half years to complete. The CFA examination can be taken once each year (first Saturday of June) for level 2 and 3 and twice in the year for level 1 (first Saturday of June and/or first Saturday of December).

The CMA exam has numerous windows and one can appear for the examination in January or February, May or June, and September or October. The examinations can be completed within the period of 6 months.

Topics in CMA Program and (Part 1 and 2)

The topics covered in the CMA program with the % of weightage they hold are listed below:

· 1A: External Financial Reporting Decisions (15%)

· 1B: Planning, Budgeting, and Forecasting (30%)

· 1C: Performance Management (20%)

· 1D: Cost Management (20%)

· 1E: Internal Controls (15%)

· 2A: Financial Statement Analysis (25%)

· 2B: Corporate Finance (20%)

· 2C: Decision Analysis (20%)

· 2D: Risk Management (10%)

· 2E: Investment Decisions (15%)

· 2F: Professional Ethics (10%)

Topics in CFA Program

The topics covered in the CFA program are:

· Ethical and Professional Standards

· Equity Investments

· Alternative investments

· Quantitative Methods

· Portfolio Management and Wealth Planning

· Financial Reporting and Analysis

· Corporate Finance

· Derivatives

· Economics

· Fixed Income Investments.

Note: The weightage may change as per the level

Clearing Percentage

Let us be practical and accept that fact that both of these courses have a low clearing percentage and require a lot of hard-work and determination.

The CMA clearing-rates of Part 1 and Part 2 were 35% and 42% respectively.
The CFA clearing-rates for June 2017 were as follows: Level I: 43%, Level II: 47%, Level III: 54%.

If you are willing to take up either of the two courses, this information will surely come in handy for you and will help you make a rational decision. You can enroll yourself in the CFA or CMA courses in Dubai, UAE and give your career the right pump.

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