End of CMA Profession? | Deep Analysis of MCA Report on CMA | By CA/CMA Santosh Kumar Sir

Summary

The video script discusses proposed changes by the Ministry of Corporate Affairs (MCA) in India that could impact the scope of CMA (Cost and Management Accountant) degree holders from 2025 onwards. The speaker addresses potential shifts in employment and practice opportunities, emphasizing that despite rumors, the changes are likely to broaden the scope and opportunities for CMA professionals. The analysis covers various sectors, including construction services, agro-based industries, and specialized vehicles, suggesting an expansion of the CMA role and a positive outlook for the profession.

Takeaways

• 😀 The Ministry of Corporate Affairs (MCA) has proposed changes to the scope of the CMA (Cost and Management Accountant) degree, which if implemented from 2025, could bring significant changes to the profession.
• 📈 There are two paths for CMA graduates: employment or starting their own practice. The current trend shows that approximately 99% of students opt for employment after completing their CMA degree.
• 🔑 The MCA has proposed increasing the turnover limit for cost record maintenance from 35 crores to 65 crores, which is a significant change considering inflation and the growth of companies over the past years.
• 💡 The speaker emphasizes the importance of understanding the implications of these changes, especially for those in practice, and encourages active participation in the discussion.
• 🏢 For companies in the regulated sector with a total turnover of 50 crores and a covered product turnover of 25 crores, the cost audit compulsion will remain, but the limits are proposed to be increased to 93 crores and 47 crores respectively.
• 📊 The proposal includes a new format for cost audit reports for special industries, aiming to reduce the workload for cost accountants by simplifying the process.
• 📈 The scope of work for cost accountants is set to increase as they will now need to maintain records for products with a turnover of more than 5% of the total turnover, in addition to the collective records.
• 🔄 The introduction of a rotation system for cost auditors is proposed, similar to financial auditors, to increase transparency and provide opportunities for new practitioners.
• 🚀 The changes are expected to enhance the role and scope of cost accountants, including the introduction of cost performance indicators in annual reports and recognition of the CMA's contribution.
• 🛑 The MCA has also proposed removing certain sectors from the cost audit domain, such as glass milk, powder rubber, and coffee and tea, while adding new sectors like construction services, agro product storage, and specialized vehicles for defense and police forces.

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