!!!!!help!!!!!!!!!!!
- Thread starter ruvi_143
- Start date
roshcrazy
Roshni Bhatia
CFA n ACA r different qualifications with no comparision.
ACA is specialist in audit&tax. while CFA is specialist in investment management (including portfolio & funds management).
ACA is qualification in Accounting field, while CFA is supreme most qualification in Finance. so much so, tht i know many good universities abroad who ve designed their syllabus of degrees in Finance in accordance to CFA!!!
but the bottom line is tht it is the talent inside u tht matters, not being the CFA or ACA. if u dont enjoy financial markets and economic trends, CFA is useless for u.
if u insist on comparing ACA n CFA, CFA is way too better; but no doubt, extremely difficult. website of AIMR (owners of CFA charter) itself admit tht "... even the most experienced investment bankers find CFA exams extremely difficult..." and on one place, "...CFA charter is awarded to extremely few ppl arround the world...".
most ppl prefer to sit for CFA exams after they have arround 1-2 yrs experience in investment mgmt., and they ve completed their masters/bachelors degree in Finance (not in accountancy!). CFA website says: "... our syllabus is of master's degree level..."
importance of CFA is also highlighted whn u find tht many (if not most) CPAs (ACA of USA) turn to CFA!!!
ACA is specialist in audit&tax. while CFA is specialist in investment management (including portfolio & funds management).
ACA is qualification in Accounting field, while CFA is supreme most qualification in Finance. so much so, tht i know many good universities abroad who ve designed their syllabus of degrees in Finance in accordance to CFA!!!
but the bottom line is tht it is the talent inside u tht matters, not being the CFA or ACA. if u dont enjoy financial markets and economic trends, CFA is useless for u.
if u insist on comparing ACA n CFA, CFA is way too better; but no doubt, extremely difficult. website of AIMR (owners of CFA charter) itself admit tht "... even the most experienced investment bankers find CFA exams extremely difficult..." and on one place, "...CFA charter is awarded to extremely few ppl arround the world...".
most ppl prefer to sit for CFA exams after they have arround 1-2 yrs experience in investment mgmt., and they ve completed their masters/bachelors degree in Finance (not in accountancy!). CFA website says: "... our syllabus is of master's degree level..."
importance of CFA is also highlighted whn u find tht many (if not most) CPAs (ACA of USA) turn to CFA!!!
roshcrazy
Roshni Bhatia
CA is another thing and CFA is other one
CA are trained for basically audit
&
CFA are not trained they are mainly passed and there nature of profession is different they are Financial analysts
that is only speciality
as after being a doctor a person may be Heart specialist or any other
Such is the case of CFA
No matter CFA is paid more than a CA but you cannot compare these two
a CFA tells u how to generate return from resources.
a CA (mainly) checks whether a CFA has complied with the regulations and reported the truth.
There are no exemptions currently available for anyone wishing to pursue CFA qualification. A number of chartered accountants pursue CFA post qualification mainly if they want to leave audititng field and perhaps join investment or investment related profession. Coming with an accountancy background may help you in some CFA topics, e.g. Financial Statement Analysis.
CA are trained for basically audit
&
CFA are not trained they are mainly passed and there nature of profession is different they are Financial analysts
that is only speciality
as after being a doctor a person may be Heart specialist or any other
Such is the case of CFA
No matter CFA is paid more than a CA but you cannot compare these two
a CFA tells u how to generate return from resources.
a CA (mainly) checks whether a CFA has complied with the regulations and reported the truth.
There are no exemptions currently available for anyone wishing to pursue CFA qualification. A number of chartered accountants pursue CFA post qualification mainly if they want to leave audititng field and perhaps join investment or investment related profession. Coming with an accountancy background may help you in some CFA topics, e.g. Financial Statement Analysis.
roshcrazy
Roshni Bhatia
Merits of the MBA vs. CFA.
The Master of Business Administration (MBA) or the Chartered Financial Analyst (CFA) designation?
Which credential ultimately adds more value and helps its holder get on the fastest track to meeting his/her professional goals? There is no question that an individual with either should expect a higher salary. In fact, it would be ideal to carry both. However, time and money limit one?s ability to pursue both the CFA and MBA, so if you had to choose only one designation, which would it be?
In essence, the CFA is a far more specialized program, aimed primarily at those either interested in or already pursuing a career in the financial industry. On the other hand, the goal of the MBA is to expose its candidates to a wide variety of business streams ? marketing, finance, accounting, or organizational behaviour ? and give them the options to specialize or remain a generalist.
The CFA route is designed for individuals interested in a finance career. The candidate must have four years of experience related to the aforementioned tasks, or be in the process of accruing it. This designation has another caveat emptor however: Summer internships do not count.
MBA programs do not segregate candidates based on their past work experience and future work plans. However, there are a number of hurdles to jump over before entering a distinguished MBA program. Depending on which school you are interested in, you may be required to verify a certain amount of job experience (usually two years) before entering the program.
Due to fierce competition over entry into these programs, a strong supplementary application coupled with proven work experience and high GMAT scores are necessary for admission.
Now for the meat of the discussion: the costs versus pay-offs. Depending on the MBA school of choice, one will likely spend anywhere between $30,000-$100, 000 over the course of one to two years. Starting salaries also vary from school to school: Top US Ivy League schools have an average post-MBA salary of US $110,000 compared to the average pre-MBA salary of US $70,000. That is a 57% increase in salary upon graduation.
On a more domestic note, MBAs attending top Canadian business schools such as the Western?s Ivey, Queen?s, Rotman, and Schulich can expect a salary increase of 56% upon the completion of their degree; the average pre-MBA salary of US $45,000 increases to approximately US $70,000 upon program completion.
The CFA works a little differently. It consists of three tests that can be written once a year, and provided you pass all three of them on the first try, you can obtain your designation in three years. However, that is a big ?if?. According to studies, one needs a minimum of 250 hours to study for all three tests. However, the pay-offs are lucrative: CFA holders enjoy an average salary of $180,000; that is 54% higher than those without the designation.
Furthermore, CFA holders with ten years of experience demand 10% higher salaries than their MBA counterparts. Considering that the program occurs over the course of three years, and taking into account that the preparation material and tests cost about $7,000, the immediate returns of a CFA are higher than that of an MBA.
