CMA Foundation Syllabus 2022: The Institute of Cost Accountants of India (CMA Institute) issued newly revised syllabus applicable for the coming examination of CMA Foundation i.e. June 2022 and Dec 2022 exams. If you register for CMA Foundation on or before 31st January, 2022 then you are eligible for appearing in June 2022 term of ICMAI Foundation examinations.
New syllabus of CMA Foundation course covers four subjects. Fundamentals of Economics and Management, Fundamentals of Accounting, Fundamentals of Laws & Ethics and Fundamentals of Business Mathematics & Statistics. Detail syllabus and weightage of marks for each subject has been provided in this page.
The Council of CMA Institute approved a new syllabus vide notification No. CMA (3)/2015 dated 26th June, 2015 at its 293rd Meeting held on 20-5-2015. This notification has been issued by exercising the powers conferred by clause (a) of sub-section (2) of Section 15 of the Cost and Works Accountants Act, 1959 in pursuance of sub-regulation (b) of Regulation 20B and Regulation 31 of the Cost and Works Accountants Regulations, 1959.
CMA Foundation Syllabus
Paper-1 Fundamentals of Economics and Management
Paper-1 Fundamentals of Economics and Management (FEM) syllabus structure:
| Fundamentals of Economics and Management | Weightage of Marks |
|---|---|
| Section-A: Fundamentals of Economics [50 Marks] | |
| 1. Basic concepts of Economics | 20 Marks |
| 2. Forms of Market | 20 Marks |
| 3. Money and Banking | 20 Marks |
| Section-B: Fundamentals of Management [50 Marks] | |
| 4. Management Process | 50 Marks |
Fundamentals of Economics
SECTION A: FUNDAMENTALS OF ECONOMICS [50 MARKS]
1- Basic Concepts of Economics – Micro & Macro Economics [20 Marks]
(a) The Fundamentals of Economics
(b) Utility, Wealth, Production
(c) Theory of Demand (meaning, determinants of demand, law of demand, elasticity of demand-price, income and cross elasticity) and Supply (meaning, determinants, law of supply and elasticity of supply)
(d) Equilibrium
(e) Theory of Production (meaning, factors, laws of production – law of variable proportion, laws of returns to scale)
(f) Cost of Production (concept of costs, short-run and long-run costs, average and marginal costs, total, fixed and variable costs)
2- Forms of Market [20 Marks]
(a) Pricing strategies in various forms of markets
3- Money and Banking [10 Marks]
(a) Definition of Money, Types, Features and Functions
(b) Definition, functions, utility, principles of Banking
(c) Commercial Banks, Central Bank
(d) Measures of credit control and Money Market
Fundamentals of Management
SECTION B – FUNDAMENTALS OF MANAGEMENT [50 MARKS]
4- Management Process [50 Marks]
(a) Introduction, planning, organizing, staffing, leading, control, communication, co-ordination
(b) Concept of Power, Authority, Delegation of Authority, Responsibility, Accountability
(c) Leadership & Motivation – Concept & Theories
(d) Decision-making – types of decisions, decision- making process.
Paper-2 Fundamentals of Accounting
Paper-2 Fundamentals of Accounting (FOA) syllabus structure:
| Fundamentals of Accounting | Weightage of Marks |
|---|---|
| Section-A: Fundamentals of Financial Accounting [80 Marks] | |
| 1. Accounting Fundamentals | 35 Marks |
| 2. Accounting for Special Transactions | 20 Marks |
| 3. Preparation of Final Accounts | 25 Marks |
| Section-B: Fundamentals of Cost Accounting [20 Marks] | |
| 4. Fundamentals of Cost Accounting | 20 Marks |
Fundamentals of Financial Accounting
SECTION A : FUNDAMENTALS OF FINANCIAL ACCOUNTING [80 MARKS]
1- Accounting Fundamentals
(a) Accounting Principles, Concepts and Conventions
(b) Capital and Revenue transactions- capital and revenue expenditures, capital and revenue receipts
(c) Double entry system, Books of prime entry, Subsidiary Books, Cash Book
(d) Journal , Ledger, Trial Balance
(e) Depreciation – Methods (Straight Line and Diminishing Balance methods only)
(f) Rectification of Errors
(g) Opening entries, Transfer entries, Adjustment entries, Closing entries
(h) Bank Reconciliation Statements
2- Accounting for Special Transactions
(a) Bills of Exchange (excluding accommodation bill, insolvency)
(b) Consignment (cost price, invoice price, commission & valuation of stock)
(c) Joint Venture
3- Preparation of Final Accounts
(a) Of a Profit making concern (for sole proprietorship concern only)
(i) Accounting treatment of bad debts, reserve for bad and doubtful debts, provision for discount on debtors and provision for discount on creditors.
