Section 5 of The Cost Accountants Act, 1959
- (1)The members of the Institute shall be divided into two classes designated respectively as associates and fellows.
- (2)Any person other than a person to whom the provisions of sub-section (3) apply shall, on his name being entered in the 1[Register of members], be deemed to have become an associate member of the Institute and so long as his name remains so entered, shall be entitled to use the letters 2[ACMA] after his name to indicate that he is an associate member of the 3[Institute of Cost Accountants of India].
- (3)Any person who was a fellow of the dissolved company and who is entitled to have his name entered in the 1[Register of members] under clause (i) of sub-section (1) of section 4, shall be entered in the 1[Register of members]as a fellow of the Institute. 4[(4) A member, being an associate who has been in continuous practice in India for at least five years, whether before or after the commencement of this Act, or whether partly before and partly after the commencement of this Act, and a member who has been an associate for a continuous period of not less than five years and who possesses such qualifications as the Council may prescribe with a view to ensuring that he has experience equivalent to the experience normally acquired as a result of continuous practice for a period of five years as a cost accountant shall, on payment of such fees, as may be determined, by notification, by the Council, 5***, and on application made and granted in the prescribed manner, be entered in the Register as a fellow of the Institute 6*****. Explanation I.--For the purposes of this sub-section, a person shall be deemed to have practiced in India for any period for which he has held a certificate of practice under section 6, notwithstanding that he did not actually practice during that period. Explanation II.--In computing the continuous period during which a person has been an associate of the Institute, there shall be included any continuous period during which the person has been an associate of the dissolved company immediately before he became an associate of the Institute.]
- (5)Any person whose name is entered in the1[Register of members] as a fellow of the Institute and so long as his name remains so entered, shall be entitled to use the letters 7[FCMA] after his name to indicate that he is a fellow of the 3[Institute of Cost Accountants of India].
Summary
- Members of the Institute are divided into two classes: associates and fellows.
- Anyone newly entered in the Register is deemed an associate and can use the letters ACMA after their name.
- A member who was a fellow of the old dissolved company is automatically entered as a fellow of the Institute.
- An associate can become a fellow if they have been in continuous practice in India for at least five years.
- Alternatively, an associate can become a fellow if they have been an associate for five years and have equivalent experience approved by the Council.
- Fellows are entitled to use the letters FCMA after their name.
Practical examples
FAQ
1. What are the two types of members in the Institute?
The members are divided into associate members and fellow members.
2. What letters can an associate member use after their name?
An associate member can use the letters ACMA, which stands for Associate Cost and Management Accountant.
3. How many years of practice does an associate need to become a fellow?
An associate needs at least five years of continuous practice in India, or five years of equivalent experience as an associate, to qualify as a fellow.
4. Does holding a certificate of practice count as practice even if the member did not actually practice?
Yes, for the purpose of becoming a fellow, a person is deemed to have practiced for any period they held a certificate of practice under Section 6.
5. What letters can a fellow member use?
A fellow member can use the letters FCMA, which stands for Fellow Cost and Management Accountant.
Test yourself
Q1.Under Section 5 of The Cost Accountants Act, 1959, what letters is an associate member entitled to use after their name?
Q2.Under Section 5 of The Cost Accountants Act, 1959, how is the "continuous practice" period calculated for an associate who wants to become a fellow?
Q3.Under Section 5 of The Cost Accountants Act, 1959, what is the minimum duration an associate must be a member before they can apply to be a fellow based on equivalent qualifications and experience?
Q4.Under Section 5 of The Cost Accountants Act, 1959, how can a person who was a fellow of the dissolved company become a fellow of the new Institute?
Q5.How does the certificate of practice under Section 6 of The Cost Accountants Act, 1959, impact an associate's eligibility to become a fellow under Section 5?
Q6.Under Section 5 of The Cost Accountants Act, 1959, how does a member's entry in the Register under Section 4 affect their initial class of membership?