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CMA Final New Syllabus – Dec 2018

ICAI (Cost) approved CMA Final New Syllabus implemented for CMA Final Course students. CMA Final Dec 2018 exams shall be held under New Syllabus.

The Council of the Institute of Cost Accountants of India [ICAI (Cost)] at its 293rd Meeting held on 20/5/2015 has approved the “Syllabus 2016” for CMA Final Course students and the same has been notified vide notification No. CMA (3)/2015 dated 26th June, 2015. CMA Final New Syllabus for Dec 2018.

This notification has been issued in exercise of powers conferred by clause (a) of sub-section (2) of Section 15 of the Cost and Works Accountants Act, 1959 and in pursuance of sub-regulation (b) of Regulation 20B and Regulation 31 of the Cost and Works Accountants Regulations, 1959.

Accordingly, if you will take admission to the Final Course of the Institute of Cost Accountants of India [ICAI (Cost)] after January, 2016, you shall pursue course under new “Syllabus 2016”. However, CMA Institute has clarified vide its Circular No. G/128/4/2015-16 dated December 24, 2015 that the “Syllabus-2016” will be implemented with effect from 01/08/2016 (1st August 2016) and the first examination under syllabus-2016 shall take place in June, 2017.

Further, the CMA Institute has also clarified vide Notification No. CMA(1)/2016 dated 4th Oct, 2016 that the last Examination under old “Syllabus 2012” shall be conducted for further two terms i.e. in June 2017 & December 2017 term of examinations. Whereas, the First CMA Final Examination under new “Syllabus 2016” shall be conducted in June, 2017.

Exams under New Syllabus-2016 for CMA Final Course Students

You may understand the details of examinations which shall be conducted simultaneously under both Syllabi by the following table:

CMA Final Course Examination
Term of Examination
Examinations to be held under Syllabus
December 2016
Syllabus 2012
No Exam under Syllabus 2016
June 2017
Syllabus 2012
Syllabus 2016 (First Exam)
December 2017
Syllabus 2012 (Last Exam)
Syllabus 2016
June 2018 and onwards
No Exam under Syllabus 2012
Syllabus 2016

Subjects under New Syllabus-2016 for CMA Final Course Students

Note that CMA Institute has also clarified vide Circular No. G/128/5/2015-16 dated December 24, 2015 that the first examination under Syllabus-2016 shall be conducted in June 2017 and following subjects shall be under CMA Final Course Syllabus-2016:

Syllabus-2016 for Group-III of CMA Final Course

Paper-13 (P13): Corporate Laws & Compliance
Paper-14 (P14): Strategic Financial Management
Paper-15 (P15): Strategic Cost Management – Decision Making
Paper-16 (P16): Direct Tax Laws and International Taxation

Syllabus-2016 for Group-IV of CMA Final Course

Paper-17 (P17): Corporate Financial Reporting
Paper-18 (P18): Indirect Tax Laws & Practice
Paper-19 (P19): Cost & Management Audit
Paper-20 (P20): Strategic Performance Management and Business Valuation


Paper 13: Corporate Laws & Compliance

There are three sections in the Paer-13 of CMA Final Course viz. A) Companies Act, B) Other Corporate Laws, and C) Corporate Governance.

Section A (Companies Act 2013) [50 Marks]:

Section A of Paper-13 of CMA Final contains topics related to the Companies Act, 2013 which has 50% weightage.

1. The Companies Act, 2013

Rules, regulations prescribed under the Companies Act 2013 with special reference to:

a) Company Formation and Conversion

(i) Incorporation of private companies, public companies, company limited by guarantee and unlimited companies and their conversions/reconversion/re-registration.
(ii) Nidhi Companies, Mutual Benefit Funds and Producer Companies – concept, formation, membership, functioning, Dissolution.
(iii) Formation of Not-for-Profit making companies.
(iv) Procedure relating to Foreign Companies Carrying on Business in India.
(v) Conversion of LLPs into Private Limited Companies and vice versa

b) Investment and loans

(i) Procedure for inter-corporate loans, investments, giving off guarantee and security.
(ii) Acceptance of deposits, renewal, repayment, default and remedies.