(ii) Preparation of Trading Account, Profit & Loss Account and Balance Sheet.
(b) Of a Not-for- Profit making concern
(i) Preparation of Receipts and Payments Account
(ii) Preparation of Income and Expenditure Account
Fundamentals of Cost Accounting
Section B: FUNDAMENTALS OF COST ACCOUNTING [20 MARKS]
4- Fundamentals of Cost Accounting
(a) Meaning, Definition, Significance of Cost Accounting, its relationship with Financial Accounting & Management Accounting.
(b) Classification of Costs
(c) Format of Cost Sheet
Paper-3 Fundamentals of Laws and Ethics
Paper-3 Fundamentals of Laws and Ethics syllabus structure:
| Fundamentals of Laws and Ethics | Weightage of Marks |
|---|---|
| Section-A: Fundamentals of Commercial Laws [70 Marks] | |
| 1. Indian Contract Act, 1872 | 40 Marks |
| 2. Sale of Goods Act, 1930 | 20 Marks |
| 3. Negotiable Instruments Act,1881 | 10 Marks |
| Section-B: Fundamentals of Ethics [30 Marks] | |
| 4. Ethics and Business | 30 Marks |
Fundamentals of Commercial Laws
SECTION A: FUNDAMENTALS OF COMMERCIAL LAWS [70 MARKS]
1- Indian Contracts Act, 1872
(a) Essential elements of a contract, offer and acceptance
(b) Void and voidable agreements
(c) Consideration, legality of object and consideration
(d) Capacity of Parties, free consent
(e) Quasi contracts, Contingent contracts
(f) Performance of contracts
(g) Discharge of contracts
(h) Breach of Contract and Remedies for Breach of Contract
2- Sale of Goods Act, 1930
(a) Definition
(b) Transfer of ownership
(c) Conditions and Warranties
(d) Performance of the Contract of Sale
(e) Rights of Unpaid Vendor
(f) Auction Sales
3- Negotiable Instruments Act, 1881
(a) Negotiable Instruments–Characteristics of Negotiable Instruments
(b) Definitions of Promissory Note, Bill of Exchange and Cheque
(c) Differences between Promissory Note, Bill of Exchange and Cheque
(d) Crossing – Meaning, Definition and Types of Crossing
Fundamentals of Ethics
SECTION B: FUNDAMENTALS OF ETHICS [30 MARKS]
4- Ethics and Business
(a) Ethics – Meaning, Importance
(b) The “Seven Principles of Public Life” – Selflessness, Integrity, Objectivity, Accountability, Openness, Honesty and Leadership
(c) The relationship between Ethics and Law
(d) Ethics in Business
Paper-4 Fundamentals of Business Mathematics and Statistics
Paper-4 Fundamentals of Business Mathematics and Statistics syllabus structure:
| Fundamentals of Business Mathematics and Statistics | Weightage of Marks |
|---|---|
| Section-A: Fundamentals of Business Mathematics [40 Marks] | |
| 1. Arithmetic | 20 Marks |
| 2. Algebra | 20 Marks |
| Section-B: Fundamentals of Business Statistics [60 Marks] | |
| 3. Statistical representation of Data | 10 Marks |
| 4. Measures of Central Tendency and Dispersion | 30 Marks |
| 5. Correlation and Regression | 10 Marks |
| 6. Probability | 10 Marks |
Fundamentals of Business Mathematics
SECTION A: FUNDAMENTALS OF BUSINESS MATHEMATICS [40 MARKS]
1- Arithmetic
(a) Ratios, Variations and Proportions
(b) Simple and Compound Interest
(c) Arithmetic Progression and Geometric Progression
2- Algebra
(a) Set Theory
(b) Indices and Logarithms (basic concepts)
(c) Permutation and Combinations (basic concepts)
(d) Quadratic Equations (basic concepts)
Fundamentals of Business Statistics
SECTION B: FUNDAMENTALS OF BUSINESS STATISTICS [60 MARKS]
3- Statistical Representation of Data
(a) Diagrammatic representation of data
(b) Frequency distribution
(c) Graphical representation of Frequency Distribution – Histogram, Frequency Polygon Curve, Ogive, Pie-chart
4- Measures of Central Tendency and Dispersion
(a) Mean, Median, Mode, Mean Deviation
(b) Range, Quartiles and Quartile Deviation
(c) Standard Deviation
(d) Co-efficient of Variation
(e) Karl Pearson and Bowley’s Co-efficient of Skewness
5- Correlation and Regression
(a) Scatter diagram
(b) Karl Pearson’s Coefficient of Correlation
(c) Regression lines, Regression equations, Regression coefficients
6- Probability
(a) Independent and dependent events; Mutually exclusive events
(b) Total and Compound Probability; Baye’s theorem; Mathematical Expectation