Your career Your story Is the CMA for

Your career. Your story. Is the CMA for you? IMA NERC – February 11, 2017 Joseph A. Vincent, CMA Former Chair – Global IMA

Agenda • Careers in Management Accounting and Your Story • Institute of Management Accountants (IMA®) • IMA Student Membership and Benefits/Opportunities • Certified Management Accountant (CMA®) Credential • How to obtain the CMA • Q & A 2

Careers in Management Accounting

Who we are, what we do, where we work 4

The Management Accounting Profession Over 75% of accounting and finance professionals in the U. S. work inside organizations, building quality financial practices into the organization through decision support, planning and control over the organization’s value-creating operations. Source: US Bureau of Labor Statistics 5

Management Accountants – Leaders throughout the Finance Value Chain Internal Design Implement Manage External Report Management Accounting Audit Public Accounting Management accountants help create value, in addition to measurement, control and reporting 6

Profile of a Management Accountant Colin Kotchik, CMA Greatest Accomplishment: § Implemented a demand planning system, which is still in use Cool Fact: § Met Kobe Bryant, who also signed a pair of his shoes for Colin 7

Profile of a Management Accountant Monique Keshishian, CMA Senior Financial Analyst Warner Bros. Records Cool fact: § Works in the studio with top name artists, managing budgets and contractual fiscal matters, from signing with the record label to recording of the album to various marketing matters, including visual content (i. e. , music videos) Greatest accomplishment: § Creates financial reports for decision makers to determine which artists to maintain on the roster, to see which genres and mediums (digital or physical) of music have higher sales and, therefore, are in demand 8

IMA: Institute of Management Accountants

What is IMA? § The leading association dedicated to developing, certifying, connecting, and supporting the world’s best accountants and financial professionals in business § A network of more than 80, 000 members worldwide with 300+ chapters § Global office in US; regional offices in China, Europe and Middle East § Provides best-in-class certification for critical internal financial management responsibilities, including planning, budgeting, business reporting, decision analysis, and risk management 10

How IMA Can Support Your Career

Why Students Should Join IMA • • • Scholarships (over $30 K awarded each year) Student Chapters – a great leadership opportunity! Student Case & Manuscript Competitions Free Webinars – over XXX on Leadership topics Discounted IMA Membership and CMA Exam Fees Annual Student Leadership Conference (SLC) * CMA Scholarship Program * IMA Accounting Honor Society (IAHS) * Career Driver Tool * 12

Student Leadership Conference (SLC) 2017 SLC will be held in Houston, TX – Nov 9 -11! • Fantastic professional development and networking event for students! • Sessions focus on: – Early career issues & choices – Leadership – Accounting topics • Marriott Marquis Houston • Learn more at www. imastudentconference. org 13

CMA Scholarship Top students are recognized with a scholarship that covers all costs with the CMA exam. • Open to all students (undergrad & master) • Faculty must nominate students • Open during the academic year (Sept 1 – June 1) 14

IMA Accounting Honor Society (IAHS) Mission: Recognize and honor top performing accounting students and provide an alumni network for lifetime connections. Membership Criteria: • Attend an accredited college or university • Be a declared accounting/finance/IT major • Have taken a minimum of 3 accounting courses • Be in your junior year or later in an undergraduate program, or enrolled in a graduate or Ph. D program • Have an overall and accounting GPA of 3. 0 • Provide proof of eligibility via faculty confirmation or transcript 15

IMA Accounting Honor Society (IAHS) Membership Benefits: Application Process: (Available for a one-time fee of $50) 1. Faculty Process • Lifetime membership • Certificate of achievement • Graduation cord • Linked. In Community • Digital Badge • IAHS e-newsletter • Faculty submit nomination worksheet to IMA with all required information 2. Student Process • Student applies online at IAHS. org, and must submit official transcript to IMA 16

THE CMA - Discover the leading management accounting credential

The CMA: A Valued Credential The CMA credential is… § Prestigious – Self-selected credential earned through testing § Professional – IMA’s Salary Survey shows strong career growth and greater earning power § Rigorous – Testing, education, job experience, and continuing education requirements § Empowering – Promoting your credential allows you to become a leader in your profession § Competent – Attests proven on-the-job skills The CMA is a globally-recognized professional designation, not a license granted by a US state. 19

CMA Print Ads 20

CMA TV Ad To view, please click on play button or right click and select “hyperlink” > “open hyperlink” 21

Skills Gap

Skills Gap Challenges “The Skills Gap in Entry-level Management Accounting and Finance, ” APQC and IMA 23

Supply Vs. Demand “The Skills Gap in Entry-level Management Accounting and Finance, ” APQC and IMA 24

CMA exam content and structure

CMA Exam Structure Part 1: Financial Reporting, Planning, Performance and Control Part 2: Financial Decision Making - External financial reporting decisions - Financial statement analysis - Planning, budgeting, and forecasting - Corporate finance - Performance management - Decision analysis - Cost management - Risk management - Internal controls - Investment decisions • • - Professional ethics Each exam part is four hours in length 100 multiple choice questions, followed by two 30 -minute essay scenarios 26 © 2015 Institute of Management Accountants. Inside Talk Webinar Series. All rights reserved. #Inside. Talk

Is the CMA for you?