Salaries aside, according to Managing Directors and Associates at TD Securities and CIBC World Markets, most professionals with a finance focus will be required to pursue their CFA at some point. In fact, employers with the largest number of CFA holders include CIBC, Deutsche Bank, Fidelity Investments, Goldman Sachs, HSBC, Merrill Lynch, RBC, and UBS. For today?s young finance professionals, a CFA is a far better investment.
The Master of Business Administration (MBA) or the Chartered Financial Analyst (CFA) designation?
Which credential ultimately adds more value and helps its holder get on the fastest track to meeting his/her professional goals? There is no question that an individual with either should expect a higher salary. In fact, it would be ideal to carry both. However, time and money limit one?s ability to pursue both the CFA and MBA, so if you had to choose only one designation, which would it be?
In essence, the CFA is a far more specialized program, aimed primarily at those either interested in or already pursuing a career in the financial industry. On the other hand, the goal of the MBA is to expose its candidates to a wide variety of business streams ? marketing, finance, accounting, or organizational behaviour ? and give them the options to specialize or remain a generalist.
The CFA route is designed for individuals interested in a finance career. The candidate must have four years of experience related to the aforementioned tasks, or be in the process of accruing it. This designation has another caveat emptor however: Summer internships do not count.
MBA programs do not segregate candidates based on their past work experience and future work plans. However, there are a number of hurdles to jump over before entering a distinguished MBA program. Depending on which school you are interested in, you may be required to verify a certain amount of job experience (usually two years) before entering the program.
Due to fierce competition over entry into these programs, a strong supplementary application coupled with proven work experience and high GMAT scores are necessary for admission.
Now for the meat of the discussion: the costs versus pay-offs. Depending on the MBA school of choice, one will likely spend anywhere between $30,000-$100, 000 over the course of one to two years. Starting salaries also vary from school to school: Top US Ivy League schools have an average post-MBA salary of US $110,000 compared to the average pre-MBA salary of US $70,000. That is a 57% increase in salary upon graduation.
On a more domestic note, MBAs attending top Canadian business schools such as the Western?s Ivey, Queen?s, Rotman, and Schulich can expect a salary increase of 56% upon the completion of their degree; the average pre-MBA salary of US $45,000 increases to approximately US $70,000 upon program completion.
The CFA works a little differently. It consists of three tests that can be written once a year, and provided you pass all three of them on the first try, you can obtain your designation in three years. However, that is a big ?if?. According to studies, one needs a minimum of 250 hours to study for all three tests. However, the pay-offs are lucrative: CFA holders enjoy an average salary of $180,000; that is 54% higher than those without the designation.
Furthermore, CFA holders with ten years of experience demand 10% higher salaries than their MBA counterparts. Considering that the program occurs over the course of three years, and taking into account that the preparation material and tests cost about $7,000, the immediate returns of a CFA are higher than that of an MBA.
Salaries aside, according to Managing Directors and Associates at TD Securities and CIBC World Markets, most professionals with a finance focus will be required to pursue their CFA at some point. In fact, employers with the largest number of CFA holders include CIBC, Deutsche Bank, Fidelity Investments, Goldman Sachs, HSBC, Merrill Lynch, RBC, and UBS. For today?s young finance professionals, a CFA is a far better investment.
roshcrazy
Roshni Bhatia
ACCA vs CIMA which one is better and why?
1. ACCA tends focus more on the technical side of accounting practices and leads to jobs such as corporate accountant, auditor, tax accountant etc.
2. CIMA cover all the accounting practices but maybe not with the same intensity. It does however have much more of an emphisis on management reporting, corporate stratagy and organisations. CIMA jobs tend to fall more within the remit of forecasting, budget making, variance analysis and strategy.
To be honest both qualifications will help you career wise and there is a lot of cross-over between them. If you want to be an auditor you have to have an ACCA qualifation though.
ACCA , MSc or MBA?
ACCA is good, but you are not assured of time when you are going to complete it. Opportunity to work and earn income. Self disciple to study, support maybe lacking, high degree of fail 'cause of poor prep.
While MBA if its 18 month, then after 18 months you will graduate. Thats assuming you work hard and let yourself fail. Best support from Professors, full time, no income during the period. B-school wants to preserve its credibility so if they admit you, they will make sure they work to pass you.
MBA is more valuable than MSc, provided you go to a reputable B-school. As such your earnings after graduation will be substantial.
1. ACCA tends focus more on the technical side of accounting practices and leads to jobs such as corporate accountant, auditor, tax accountant etc.
2. CIMA cover all the accounting practices but maybe not with the same intensity. It does however have much more of an emphisis on management reporting, corporate stratagy and organisations. CIMA jobs tend to fall more within the remit of forecasting, budget making, variance analysis and strategy.
To be honest both qualifications will help you career wise and there is a lot of cross-over between them. If you want to be an auditor you have to have an ACCA qualifation though.
ACCA , MSc or MBA?
ACCA is good, but you are not assured of time when you are going to complete it. Opportunity to work and earn income. Self disciple to study, support maybe lacking, high degree of fail 'cause of poor prep.
While MBA if its 18 month, then after 18 months you will graduate. Thats assuming you work hard and let yourself fail. Best support from Professors, full time, no income during the period. B-school wants to preserve its credibility so if they admit you, they will make sure they work to pass you.
MBA is more valuable than MSc, provided you go to a reputable B-school. As such your earnings after graduation will be substantial.
roshcrazy
Roshni Bhatia
The CA institute is against all other professional institutes like the ICFAI, ICWAI and ICSI, as it knows that if all these institutes are granted equal statutory rights (as is the case in UK), its members will no more stand out in the market.
So it has asked its members not to use the CFA qualification after their names and better still not to pursue the CFA course.
But it is a fact that the maximum number of professionals doing the CFA course are CAs. India being a democracy, you cannot stop any one from gaining knowledge.
You have to decide to chart out your career path. The presumption that being a Cost Accountant, your growth is restricted is a myth. Not every CA becomes a financial controller.
There are many middle level managers who leave companies viz. Glaxo, L&T because they are stagnated. The reason the top level is stagnant or the company is stagnant. So you have to chart out a proper career plan.
So it has asked its members not to use the CFA qualification after their names and better still not to pursue the CFA course.