c) Dividends

(i) Profits and ascertainment of divisible profits.
(ii) Declaration and payment of dividend.
(iii) Unpaid and unclaimed dividend – treatment and transfer to Investor Education and Protection Fund

d) Accounts and Audit

(i) Maintenance of Books of Accounts
(ii) Statutory Auditor, Special Auditor and Cost Auditor – Appointment, resignation, removal, qualification, disqualification, rights, duties and liabilities
(iii) Companies Auditor Report Order (CARO) Rules.

e) Board of Directors & Managerial Personnel

i) Directors and Managerial Personnel- appointment, reappointment, resignation, removal.
ii) Payment of remuneration to Directors and Managerial personnel and disclosure
iii) Powers of Board of Directors and restrictions on the powers of Directors
iv) Obtaining DIN
v) Compensation for loss of office
vi) Waiver of recovery of remuneration
vii) Making loans to Directors, Disclosure of interest of a Director, Holding of Office or Place of Profit by a Director/relative
viii) Interested Directors

f) Board Meetings and Procedures

(i) Board Meetings, Minutes and Registers
(ii) Powers of the Board
(iii) Corporate Governance & Audit Committee
(iv) Duties and Liabilities of Directors
(v) Powers related to – political contributions.

g) Inspection, Inquiry and investigation
h) Compromises, arrangements and amalgamations
i) Prevention of oppression and mismanagement

(i) Majority Rule but Minority Protection
(ii) Prevention of Oppression and Mismanagement

j) Revival and rehabilitation of sick industrial companies
k) Corporate winding up and dissolution – Kinds of winding up – powers of the Court and Official Liquidator
l) Companies Incorporated outside India
m) Offences and Penalties
n) National Company Law Tribunal and Special Courts

Section B (Other Corporate Laws) [30 Marks]:

Section B of Paper-13 of CMA Final Course contains five topics and the detail contents of which have been sited below.

2. SEBI Laws and Regulations

(a) The Securities and Exchange Board of India Act,1992 – Rules, Regulations and Guidelines issued there under Clause 49 and SEBI (Issue of Capital and Disclosure Regulations), 2009
(b) The Securities Contracts (Regulation) Act,1956

3. The Competition Act, 2002

(a) Competition – Meaning, objectives, extent and applicability
(b) Competition Commission of India
(c) Areas affecting competition

4. Foreign Exchange Management Act, 1999

Only basic understanding of Exports, Imports and Foreign Funds under Deferred Payment, ECB route, loans and export remittance and import remittances.

5. Laws related to Banking Sector

Only basic understanding of the following topics related to banking sectors.

(a) The Banking Regulation Act,1949
(b) The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002
(c) The Prevention of Money Laundering Act, 2002 – Role of Cost Accountants in Anti- Money Laundering (AML) Audits to check tax evasion and transfer of funds.

6. Laws related to Insurance Sector

Only basic understanding of the following topics related to Insurance sector.

(a) The Insurance Act,1938;
(b) The Insurance Regulatory and Development Authority Act,1999

Section C (Corporate Governance) [20 Marks]:

In this section covers topics related to Corporate governance and other social responsibility of company. Section C has 20% weightage of Paper-13 of CMA Final Course. The detail contents have been depicted below.

7. Corporate Governance

(a) Overview-Issues and Concepts
(b) Corporate Governance Practices/Codes in India,
(c) Corporate governance in family business
(d) Corporate governance in state-owned business – the MOU system

8. Social, Environmental and Economic Responsibilities of Business

(a) National Voluntary Guidelines on Social, Environmental and Economic Responsibilities of Business
(b) Corporate Social Responsibility – Nature of activities; Evaluation of CSR projects
(c) E-governance

Paper 14: Strategic Financial Management

There are four sections in the Paer-14 of CMA Final Course viz. A) Investment Decisions, B) Financial Markets and Institutions, C) Security Analysis and Portfolio Management, and D) Financial Risk Management.

Section A (Investment Decisions) [25 Marks]:

Section A of Paper-14 of CMA Final Course contains three topics and it carries 25% weightage.

