The Institute of Management Accountants (IMA), formerly known as the National Association of Cost Accountants (NACA), is a professional organization of accountants.

History

IMA was founded in 1919 in

Buffalo, New York Buffalo is a Administrative divisions of New York (state), city in the U.S. state of New York (state), New York and county seat of Erie County, New York, Erie County. It lies in Western New York at the eastern end of Lake Erie, at the head of ...

as the National Association of Cost Accountants, later changing its name to IMA in 1957. It has its headquarters in

Montvale, New Jersey Montvale is a borough in northern Bergen County, in the U.S. state of New Jersey, bordering the state of New York. The borough is part of the New York City metropolitan area. As of the 2020 United States census, the borough's population was 8 ...

, United States, and regional offices in Americas, Asia/Pacific, Europe, and Middle East/India. In 1969, it formed the management accounting practices committee that was entrusted with the task of promoting management accounting as a core area of study in line with IMA views. It had 12 members from several accounting bodies like

FASB The Financial Accounting Standards Board (FASB) is a private standard-setting body whose primary purpose is to establish and improve Generally Accepted Accounting Principles (GAAP) within the United States in the public's interest. The Securit ...

and other prominent accounting regulatory groups. The representatives of the MAP were recognized for their expertise in accounting. The committee later merged with Foundation for applied research, forming the MAC/FAR committee.

Timeline

* 1919: Founding of the National Association of Cost Accountants (NACA) in Buffalo, N.Y., forerunner of the IMA * 1920: First chapter of NACA formed in Chicago / First NACA Annual Conference held in Atlantic City * 1925: NACA Bulletin introduced * 1935: Library established at NACA national office * 1943: First international chapter chartered * 1945: Research committee established * 1949: NACA Bulletin became monthly publication * 1957: NACA became National Association of Accountants (NAA) * 1959: Student Publication Services inaugurated * 1969: Management Accounting Practices Committee established * 1972: Certified Management Accountant (CMA®) program created / The first Statement on Management Accounting (SMA), Concepts for Contract Costing, issued * 1983: Standards of Ethical Conduct of Management Accountants, the first code of ethics for management accountants in the U.S., issued * 1989: Financial Executive of the Year Award (FEYA) program established * 1991: National Association of Accountants became the Institute of Management Accountants (IMA) * 1992: IMA became a founding member of the Committee of Sponsoring Organizations of the Treadway Commission (COSO), a private-sector organization dedicated to improving the quality of financial reporting * 1994: IMA Foundation for Applied Research (FAR) formed for the advancement of management accounting * 1996: IMA established the Certified Financial Manager (CFM®) program * 1999: IMA relaunched and renamed its flagship magazine, Strategic Finance, which also became available online / Management Accounting Quarterly debuted Fall 1999 * 2000: First IMA Student Conference held in Colorado Springs * 2006: First IMA Global Conference held in Dubai, UAE * 2009: LinkUp IMA, exclusive online professional community, launched * 2013: IMA became a member of IFAC *2015: IMA announced partnership with Wiley and Miles Education to offer CMA courses in India *2017: IMA established Certified in Strategy and Competitive Analysis (CSCA®) program. * 2018: IMA hits 100,000th member mark *2019: IMA released a book title 100 years and counting - a history of institute of management accountants *2020: IMA released two reports on revenue management and profitability analytics during COVID-19 *2023: IMA established Financial and Managerial Accounting Associate (FMAA™) program.

Accounting certification

Additionally IMA provides

certification Certification is part of testing, inspection and certification and the provision by an independent body of written assurance (a certificate) that the product, service or system in question meets specific requirements. It is the formal attestatio ...

, the

Certified Management Accountant Certified Management Accountant (CMA) is a professional certification credential in the management accounting and financial management fields. The certification signifies that the person possesses knowledge in the areas of financial planning, ana ...

(CMA), for internal financial management responsibilities, including

planning Planning is the process of thinking regarding the activities required to achieve a desired goal. Planning is based on foresight, the fundamental capacity for mental time travel. Some researchers regard the evolution of forethought - the cap ...

budgeting A budget is a calculation plan, usually but not always financial plan, financial, for a defined accounting period, period, often one year or a month. A budget may include anticipated sales volumes and revenues, resource quantities including tim ...

, business reporting, decision analysis and

risk management Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, Threat (sec ...

. The Institute of Certified Management Accountants (ICMA) is the certification division of IMA which awards the

(CMA) and Certified in Strategy and Competitive Analysis (CSCA) designations. CMA curriculum includes subjects like strategic management, reporting and control, technology and analytics, leadership, business acumen and operations, and professional values and ethics.

Certified management accountant (CMA)

The CMA exam has two parts. Part 1 covers Financial Reporting, Planning, Performance, and Control. It includes: External Financial Reporting Decisions, Planning, budgeting, forecasting, performance management, cost management and internal controls. Part 2 covers Financial Decision Making and includes financial statement analysis, corporate finance, decision analysis, risk management, investment decisions & Professional Ethics. From 2020, part 1 will include Technology and analytics component into its syllabus. This is to ensure CMA students are well versed with latest technological advancement which affects their future or current jobs. The worldwide pass rate for the exam is 35% for Part I and 49% for Part II in 2014.

Requirements

To be certified as a CMA, candidates must fulfill both an education requirement and an experience requirement in addition to passing the exam. # Bachelor's degree from an accredited college or university # Foundational knowledge of economics, basic statistics, and financial accounting # Two continuous years of professional experience employing the principles of management accounting and financial management including a specified list of fields. For certified CMAs, CPE credits are required to maintain active status. The CMA is a well-recognized certification among employers. CMA has better Career in Management Accounting than institute of Cost Accountants in SAARC nations. In its latest salary survey, IMA finds the median income for CMAs is about 28% higher in the U.S. than for their peers without the designation. Globally the survey finds CMAs earn 62% more in median salary and 67% more in median total compensation than non-CMAs. CMAs are well-represented within Fortune 500 companies as the certification is especially relevant to larger companies. CMAs hold titles such as Controller and CFO across industries.

Journal

IMA publishes the quarterly

academic journal An academic journal (or scholarly journal or scientific journal) is a periodical publication in which Scholarly method, scholarship relating to a particular academic discipline is published. They serve as permanent and transparent forums for the ...

''Management Accounting Quarterly'', focusing on corporate

accounting Accounting, also known as accountancy, is the process of recording and processing information about economic entity, economic entities, such as businesses and corporations. Accounting measures the results of an organization's economic activit ...

and financial management. IMA also publishes the magazine ''Strategic Finance'', an award winning publication that provides the latest information about practices and trends in finance and accounting.

References

External links

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''Management Accounting Quarterly''''Strategic Finance Magazine''
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