The CMA is for… 28

The Difference is in the Numbers 29

What employers are saying

Praise for the CMA § “At Microsoft, we look for a combination of solid accounting skills, the ability to think strategically, and strong business ethics. If someone is a CMA, we can be more comfortable that the person has mastered these aspects of the profession. ” Bob Laux, CMA, CPA Microsoft Corporation § “Financial analysis and decision support are central to management accounting practice, and the CMA focuses on these areas. ” David Burritt, CMA, CPA U. S. Steel 31

Praise for the CMA § “I didn’t really follow a traditional accounting path: I majored in management and economics in college… As a manager, I’ve encouraged many members of my staff to pursue their certification. Then I decided that it was time to lead by example and I earned one myself. ” Julie A. Lagacy, CMA Caterpillar Inc. § “Cummins is a strong advocate for the CMA program, and there’s a lot of encouragement within the company to get certified. I hadn’t been with the company very long when I realized that taking the CMA would offer many advantages. ” Kurt Riddle, CMA Cummins Inc. 32

Steps to becoming a CMA

Program Requirements § Foundational knowledge of economics, basic statistics, and financial accounting § Pass both CMA exam parts § Bachelors degree from an accredited college or university o o o § Any major, no course distribution requirements Most CMA candidates hold a degree in accounting or finance May be earned within 7 years of passing CMA exam parts Two years of professional work experience o May be fulfilled within 7 years of passing CMA exam parts § Active membership in IMA § Requirements to maintain CMA certification: o o o 30 hours of CPE annually CPE must include 2 hours of ethics training Maintain active IMA membership 34

How to Get Started 1) Hold Membership in IMA § Regular members (age 33+): $230/year + $15 one-time processing fee § Young Professional Members (< 32 yrs old): $155/year § Students members: $39/year *** SPECIAL OFFER: 50% off IMA Student Membership in combination with 40% off CMA entry fee. USE CODE: NERC 17 *** 2) Pay the CMA Exam Entrance Fee § Regular members: $250 one-time fee § Student members: $188 one-time fee 3) Register to sit for an exam part § Regular and Young Professional members: $415 per part § Student members: $311 per part (25% discount; automatic, no code required) 4) Contact IMA Customer Service with any questions § 1 -800 -638 -4427 or ima@imanet. org 35

Why Should Students Pursue the CMA? § Students can sit for the CMA exam before they graduate o Gain experience taking a challenging computer-based exam § Reduced IMA membership and CMA exam-related fees for students § CMA exam is very academic in nature – exam content is fresh in the minds of students § Students are more efficient studiers than professionals who have been out of school for many years If you are looking for an advanced certification to build your skills, résumé, and earning potential – the CMA is the right choice! 36

Closing Remarks……. .

Q&A

10 Paragon Drive, Suite 1 Montvale, New Jersey 07645 -1760 U. S. A. (800) 638 -4427 +1 (201) 573 -9000 www. imanet. org Updated 2. 9. 14

§ Brazilian Trivia

Brazil - Manaus

Brazil - Manaus

-- APPENDIX -Answers To Frequently Asked Questions

Appendix – Work Experience Requirement From IMA’s CMA Candidate Handbook: Candidates for the CMA Certification must complete two continuous years of professional experience in management accounting and/or financial management. This requirement may be completed prior to or within seven years of passing the examination. Academics can meet this requirement if at least 60% of their course load is in accounting and corporate financial management courses above the principles level. Professional experience is expected to be gained in full-time employment. However, continuous part-time positions of 20 hours per week meeting the definition of qualified experience will count toward this requirement at a rate of one year of experience for every two years of part-time employment. 44

Appendix – Work Experience Requirement (continued) From IMA’s CMA Candidate Handbook: Qualifying experience consists of positions requiring judgments regularly made employing the principles of management accounting and financial management. Such employment includes: • Preparation of financial statements • Financial planning & analysis • Monthly, quarterly, and year end close • Auditing (external or internal) • Budget preparation & reporting • Manage general ledger and balance sheets • Forecasting • Company investment decision making • Costing analysis • Risk evaluation 45

Appendix – Work Experience Requirement (continued) From IMA’s CMA Candidate Handbook: Employment requiring the occasional application of management accounting principles such as in computer operations, sales and marketing, manufacturing, engineering, personnel, and general management will not satisfy this requirement. Internships and trainee, clerical, or non-technical positions do not provide appropriate experience to fulfill this requirement. 46

Exam Testing § Exam administered at Prometric testing facilities worldwide § Three exam testing windows offered each year § o January and February o May and June o September and October Candidates schedule exams at their own pace o Part 1 and Part 2 can be taken in any order o Earn the CMA in less than a year or over a three-year period o You must register for an exam part within the first 12 months of entering the program 47

Part 1 – Financial Reporting, Planning, Performance, and Control External Financial Reporting Decisions Planning, Budgeting and Forecasting Performance Management Cost Management Internal Controls Governance, risk, and compliance, internal auditing, systems controls and security measures 48

Part 2 – Financial Decision Making Financial Statement Analysis Corporate Finance Decision Analysis Risk Management Investment Decisions Discounted cash flow analysis for capital investments Professional Ethics Ethical considerations for accounting and finance professionals in business

Cognitive Levels Tested All topics tested up to Level C § Level A: knowledge and comprehension o § Level B: application and analysis o § The basics or fundamentals intermediate level Level C: synthesis and evaluation o advanced or mastery level 50

Study Options § Flexible exam prep options offered by Wiley § Various learning options to fit your style o o o Self-study (print and online) Live, instructor-led courses CMAexcel Online Self-paced learning 10% student discount available on Wiley. CMA. com! 51