But it is a fact that the maximum number of professionals doing the CFA course are CAs. India being a democracy, you cannot stop any one from gaining knowledge.
You have to decide to chart out your career path. The presumption that being a Cost Accountant, your growth is restricted is a myth. Not every CA becomes a financial controller.
There are many middle level managers who leave companies viz. Glaxo, L&T because they are stagnated. The reason the top level is stagnant or the company is stagnant. So you have to chart out a proper career plan.
roshcrazy
Roshni Bhatia
Readers should be aware of the CFA controversy. Do you know that you cannot use the CFA qualification in the United States and Canada. Read the court order (www.aimr.org) for details.....And ICFAI does not seem to have learnt any lessons from this incident. They continue to give other degrees like CPA, CMA which are all trademark infringements..Come-on guys. Come up with some original ideas. Don't sell educational degrees like this in a cheap manner.
The real problem is that ICFAI is not transparent about this. When I enrolled into the course, they did not even mention it anywhere in the prospectus. Now-a-days I believe there is a fine print somewhere. Be careful folks, don't get cheated.
it is interesting to see what CFA institute is doing to attract the more students. It started the course named CPA. The institute of CPA , USA is also issuing similar qualifications and it is very much popular in india. Specially inthe time of globalisation where indian companies are started listing in US markets, the importance of CPA icreased because of statutory regulations in us and understanding of us gaaps.
Unfortunately CFA institte's CPA course is no where matching with US CPA course.
In India CA/ ICWA/CS institutes are working together for fulfiling various statutory responsibilities.
Just by issuing qualification CPA (FROM ICFAI) ONE WILL NOT BECOME CPA under US institute of CPA.
The real problem is that ICFAI is not transparent about this. When I enrolled into the course, they did not even mention it anywhere in the prospectus. Now-a-days I believe there is a fine print somewhere. Be careful folks, don't get cheated.
it is interesting to see what CFA institute is doing to attract the more students. It started the course named CPA. The institute of CPA , USA is also issuing similar qualifications and it is very much popular in india. Specially inthe time of globalisation where indian companies are started listing in US markets, the importance of CPA icreased because of statutory regulations in us and understanding of us gaaps.
Unfortunately CFA institte's CPA course is no where matching with US CPA course.
In India CA/ ICWA/CS institutes are working together for fulfiling various statutory responsibilities.
Just by issuing qualification CPA (FROM ICFAI) ONE WILL NOT BECOME CPA under US institute of CPA.
roshcrazy
Roshni Bhatia
CIMA, the Chartered Institute of Management Accountants is a world leading professional institute that offers an internationally recognised qualification in management accountancy, focusing on accounting in business.
CIMA prides itself on the commercial relevance of its syllabus, which is in tune with the activities of high performance organisations, and evolves continually to reflect the latest developments in global business.
CIMA - The Chartered Institute of Management Accountants - is a leading membership body that offers an internationally recognised professional qualification in management accountancy, which focuses on accounting for business.
As an organisation we are committed to constant improvement, and our reputation as a professional and regulatory body has never been stronger. We are increasingly the first choice for students and employers.
CIMA upholds high ethical and professional standards to maintain public confidence in management accountancy. Our members and students must adhere to CIMA's ethical guidelines, byelaws and regulations. All CIMA's governance activities - overseen by the Council and its committees - underpin the commitment to maintain the professional standards and competence of our members and students.
CIMA prides itself on the commercial relevance of its syllabus, which is in tune with the activities of high performance organisations, and evolves continually to reflect the latest developments in global business.
CIMA - The Chartered Institute of Management Accountants - is a leading membership body that offers an internationally recognised professional qualification in management accountancy, which focuses on accounting for business.
As an organisation we are committed to constant improvement, and our reputation as a professional and regulatory body has never been stronger. We are increasingly the first choice for students and employers.
CIMA upholds high ethical and professional standards to maintain public confidence in management accountancy. Our members and students must adhere to CIMA's ethical guidelines, byelaws and regulations. All CIMA's governance activities - overseen by the Council and its committees - underpin the commitment to maintain the professional standards and competence of our members and students.
roshcrazy
Roshni Bhatia
Chartered accountant (CA) is a brand originated from British Royal Charter and widely spread in the Commonwealth since its inception in 19th century. The standard for UK CAs is said to be equivalent to a British degree.
In the accounting profession, there is no competitive league table similar to Master of Business Administration. As such, no accounting body can ethically claim to be the best in the world or equivalent to an MBA in the absence of a fair comparison. For non-British nations, Certified Public Accountant brands are the most popular. In the 21st century, CPAs or non-Chartered Accountants (even in United Kingdom and Australia) have become the largest bodies in terms of global membership. e.g. ACCA & CPA-Australia. As CAs can now freely merge with or reciprocate with non-CAs or non-audit bodies, equal treatment is given to all stakeholders. All auditing bodies recognized under statutes should have acceptable quality.
In India, the profession of chartered accountancy is handled by ICAI.
The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for the regulation of the profession of chartered accountancy in India. During its more than fifty years of existence, the Institute has achieved recognition as a premier accounting body in the country for its contribution in the fields of education, professional development, maintenance of high accounting, auditing and ethical standards.
In the accounting profession, there is no competitive league table similar to Master of Business Administration. As such, no accounting body can ethically claim to be the best in the world or equivalent to an MBA in the absence of a fair comparison. For non-British nations, Certified Public Accountant brands are the most popular. In the 21st century, CPAs or non-Chartered Accountants (even in United Kingdom and Australia) have become the largest bodies in terms of global membership. e.g. ACCA & CPA-Australia. As CAs can now freely merge with or reciprocate with non-CAs or non-audit bodies, equal treatment is given to all stakeholders. All auditing bodies recognized under statutes should have acceptable quality.
In India, the profession of chartered accountancy is handled by ICAI.
The Institute of Chartered Accountants of India (ICAI) is a statutory body established under the Chartered Accountants Act, 1949 (Act No. XXXVIII of 1949) for the regulation of the profession of chartered accountancy in India. During its more than fifty years of existence, the Institute has achieved recognition as a premier accounting body in the country for its contribution in the fields of education, professional development, maintenance of high accounting, auditing and ethical standards.
roshcrazy
Roshni Bhatia
Chartered Financial Analyst (CFA) is a professional designation offered by the CFA Institute (formerly known as AIMR) to financial analysts who complete a series of three examinations and work for at least four years in the investment decision making process. CFA charterholders are also obliged to adhere to a strict Code of Ethics and Standards governing their professional conduct.