1. Investment Decisions, Project Planning and Control

(i) Estimation of project cash flow
(ii) Relevant cost analysis for projects
(iii) Project appraisal Methods – DCF and Non-DCF Techniques
(iv) Capital Rationing
(v) Social Cost Benefit analysis

2. Evaluation of Risky Proposals for Investment decisions

(i) Investment decisions under uncertainties
(ii) Effect of Inflation on Capital Budgeting Decisions
(iii) Sensitivity Analysis, Certainty Equivalent Approach, Decision Tree Analysis, Standard Deviation in Capital Budgeting, Risk Adjusted Discount Rate, Options in Capital Budgeting

3. Leasing Decisions

(i) Lease Financing – Evaluation of Lease vs. Buy options
(ii) Break-Even Lease rental determination
(iii) Cross Boarder leasing, Sale and Lease back

Section B (Financial Markets and Institutions) [20 Marks]:

Section B of Paper-14 of CMA Final Course covers four topics and the content has been explained in detail hereunder.

4. Institutions in Financial Markets

(i) Reserve Bank of India, Commercial Banks, NBFCs
(ii) Insurance Companies, Pensions Funds.

5. Instruments in Financial Market

(i) Money Market Instruments – Call money, Treasury Bills, Commercial Bills, Commercial Paper; Certificate of Deposits, Repo, Reverse Repo and Promissory Notes, Government Securities, Bonds, valuation of Bonds, Price Yield relationship.
(ii) Hedge Funds
(iii) Mutual Funds – Computation of NAV and Evaluation of Mutual fund’s Performance

6. Capital Markets

(i) Primary and secondary markets and its instruments
(ii) Optionally convertible debentures, Deep discount bonds
(iii) Rolling settlement, Clearing house operations
(iv) Dematerialization, Re-materialization and Depository system
(v) Initial Public Offering (IPO) / Follow on Public Offer (FPO) ; Book Building
(vi) Insider trading
(vii) Credit rating – Credit rating agencies in India

7. Commodity Exchange

(i) Regulatory Structure, Design of markets
(ii) Issues in Agricultural, Non-Agricultural Markets, Product design, Spot price and present practices of commodities exchanges
(iii) Intermediaries in the commodity exchanges & Clearing house operations, risk management related issues
(iv) Commodity Options on futures and its mechanism

Section C (Security Analysis & Portfolio Management) [25 Marks]:

Section C of CMA Final Course contain topic related to security analysis and portfolio management and covers 25% weightage. The detail contents have been described below.

8. Security Analysis & Portfolio Management including Equity Research

(i) Security analysis- Fundamental analysis- Economic analysis, Industry analysis, Company analysis, Technical analysis, Momentum analysis – arguments and criticisms
(ii) Market indicators, Support and resistance level, Patterns in stock price
(iii) Statistic models – Moving Averages, Bollinger bands
(iv) Theories on stock market movements – Dow Jones Theory
(v) Portfolio Management – meaning, objectives and basic principles
(vi) Portfolio Management theories – Efficient Market Hypothesis, Markowitz Model, Random Walk theory, CAPM, APT, Sharpe Index.
(vii) Portfolio Management – Construction of a Portfolio, Computing the Portfolio Total risk, Classification of risk into systematic and unsystematic, Minimization of Portfolio risk, Monitoring the Risk and Return of a portfolio
(viii) Portfolio Analysis – Security and Capital Market Line, Beta, Levered and Unlevered Beta

Section D (Financial Risk Management) [30 Marks]:

Section D covers three topics and it carries 30% weightage of Paper-14 of CMA Final Course. The contents of these topics have been explained below in detail.

9. Financial Risks

(i) Credit Risk, Liquidity Risk, Asset based risk, Operational Risk
(ii) Foreign investment risk, Market Risk

10. Financial Derivatives – Instruments for Risk Management

(i) Forward & Futures – Meaning and Difference between Forwards and Future, Stock futures, Hedging through futures and benefits of Future market, Components of Future Price, Index based Futures, Margins in the derivatives market,
(ii) Options – Meaning, types of Options (Call & Put), Put-Call Parity theory, Determination of Option Premium, Strategies in Options market – spread, bull spread, bear spread, butterfly spread, combination, straddle, Strangle, Strips and Straps, Valuation of Options using- Option Equivalent, Stock Equivalent, Binomial tree approach, Risk neutral and Black- Scholes Model
(iii) Swaps and Swaptions – Meaning, types, features, benefits of Swaps, Interest rate swaps,
(iv) Interest rate derivatives – Meaning, Interest rate caps, interest rate collars, forward rate agreements

11. Financial Risk Management in International Operations

(i) Sources of Foreign currency, debt route, depository receipts, American Depository Receipts (ADRs) – sponsored, unsponsored, Global Depository Receipts (GDRs), Warrants, Foreign Currency Convertible Bonds (FCCBs), Euro Issues, Euro Commercial Paper, Euro Convertible Bonds, Note Issuance Facility, Participating Notes, Foreign Direct Investment
(ii) Foreign Exchange Market – Exchange Rate determination – Exchange Rate Forecasting- Purchasing Power Parity-Interest Rate Parity
(iii) Exchange Rate Risk management – Forex Hedging tools, exposure netting, currency forward, cross currency roll over, Currency futures, options, money market hedge, asset liability management
(iv) Foreign Investment Analysis: International Portfolio Investment – International Capital Budgeting.

