Part 2 is on financial analysis and decision making. Major topics include financial statement analysis, corporate finance, decision analysis, risk management, investment decisions and professional ethics. Financial statement analysis is the biggest section representing 25% of CMA Exam Part 2. Major topics include financial ratios, performance utilizing multiple ratios, market value vs book value, profitability analysis, effects of changing prices and inflation, off-balance sheet financing, and special issues such as foreign currency fluctuations, fair value accounting, and US GAAP vs IFRS. Corporate finance is another important topic, covering key concept of risk and return, capital instruments for financing, initial and secondary public offerings, dividend policy, cost of capital, working capital management, raising capital, mergers and acquisitions and international finance. For more information on the rest of the sections, please refer to our presentation. You are most welcome to drop us a note with questions. Good luck to your exam!

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CMA Exam Part 2
Overview, syllabus and pass rate

2. I’m the publisher of
IPassTheCMAExam.com
Author of “How to Pass the CPA Exam”
(Wiley, July 2013)
Today’s topic: The new syllabus of
CMA Exam Part 2

3. Major Topics in CMA Exam
(Part 2)

4. Financial statement
analysis (25%)
Corporate finance (20%)
Decision analysis (20%)
Risk management (10%)
Investment decisions
(15%)
Professional ethics (10%)

5. A. Financial
Statement Analysis

6. • Financial ratios
• Performance utilizing
multiple ratios
• Market value vs book value
• Profitability analysis
• Effects of changing prices and inflation
• Off-balance sheet financing
• Special analytical issues
How to
evaluate
using data
and ratios

7. Section A - Part 1 Section A - Part 2
Understand
financial statement
Focus on past
performance
Utilize ratios and
analysis for
evaluation
Focus on future
prospect
Memorize the ratios!

8. B. Corporate Finance

9. • Types of risk
• Capital instruments for financing
• IPOs and secondary public
offerings
• Dividend policy
• Cost of capital
• Working capital management; raising capital
• Mergers and acquisitions; international finance
Understand
financial
instruments

10. In this section, candidates should understand:
Short-term and long-term financial
management
Their benefits and limitations
Mixture of conceptual
and computational questions

11. C. Decision Analysis

12. • Relevant data concepts
• Cost volume profit analysis
• Marginal analysis
• Make vs buy decisions
• Income tax implication for
operational decision analysis
• Pricing methodologies
Provide
analysis for
decision
making

13. D. Risk Management

14. • Types of risk: business, hazard,
financial, operational, legal
• Risk mitigation
• Risk management
• Risk analysis
• Enterprise risk management
(ERM)
How to
identify and
manage
risks
Mostly conceptual

15. E. Investment Decisions

16. • Cash flow estimates
• Discounted cash flow concepts
• Net present value
• Internal rate of return
• Discounted payback
• Risk analysis and real options
Tools
for making
investment
decisions

17. F. Professional Ethics

18. • Ethical considerations for:
• Management accounting
professionals
• Organization as a whole
Ethics for
individuals &
organizations
Memorize the Standards!

19. CMA Exam
Part 2
Pass Rate
42%
Pass rate has been low…

20. But if you use the right tools
and strategies…
Committed candidates
have much higher chance

21. Plan, Study and Pass
the CMA exam on your first attempt with...
IPassTheCMAExam.com