In my previous post, I had cited that I would sketch in a worthy post next time….
(PS: those who have a time crunch, can just read the highlighted segment in the blog :))
Since then I had been seriously wondering on my next blog topic.. And then decided to blog on something that is very closer to my heart... ICWA (oops.. now it's ICMA, still haven't got a hang on it..:) )...
Yes, 3 years of my existence was dyed-in-the-wool to complete this course with flying colors (yup !!) . (Well, it was a part time course; ironically it ate up my time more than the full time courses did (B.Com, MBA)
Well, at the dawn, when I had made a choice to go for CWA (CMA), many of mortals who had some acquaintance with CA, ICWA (ICMA) and CS were like... Why on earth do u want to take up CWA (CMA)... go for CA, its more valuable... (More in terms of money and recognition per se…), but I had my own rationale (rather personal defense..: P) behind taking up CWA (CMA): here they are...
CWA (CMA) at that time didn’t force on any internship trainings (In CA, the candidate has to work under an auditor for 3 years before he/she could take up the final exams)..CWA (CMA) didn’t mandate anything like that when I was a student (though now, internships are mandated before u take up the finals. Lucky me :-P) I was then chasing my under graduation as well and was in no mood to take a break to do internships.
Statistical data revealed that the count of students who take up CA outwit the ones who take up CWA (CMA), and the past percentage in CA is higher when compared with CWA (CMA). So which means, CWA (CMA) is a tougher course and hence natives don’t risk, but take up the CA route (better pay, better prospects!!) This is the pass percentage comparison among the three finance courses: CA- 10-15%, CS- 8-10%, ICWA (ICMA) -2- 3% (not sure about the authenticity of these figures)
Looking from the syllabus standpoint, I found CWA (CMA) more alluring (I do adore the subjects in CWA!! Trust me ;-P) in terms of broadness of the course. CA dealt with subjects whose sole function on this earth was reporting and disclosures..!!!.. but CWA demanded some analytical and reasoning skills as well.
I wish to share the wisdom which I got in my very first CWA (CMA) class. It was the first session on ‘introduction to cost accounting’ in ‘foundation to ICWA course’ (For those who don’t know what is a foundation course.. foundation course is a course for 4 to 6 months duration and candidates who are not graduates need to take up this course before going for inter exams, those who take up CWA (CMA) post graduation are exempted from the foundation course) Since, I had started CWA in my first year of under graduation, I had to take up bonus 4 papers (bonus!!!.. b for burden!!)
The professor who took the class is a reputable AICMA gentleman (has worked with big firms and had superior wits). A bunch of 7 to 8 wannabe professional CMAs (of course including me!!) were seated in the classroom. Soon after the personal intros, the first bomb exploded in front of the class. (Why do teachers ask questions???? it is painless to pose questions, but thorny to respond to them!)
What is the difference between a CA and a CWA (CMA)? Which is a better one? (Perhaps he could read our thoughts, or read our pulse, as we were still in a catch-22 situation as to whether we committed the biggest blunder in life by opting for CWA (CMA) instead of CA. There was a pin drop silence in the room. We were motionless. Looking at the tranquility in the room, he thought it was wise, to not to fritter away the time by letting us drenched into our thoughts. He went on to bestow us a wonderful layman example to recognize the underlying concept behind these two courses. Here it is:
"Take a supermarket, which spans across different types of merchandise like grocery, cosmetics, apparels etc. A Chartered Accountant will be able to tell what the revenue from each of the departments is, what is the profit/loss at the company level, department level, and the tax payable on the income earned. A Cost Accountant will evaluate the rationale as to why a particular unit showed up loss, which product needs to moved out of the shelf, which product needs to be stocked up more, what is the price at which a product ought to be priced in order to make the required margins, how to manage the costs efficiently, so that though the sale price cannot be augmented, the cost can be condensed to keep up the margins. A cost accountant facilitates an organization to improve performance by analyzing the business."
And so, this is my understanding of a CA and CMA function in the business world. Each function has its own substance and a purpose; I fall short to see the rationale behind people arguing about the supremacy of the courses. Grow up!!