Paper 15: Strategic Cost Management – Decision Making

There are three sections in Paper-15 of CMA Final Course viz. A) Cost Management, B) Strategic Cost Management Tools and Techniques, and C) Strategic Cost Management – Application of Statistical Techniques in Business Decisions.

Section A (Cost Management) [20 Marks]:

Section A contains only one topic related to cost management which covers 20% weightage of Paper-15 of CMA Final Course.

1. Cost Management

(a) Developments in Cost Management:

(i) Life Cycle costing
(ii) Target costing
(iii) Kaizen Costing
(iv) Value Analysis and Value Engineering
(v) Throughput Costing
(vi) Business Process Re-engineering
(vii) Back-flush Accounting
(viii) Lean Accounting
(ix) Socio Economic Costing

(b)Cost Control and Cost Reduction – Basics, Process, Methods and Techniques of Cost Reduction programme.

Section B (Strategic Cost Management Tools and Techniques) [50 Marks]:

Section B contain four topics and covers 50% weightage of Paper-15 of CMA Final Course. The detail contents have been explained hereunder.

2. Decision Making Techniques

(a) Marginal Costing- Differential costing-CVP Analysis – Profit Volume Graphs – Contribution Approach
(b) Decisions involving alternative choices – Optimum utilization of resources – Make or Buy – Evaluation of Orders – Multiple scarce resource problems- Product sales pricing etc.
(c) Pricing Decisions and Strategies – New Product Pricing, Use of Costs in Pricing, Sensitivity Analysis in Pricing Decisions; Monopoly Pricing vs. Competitive Pricing; Bottom Line Pricing
(d) Costing of Service Sector – methods, pricing, performance measurement
(e) Transfer Pricing – Objectives, Methods (Cost Based, Market Price Based, Negotiated Pricing), Advantages and Disadvantages, Criteria for setting Transfer Prices, Transfer Price in different situations, Situations causing Conflicts and resolving the Conflicts;
(f) Relevant Cost Analysis: Relevant Cost, Irrelevant Costs – Sunk or Historical Cost, Committed Cost, Absorbed Cost, Situations where Fixed Costs become relevant for decision – making and its related implications
(g) Profitability Analysis – Product wise / Segment Wise / Customer wise

3. Standard Costing in Profit Planning

(a) Variance Analysis – Investigation of Variances, Planning and Operating Variances, Controllable / Non-controllable Variances, Relevant Cost Approach to Variance Analysis; Variance analysis under marginal costing and absorption costing; Activity Ratios; Application of budgetary control and Standard Costing in Profit planning, Standard Costing Vs Budgetary Control, Reconciliation of Actual Profit with Standard Profit and /or Budgeted Profit.
(b) Uniform Costing and Inter-firm comparison

4. Activity Based Cost Management – JIT and ERP

(a) Activity Based Cost Management – Concept, purpose, benefits, stages, relevance in decision-making and its application in Budgeting, Responsibility accounting, Traditional Vs. ABC System – comparative analysis
(b) JIT – introduction, Benefits, Use of JIT in measuring the Performance
(c) ERP and its applications in strategic cost management
(d) Bench Marking

5. Cost of Quality and Total Quality Management

(a) TQM – Basics, Stages, Principles, Control, Corrective actions
(b) PRAISE-Steps, Problems, implementation
(c) PARETO Analysis
(d) Quality Costs

Section C (Strategic Cost Management) [30 Marks]:

This covers 30% weightage of Paper-15 of CMA Final Course and contain topics related to application of Statistical Techniques in Business Decisions.