The CFA designation
The CFA designation is a significant qualification for people engaged in the financial and investment sector and has become a prerequisite for advancement at many firms. A study by the CFA Institute showed that professionals with the designation earn salaries 24% higher than their peers with equivalent credentials in equivalent positions.
In 1990, in hopes of boosting the credential's public profile, the the CFA Institute (formerly the Association for Investment Management and Research) was created from the merger of the Financial Analysts Federation (FAF) and the Institute of Chartered Financial Analysts (ICFA). The FAF was originally established in 1947 as a service organization for investment professionals in its societies and chapters.
Many of today's senior CFA charterholders were "grandfathered" into CFA charterholders at this time without today's current three level testing.
From 1963 (when the CFA designation was first used) to 2006, approximately 69,600 people from 126 different countries have been awarded the right to use the CFA designation. As of 2006, more than 116,000 more people are currently enrolled to take one of the examinations.
The CFA program began in the United States, but became increasingly international similar to the UK's Association of Chartered Certified Accountants (ACCA) which offers the Chartered Certified Accountant qualification (Designatory letters ACCA or FCCA) worldwide. By 2003 fewer than half the candidates in the CFA program were based in the US and Canada, with most of the other candidates based in Asia or Europe. India and China have shown some of the highest growth from 2005-2006 with increases of 25% and 53% respectively in the total number of charterholders.[1]
The basic requirements for prospective CFA candidates include a four-year university degree with being allowed to apply at the final year of the degree program (or international equivalent) or four years of qualified, professional work experience. [2] The program focuses on portfolio management and financial analysis, and provides only a generalist knowledge of other areas of finance.
Note: The CFA designation is not affiliated with the Chartered Financial Analyst degree offered by a university in India known as ICFAI or its affiliate the Council of Chartered Financial Analysts. ICFAI offers Masters degrees in Finance which to lead to a CFA Charter issued by the CCFA. AIMR sued and won a judgment [3] prohibiting the organization and its members from using the CFA or Chartered Financial Analyst mark in the United States and Canada. In August 2006, an Indian court issued a temporary injunction against the Indian organization as well. [4] The judgments made no assessment of the quality of the Indian program and merely discussed the trademark violation. The Indian Association of Investment Professionals[5] is the only organization in India which is affiliated with the CFA Institute.
The CFA exam
Candidates generally take one exam per year over three years and are written at a postgraduate level for financial professionals. Exams are challenging, with only 40% passing the Level I exam in June 2006; Europe achieved the highest pass rates in the recent exams with a 57% pass rate. [6] The December 2005 Level I Exam resulted in a worldwide pass rate of 34%. The Level II and III passing rates for 2006 were 48% and 76% respectively.
The Level I study program emphasizes tools and inputs and includes an introduction to asset valuation and portfolio management techniques.
The Level II study program emphasizes asset valuation and includes applications of the tools and inputs (including economics, financial statement analysis, and quantitative methods) in asset valuation.
The Level III study program emphasizes portfolio management and includes strategies for applying the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative investments for individuals and institutions.
All three exams are administered on paper, on a single day; the Level I exam is administered twice a year (usually the first weekend of June and December). The Level II and III exams are administered once a year, usually the first weekend of June. Each exam consists of two three-hour sessions. Both Level I and Level II are entirely multiple choice, while Level III consists of a session of short-answer questions and a session that is multiple choice. On the multiple-choice sections, there is no penalty for wrong answers.
Candidates who have taken the exam receive a score report that is intended to be fairly unspecific: there is no overall score for the test, only a Pass/Fail result. For each category of questions, each test-taker is given a broad range within which his or her performance falls: below 50%, between 50% and 70%, and above 70%. There is no pre-set passing grade for the exams; instead, the threshhold for passing is determined by multiplying by a certain percentage the score of the top performers on the specific year's exam. The wide variation in pass rates from year to year may partially stem from this calculation.
The CFA curriculum
The curriculum for the CFA program is based on a Candidate Body of Knowledge established by the CFA Institute. The curriculum includes:
Ethics and Professional Standards
Quantitative Methods (such as the time value of money, and statistical inference)
Economics
Financial Statement Analysis
Corporate Finance
Analysis of Investments (stocks, bonds, derivatives, venture capital, real estate, etc.)
Portfolio management and Analysis (asset allocation, portfolio risk, performance measurement, etc.)
The ethics section is primarily concerned with compliance and reporting rules when managing an investor's money or when issuing research reports, although there are some rules which pertain to more general professional behaviour (such as prohibitions against plagiarism). There are also rules that specifically relate to the proper use of the designation for charterholders and candidates. All of these rules are delineated in the 'Codes and Standards'.
The section on quantitative analysis is dominated by statistics and time series analysis. Other financial fundamentals such as the time value of money are also addressed. The statistics topics are fairly broad, but the main focuses are risk analysis, hypothesis testing and regression analysis. For the test, there are two calculators allowed, both of which have special financial functions for statistics and time value of money. The test also features other quantitative topics, but these are covered in other sections. For example, calculating depreciation of assets is a part of financial statement analysis (accounting), and determining currency arbitrage is a part of international economics.
Both micro and macro economics are covered. There are sections for international economics, mainly related to currency conversions and how they are affected by international interest rates and inflation.
The accounting section is heavily tested at Levels I and II, but is not a significant part of Level III. It is divided into financial statements analysis and corporate finance. Financial statement analysis considers the statement of cash flows, the balance sheet, and the income statement. Each of these documents gives a distinct view into the state and operations of a company. Corporate finance uses these views of the company to make decisions about projects, deciding how they will impact the company.
The section on security analysis is divided by the types of security. There is a general section on global markets, sections on equity (stocks), fixed income (bonds), and derivatives (futures, forwards, options and swaps). The first levels of the test require familiarity with these instruments, then the focus develops into correctly valuing them, and how to properly use them.