6. Application of Operation Research and Statistical Tools in Strategic Decision Making

(a) Learning Curve,
(b) Linear Programming (Formulation only)
(c) Assignment,
(d) Transportation
(e) Simulation
(f) Network Analysis – CPM / PERT

Paper 16: Direct Tax Laws and International Taxation

There are three sections in Paper-16 of CMA Final Course viz. A) Advanced Direct Tax Laws, B) International Taxation, and C) Tax Practice and Procedures.

Section A (Advanced Direct Tax Laws):

Section A of Paper-16 of CMA Final Course contain 10 topics and carries 50% weightage.

1. Return of Income & Assessment Procedure

(a) Return of Income
(b) Annual Information Return [Section 285BA]
(c) Assessment Procedure

2. Assessment of Various Entities & Tax Planning

(a) Assessment of Individuals
(b) Assessment of Hindu Undivided Family
(c) Assessment of Firms
(d) Assessment of Limited Liability Partnership (LLP)
(e) Assessment of Association of Persons / Body of Individuals
(f) Assessment of Companies
(g) Assessment of Co-operative Societies
(h) Assessment of Trusts
(i) Assessment of Mutual Association
(j) Alternate Minimum Tax and Minimum Alternate Tax
(k) Different Aspects of Direct Tax Planning

3. Clubbing of Income

Income of other person’s assessed/ clubbed in the hands of the Assessee

4. Set-Off and Carry forward and Set-off of losses

(a) Introduction
(b) Set off of loss in the Same Year
(c) Carry forward and set off of loss in Subsequent Years

5. Deduction in Computing Total Income

(a) Introduction
(b) Deductions from Gross Total Income

6. Business Restructuring

(a) Restructuring business
(b) Amalgamation
(c) Demerger, Reverse Merger
(d) Conversion of sole proprietary business to company
(e) Conversion of Firm into Company
(f) Conversion of Private Company/ Unlisted Public Company into Limited Liability Partnership (LLP)

7. Administrative procedures under Direct Taxation

(a) CBDT & Other Authorities
(b) Survey
(c) Search and Seizure
(d) Demand, Recovery, Assessment, appeal, revision, and settlement.
(e) E-commerce Transaction and liability in special cases
(f) Penalties, Fines and prosecution
(g) Income Computation and Disclosure Standards

8. Grievances Redressal Procedure

(a) Grievances Redressal Procedure
(b) Rectification
(c) Appeal and Appellate Hierarchy
(d) Revision

9. Settlement of Cases

(a) Liability under special cases
(b) Settlement of Cases [Section 245A to 245L]
(c) Advance Ruling

10. Black Money Act, 2015

(a) Introduction to Black Money Act
(b) Highlights of Black Money Act

Section B (International Taxation) [30 Marks]:

Section B of Paper-16 of CMA Final Course covers topics related to International Taxation and carries 30% weightage.

11. Double Taxation Avoidance Agreements (DTAA)

(a) Double Taxation Relief – Agreement with Foreign Countries or Specified Territories [Section 90]
(b) Adoption by Central Government of agreement between Specified Associations for Double Taxation Relief [Section 90A]
(c) Countries with which no Agreement Exists [Section 91]
(d) Tax Residency Certificate [TRC] [Section 90 and Section 90A]

12. Transfer Pricing Issues

In this topic also includes international and domestic transactions.

(a) International Taxation & Transfer Pricing issues
(b) Application of Generally Accepted Cost Accounting Principles and Techniques for determination of Arm’s Length Price
(c) Advance Pricing Agreement (APA) – Concept and Application

Section C (Tax Practice and Procedures) [20 Marks]:

Section C of Paper-16 of CMA Final Course contains case study related to tax practice and procedure.

13. Case Study Analysis

Note that the contents of Paer-16 of CMA Final Course shall be reviewed every 6 months and shall be incorporated accordingly by ICAI.



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Kishan PrajapatGirisanjiv mishraANUP KR CHAKRABORTY Recent comment authors
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Hi, thanks for the details. Can you provide Chapter-wise weightage for the subjects

Kishan Prajapat

you can get the same from

sanjiv mishra

sir kya mai av 2012 sllabuss change karke 2016 sllabus me ja sakta hu 2017 june me exam dene ke liye agar change karana hoga to kaise karayenge pls reply


I completed my icwa intermediate exam in june, 1996.Since then i appeared only once in dec 1999.My oral coaching of final both group were completed. Now am i eligible for ICWA FINAL EXAM ?If so, then what are the steps to be followed now?