The final section is portfolio management. This section increases in importance with each of the three levels. Portfolio management is an analysis of the process of managing money. It depends heavily on all of the other topics. When managing money for others, ethics is obviously important. This section deals with how the investor's needs are met by the portfolio manager. Modern portfolio theory is also tested, the efficient frontier, Capital asset pricing model, etc.
Legal & Other Recognition
New York Stock Exchange(NYSE) granted CFA charterholders the option to take only the portion of the Supervisory Analyst examination dealing with exchange rules on research standards and related matters.
U.S. Securities and Exchange Commission (SEC) has approved the Chartered Financial Analyst (CFA) designation as equivalent to passing Series 7 license examination that qualifies a candidate for the solicitation, purchase, and/or sale of all securities products, including corporate securities, municipal securities, municipal fund securities, options, direct participation programs, investment company products, and variable contracts in United States.
U.S. American Institute of Certified Public Accountants(AICPA) granted CFA charterholders the option to satisfy the ABV examination requirements by passing the half-day Accredited in Business Valuation (ABV I) examination.
The charterholders of Chartered Financial Analyst(CFA) is recognized by UK's Securities & Investment Institute (SII) as the equivalent level of SII full membership (MSI) or fellow membership (FSI). (Details) Full membership of SII is recognized by several national investment professional bodies such as in Australia (Financial Services Institute of Australasia (Finsia) and Hong Kong.
has approved the Chartered Financial Analyst (CFA) designation as equivalent to a local recognised industry qualification of Certified Securities Investment Analyst(CSIA) in Taiwan.
The Academic and Accreditation Advisory Committee of HK's the Securities and Futures Commission (SFC) has approved the Chartered Financial Analyst (CFA) designation as a recognised industry qualification for the licensing of Responsible Officers in Hong Kong.
The charterholders of Chartered Financial Analyst(CFA) who meet the competence requirement, which include both education training and work experience, may apply to register with the Hong Kong Business Valuation Forum (HKBVF) as Registered Business Valuer (RBV) in Hong Kong)
The charterholders of Chartered Financial Analyst(CFA) is recognized by HK's Hong Kong Securities Instutites (HKSI) as the equivalent level of HKSI full membership (MHKSI).
The CFA designation
The CFA designation is a significant qualification for people engaged in the financial and investment sector and has become a prerequisite for advancement at many firms. A study by the CFA Institute showed that professionals with the designation earn salaries 24% higher than their peers with equivalent credentials in equivalent positions.
In 1990, in hopes of boosting the credential's public profile, the the CFA Institute (formerly the Association for Investment Management and Research) was created from the merger of the Financial Analysts Federation (FAF) and the Institute of Chartered Financial Analysts (ICFA). The FAF was originally established in 1947 as a service organization for investment professionals in its societies and chapters.
Many of today's senior CFA charterholders were "grandfathered" into CFA charterholders at this time without today's current three level testing.
From 1963 (when the CFA designation was first used) to 2006, approximately 69,600 people from 126 different countries have been awarded the right to use the CFA designation. As of 2006, more than 116,000 more people are currently enrolled to take one of the examinations.
The CFA program began in the United States, but became increasingly international similar to the UK's Association of Chartered Certified Accountants (ACCA) which offers the Chartered Certified Accountant qualification (Designatory letters ACCA or FCCA) worldwide. By 2003 fewer than half the candidates in the CFA program were based in the US and Canada, with most of the other candidates based in Asia or Europe. India and China have shown some of the highest growth from 2005-2006 with increases of 25% and 53% respectively in the total number of charterholders.[1]
The basic requirements for prospective CFA candidates include a four-year university degree with being allowed to apply at the final year of the degree program (or international equivalent) or four years of qualified, professional work experience. [2] The program focuses on portfolio management and financial analysis, and provides only a generalist knowledge of other areas of finance.
Note: The CFA designation is not affiliated with the Chartered Financial Analyst degree offered by a university in India known as ICFAI or its affiliate the Council of Chartered Financial Analysts. ICFAI offers Masters degrees in Finance which to lead to a CFA Charter issued by the CCFA. AIMR sued and won a judgment [3] prohibiting the organization and its members from using the CFA or Chartered Financial Analyst mark in the United States and Canada. In August 2006, an Indian court issued a temporary injunction against the Indian organization as well. [4] The judgments made no assessment of the quality of the Indian program and merely discussed the trademark violation. The Indian Association of Investment Professionals[5] is the only organization in India which is affiliated with the CFA Institute.
The CFA exam
Candidates generally take one exam per year over three years and are written at a postgraduate level for financial professionals. Exams are challenging, with only 40% passing the Level I exam in June 2006; Europe achieved the highest pass rates in the recent exams with a 57% pass rate. [6] The December 2005 Level I Exam resulted in a worldwide pass rate of 34%. The Level II and III passing rates for 2006 were 48% and 76% respectively.
The Level I study program emphasizes tools and inputs and includes an introduction to asset valuation and portfolio management techniques.
The Level II study program emphasizes asset valuation and includes applications of the tools and inputs (including economics, financial statement analysis, and quantitative methods) in asset valuation.
The Level III study program emphasizes portfolio management and includes strategies for applying the tools, inputs, and asset valuation models in managing equity, fixed income, and derivative investments for individuals and institutions.
All three exams are administered on paper, on a single day; the Level I exam is administered twice a year (usually the first weekend of June and December). The Level II and III exams are administered once a year, usually the first weekend of June. Each exam consists of two three-hour sessions. Both Level I and Level II are entirely multiple choice, while Level III consists of a session of short-answer questions and a session that is multiple choice. On the multiple-choice sections, there is no penalty for wrong answers.
Candidates who have taken the exam receive a score report that is intended to be fairly unspecific: there is no overall score for the test, only a Pass/Fail result. For each category of questions, each test-taker is given a broad range within which his or her performance falls: below 50%, between 50% and 70%, and above 70%. There is no pre-set passing grade for the exams; instead, the threshhold for passing is determined by multiplying by a certain percentage the score of the top performers on the specific year's exam. The wide variation in pass rates from year to year may partially stem from this calculation.
The CFA curriculum
The curriculum for the CFA program is based on a Candidate Body of Knowledge established by the CFA Institute. The curriculum includes:
Ethics and Professional Standards
Quantitative Methods (such as the time value of money, and statistical inference)
Economics
Financial Statement Analysis
Corporate Finance
Analysis of Investments (stocks, bonds, derivatives, venture capital, real estate, etc.)
Portfolio management and Analysis (asset allocation, portfolio risk, performance measurement, etc.)
The ethics section is primarily concerned with compliance and reporting rules when managing an investor's money or when issuing research reports, although there are some rules which pertain to more general professional behaviour (such as prohibitions against plagiarism). There are also rules that specifically relate to the proper use of the designation for charterholders and candidates. All of these rules are delineated in the 'Codes and Standards'.
The section on quantitative analysis is dominated by statistics and time series analysis. Other financial fundamentals such as the time value of money are also addressed. The statistics topics are fairly broad, but the main focuses are risk analysis, hypothesis testing and regression analysis. For the test, there are two calculators allowed, both of which have special financial functions for statistics and time value of money. The test also features other quantitative topics, but these are covered in other sections. For example, calculating depreciation of assets is a part of financial statement analysis (accounting), and determining currency arbitrage is a part of international economics.
Both micro and macro economics are covered. There are sections for international economics, mainly related to currency conversions and how they are affected by international interest rates and inflation.
The accounting section is heavily tested at Levels I and II, but is not a significant part of Level III. It is divided into financial statements analysis and corporate finance. Financial statement analysis considers the statement of cash flows, the balance sheet, and the income statement. Each of these documents gives a distinct view into the state and operations of a company. Corporate finance uses these views of the company to make decisions about projects, deciding how they will impact the company.
The section on security analysis is divided by the types of security. There is a general section on global markets, sections on equity (stocks), fixed income (bonds), and derivatives (futures, forwards, options and swaps). The first levels of the test require familiarity with these instruments, then the focus develops into correctly valuing them, and how to properly use them.
The final section is portfolio management. This section increases in importance with each of the three levels. Portfolio management is an analysis of the process of managing money. It depends heavily on all of the other topics. When managing money for others, ethics is obviously important. This section deals with how the investor's needs are met by the portfolio manager. Modern portfolio theory is also tested, the efficient frontier, Capital asset pricing model, etc.
Legal & Other Recognition
New York Stock Exchange(NYSE) granted CFA charterholders the option to take only the portion of the Supervisory Analyst examination dealing with exchange rules on research standards and related matters.
U.S. Securities and Exchange Commission (SEC) has approved the Chartered Financial Analyst (CFA) designation as equivalent to passing Series 7 license examination that qualifies a candidate for the solicitation, purchase, and/or sale of all securities products, including corporate securities, municipal securities, municipal fund securities, options, direct participation programs, investment company products, and variable contracts in United States.
U.S. American Institute of Certified Public Accountants(AICPA) granted CFA charterholders the option to satisfy the ABV examination requirements by passing the half-day Accredited in Business Valuation (ABV I) examination.
The charterholders of Chartered Financial Analyst(CFA) is recognized by UK's Securities & Investment Institute (SII) as the equivalent level of SII full membership (MSI) or fellow membership (FSI). (Details) Full membership of SII is recognized by several national investment professional bodies such as in Australia (Financial Services Institute of Australasia (Finsia) and Hong Kong.
has approved the Chartered Financial Analyst (CFA) designation as equivalent to a local recognised industry qualification of Certified Securities Investment Analyst(CSIA) in Taiwan.
The Academic and Accreditation Advisory Committee of HK's the Securities and Futures Commission (SFC) has approved the Chartered Financial Analyst (CFA) designation as a recognised industry qualification for the licensing of Responsible Officers in Hong Kong.
The charterholders of Chartered Financial Analyst(CFA) who meet the competence requirement, which include both education training and work experience, may apply to register with the Hong Kong Business Valuation Forum (HKBVF) as Registered Business Valuer (RBV) in Hong Kong)
The charterholders of Chartered Financial Analyst(CFA) is recognized by HK's Hong Kong Securities Instutites (HKSI) as the equivalent level of HKSI full membership (MHKSI).
roshcrazy
Roshni Bhatia
The Chartered Institute of Management Accountants (CIMA) is a United Kingdom professional body that offers a qualification in management accountancy, focusing on accounting for business.
It is one of a number of professional associations for accountants in the UK and Ireland (others include the ACCA, the ICAEW, the ICAI, the ICAS and CIPFA). Its particular emphasis is on developing the management accounting profession within the UK and worldwide.
CIMA is a member of the Consultative Committee of Accountancy Bodies and the International Federation of Accountants.
History
CIMA was founded in its current form in 1919 under the title "The Institute of Cost and Works Accountants" (ICWA). It specialised in the development of accounting technique for use in the internal control of manufacturing, service and public sector operations. It developed a position as the leading professional body in the areas of product costing, budgeting, management accounting, investment appraisal and business decision making.
Th Institute changed its name from ICWA to the Institute of Cost and Management Accountants (ICMA) in 1972 then to the Chartered Institute of Management Accountants (CIMA) in 1986 after the granting of a Royal Charter. Although based in the UK, it is active worldwide, particularly in current and former Commonwealth countries. Its membership has grown from 15,000 in 1970 to 65,000 in 2005. It has played a role in founding fraternal professional bodies such as the Institute of Cost and Works Accountants of India and the Institute of Management Accountants (USA).
Activities
CIMA operates a degree standard scheme of qualifying examinations, which all prospective members have to pass. It is also active in promoting local education, training and management development operations, the promotion of new techniques through its research foundation and the dissemination of management accounting practices through publications and other media related activities. CIMA has been active in recent educational and vocational initiatives in former Eastern bloc countries. CIMA publishes a monthly journal (supplied free to all members and registered students) titled 'Financial Management'. This last journal was titled 'Management Accounting' until 1998. CIMA also publishes a quarterly journal titled 'Management Accounting Research', mainly for an academic readership.
CIMA is recognised as a professional accounting body for various statutory purposes by UK and various overseas governments. The Institute regulates the activities of its members through various institutional means including a code of practice, a discipline committee and a continuing education scheme. The latter is a recent innovation intended to ensure that members do not become unfamiliar with latest theory and technique.
CIMA's governing body is its Council, comprised of members elected from its regional branches. Each of the branches has its own committee and is responsible for much of the 'grass roots' activity. Activity such as qualification development is undertaken from the London head office.
Membership
CIMA has two grades of full membership :
(1) Associate - designated by the letters ACMA
(2) Fellow - designated by the letters FCMA
To be admitted as an ACMA, a candidate must have completed a period of qualifying practice (which must be documented), have passed the Institute's qualifying examinations and be nominated for membership by two individuals who have direct experience of the candidates work experience. The proposer and seconder need not be members of CIMA, nor even accountants.
To have membership upgraded to FCMA, a candidate ACMA must have appropriate experience of management accounting at a senior level.
Examinations apart, rules are not enforced rigidly, and each candidate for admission to the different grades of membership is considered on his/her own merits. In the past, CIMA has offered forms of association which do not amount to full membership - eg the "Affiliate" status which was promoted in the 1970s.
Strategic Alliances
CIMA members have access to a number of strategic alliance agreements, including:
An accelerated route to Associateship of the Association of Corporate TreasurersDetails
A mutual recognition agreement with the Society of Management Accountants of Canada Details (pdf)
A strategic alliance with the Institute of Chartered Accountants of Australia Details
On 26 September 2006, CIMA announced a joint qualification program with the New Zealand Institute of Chartered Accountants Details
The following is not based on strategic alliances but rather the policies of other accounting bodies (and are not reciprocal):
For full members of CCAB organisations including CIMA for over 5 years, a direct entry route to membership of the Institute of Chartered Accountants in England and Wales is available
Development
In recent years, CIMA has been party to merger talks with other professional accounting bodies, most notably with the ICAEW in 1995. These talks have never produced an outcome, largely because of the reluctance of individual members to accept the possible change in their professional status that might be involved.
In its early years, CIMA was known as the "blue collar" accounting body and was always a little more radical than the other bodies. For example, it was the first accounting body to introduce marketing, business strategy and computing systems into its suite of examinations.
It is one of a number of professional associations for accountants in the UK and Ireland (others include the ACCA, the ICAEW, the ICAI, the ICAS and CIPFA). Its particular emphasis is on developing the management accounting profession within the UK and worldwide.
CIMA is a member of the Consultative Committee of Accountancy Bodies and the International Federation of Accountants.
History
CIMA was founded in its current form in 1919 under the title "The Institute of Cost and Works Accountants" (ICWA). It specialised in the development of accounting technique for use in the internal control of manufacturing, service and public sector operations. It developed a position as the leading professional body in the areas of product costing, budgeting, management accounting, investment appraisal and business decision making.
Th Institute changed its name from ICWA to the Institute of Cost and Management Accountants (ICMA) in 1972 then to the Chartered Institute of Management Accountants (CIMA) in 1986 after the granting of a Royal Charter. Although based in the UK, it is active worldwide, particularly in current and former Commonwealth countries. Its membership has grown from 15,000 in 1970 to 65,000 in 2005. It has played a role in founding fraternal professional bodies such as the Institute of Cost and Works Accountants of India and the Institute of Management Accountants (USA).
Activities
CIMA operates a degree standard scheme of qualifying examinations, which all prospective members have to pass. It is also active in promoting local education, training and management development operations, the promotion of new techniques through its research foundation and the dissemination of management accounting practices through publications and other media related activities. CIMA has been active in recent educational and vocational initiatives in former Eastern bloc countries. CIMA publishes a monthly journal (supplied free to all members and registered students) titled 'Financial Management'. This last journal was titled 'Management Accounting' until 1998. CIMA also publishes a quarterly journal titled 'Management Accounting Research', mainly for an academic readership.
CIMA is recognised as a professional accounting body for various statutory purposes by UK and various overseas governments. The Institute regulates the activities of its members through various institutional means including a code of practice, a discipline committee and a continuing education scheme. The latter is a recent innovation intended to ensure that members do not become unfamiliar with latest theory and technique.
CIMA's governing body is its Council, comprised of members elected from its regional branches. Each of the branches has its own committee and is responsible for much of the 'grass roots' activity. Activity such as qualification development is undertaken from the London head office.
Membership
CIMA has two grades of full membership :
(1) Associate - designated by the letters ACMA
(2) Fellow - designated by the letters FCMA
To be admitted as an ACMA, a candidate must have completed a period of qualifying practice (which must be documented), have passed the Institute's qualifying examinations and be nominated for membership by two individuals who have direct experience of the candidates work experience. The proposer and seconder need not be members of CIMA, nor even accountants.
To have membership upgraded to FCMA, a candidate ACMA must have appropriate experience of management accounting at a senior level.
Examinations apart, rules are not enforced rigidly, and each candidate for admission to the different grades of membership is considered on his/her own merits. In the past, CIMA has offered forms of association which do not amount to full membership - eg the "Affiliate" status which was promoted in the 1970s.
Strategic Alliances
CIMA members have access to a number of strategic alliance agreements, including:
An accelerated route to Associateship of the Association of Corporate TreasurersDetails
A mutual recognition agreement with the Society of Management Accountants of Canada Details (pdf)
A strategic alliance with the Institute of Chartered Accountants of Australia Details
On 26 September 2006, CIMA announced a joint qualification program with the New Zealand Institute of Chartered Accountants Details
The following is not based on strategic alliances but rather the policies of other accounting bodies (and are not reciprocal):
For full members of CCAB organisations including CIMA for over 5 years, a direct entry route to membership of the Institute of Chartered Accountants in England and Wales is available
Development
In recent years, CIMA has been party to merger talks with other professional accounting bodies, most notably with the ICAEW in 1995. These talks have never produced an outcome, largely because of the reluctance of individual members to accept the possible change in their professional status that might be involved.
In its early years, CIMA was known as the "blue collar" accounting body and was always a little more radical than the other bodies. For example, it was the first accounting body to introduce marketing, business strategy and computing systems into its suite of examinations.
roshcrazy
Roshni Bhatia
The ICFAI University (hereinafter referred to as the University) represents the multi-state network of universities, sponsored by the Institute of Chartered Financial Analysts of India (hereinafter referred to as the Institute) in Uttaranchal, Tripura, Sikkim, Meghalaya, Mizoram and Nagaland under respective legislations. The Governments of Rajasthan and Chattisgarh issued letters of intent to the Institute for the establishment of Universities. Each University in the network is a separate and independent legal entity. Consequently, the University confers degrees at bachelor’s, master’s and doctoral levels on eligible students subject to the University Regulations. The University Grants Commission has included the Institute of Chartered Financial Analysts of India (Icfai) University, Dehradun, Uttaranchal in the list of Universities maintained by the University Grants Commission under Section 2 (f) of the UGC Act, 1956.
A number of educational programs are offered in management, finance, banking, insurance, accounting, law, information technology, arts, commerce, education and science & technology at bachelor’s and master’s levels on full-time campus and flexible learning formats. Examinations are conducted at over 130 test centers all over India, four times a year.
The sponsor
The University has been sponsored by the Institute, which was established in 1984 with the objective of offering educational programs to students, executives and professionals in India. The Institute launched the Certification Program for Financial Analysts in 1985. In 1995, the Icfai Business School was established to offer the MBA Program with various specializations. Currently, there are over 9,387 candidates who successfully graduated from Icfai and IBS. The Institute has set-up several institutions and professional bodies for imparting educational and training programs.
The Institute has established an all India network of its own branch offices at over 200 locations, to provide various services to students pursuing the educational programs. Currently, there are over 75,000 students pursuing various programs. There are over 3,000 faculty members engaged in teaching, research and consulting work.
IBS-CDC
ICFAI University also has a division called IBS-CDC which stands for "ICFAI Business School- Case Development Centre". Founded in July 2003, this division develops case studies based on recent published sources of global and, to an extent, Indian companies.
Other activities include the development of teaching notes, structured assignments, and case volumes or compilations of case studies in various functional areas of management, all of which are designed to assist professors in discussing case studies at management institutes across the globe.
The cases developed by IBS-CDC are regularly uploaded at the European Case Clearing House
A number of educational programs are offered in management, finance, banking, insurance, accounting, law, information technology, arts, commerce, education and science & technology at bachelor’s and master’s levels on full-time campus and flexible learning formats. Examinations are conducted at over 130 test centers all over India, four times a year.
The sponsor
The University has been sponsored by the Institute, which was established in 1984 with the objective of offering educational programs to students, executives and professionals in India. The Institute launched the Certification Program for Financial Analysts in 1985. In 1995, the Icfai Business School was established to offer the MBA Program with various specializations. Currently, there are over 9,387 candidates who successfully graduated from Icfai and IBS. The Institute has set-up several institutions and professional bodies for imparting educational and training programs.
The Institute has established an all India network of its own branch offices at over 200 locations, to provide various services to students pursuing the educational programs. Currently, there are over 75,000 students pursuing various programs. There are over 3,000 faculty members engaged in teaching, research and consulting work.
IBS-CDC
ICFAI University also has a division called IBS-CDC which stands for "ICFAI Business School- Case Development Centre". Founded in July 2003, this division develops case studies based on recent published sources of global and, to an extent, Indian companies.
Other activities include the development of teaching notes, structured assignments, and case volumes or compilations of case studies in various functional areas of management, all of which are designed to assist professors in discussing case studies at management institutes across the globe.
The cases developed by IBS-CDC are regularly uploaded at the European Case Clearing House
ruvi_143
Avishkar Agarwal
Become a candidate
1. Fulfill the entrance requirements. You must:
Have a U.S. bachelor’s (or equivalent) degree, be in the final year of your bachelor's degree program, or have four years of qualified, professional work experience or a combination of work and college experience that totals at least four years
Meet the professional conduct admission criteria (during the application process, you will be asked to sign statements of Professional Conduct and Candidate Responsibility)
Be prepared to take the exams in English
2. Sign up for your first exam. Enrolling for the first exam also registers you as a candidate in the CFA Program. Requires one-time registration fee in addition to exam enrollment fee.
Whats all dis.............do i need to have a U.S. Bahelors degree......for applying for C.F.A.......TYhis is ridiculous.....
PLZ GUYS help
1. Fulfill the entrance requirements. You must:
Have a U.S. bachelor’s (or equivalent) degree, be in the final year of your bachelor's degree program, or have four years of qualified, professional work experience or a combination of work and college experience that totals at least four years
Meet the professional conduct admission criteria (during the application process, you will be asked to sign statements of Professional Conduct and Candidate Responsibility)
Be prepared to take the exams in English
2. Sign up for your first exam. Enrolling for the first exam also registers you as a candidate in the CFA Program. Requires one-time registration fee in addition to exam enrollment fee.
Whats all dis.............do i need to have a U.S. Bahelors degree......for applying for C.F.A.......TYhis is ridiculous.....
PLZ GUYS help
roshcrazy
Roshni Bhatia
Indian Vs American
Let me give you a breif difference between these two:-
Firstly, Indian CFA will cost u around 25000 whereas for International CFA you have to shell out 4-5 lacs
Secondly, Indian CFA is also internationally recognized, looking at the Indian scenario, the course material is specifically designed to meet the needs of the emerging markets like India with global content, so that the CFA can act global and think local.
Thirdly, you will always receive course material for Indian CFA but its very difficult to get cource material for Ameriacn CFA
Forthly, Indian CFA program armed with the MFA degree, can pursue the PhD program in India or anywhere else in the world.
Fifthly, since course material is not available properly so International CFA is very tough to crack.
Finally what matters is placements, even if u get an Indian CFA degree you will be placed on any given day in top notch co.
Let me give you a breif difference between these two:-
Firstly, Indian CFA will cost u around 25000 whereas for International CFA you have to shell out 4-5 lacs
Secondly, Indian CFA is also internationally recognized, looking at the Indian scenario, the course material is specifically designed to meet the needs of the emerging markets like India with global content, so that the CFA can act global and think local.
Thirdly, you will always receive course material for Indian CFA but its very difficult to get cource material for Ameriacn CFA
Forthly, Indian CFA program armed with the MFA degree, can pursue the PhD program in India or anywhere else in the world.
Fifthly, since course material is not available properly so International CFA is very tough to crack.
Finally what matters is placements, even if u get an Indian CFA degree you will be placed on any given day in top notch co.
roshcrazy
Roshni Bhatia
you may check this link- http://www.orkut.com/CommMsgs.aspx?cmm=9515098&tid=2519530072586348591&start=1
chk it mighthelp u...
chk it mighthelp u...