Combined Statements of Financial Position
(in thousands)

See accompanying notes to combined financial statements.

Combined Statements of Activities
(in thousands)

See accompanying notes to combined financial statements.

Combined Statements of Cash Flows
(in thousands)

See accompanying notes to combined financial statements.

Notes to Combined Financial Statements
(in thousands)

1. Nature of Organization

Institute of Management Accountants, Inc. (“IMA”) is an organization that provides members an opportunity to increase their knowledge of accounting practices and methods and to increase their individual capabilities through professional education programs and accounting literature that are available to all members.

2. Principles of Combination

The combined financial statements include the accounts of IMA, the Institute of Certified Management Accountants, Inc. (“ICMA”), the Institute of Management Accountants Research Foundation, Inc. (“IMARF”) and the Institute of Management Accountants Memorial Education Fund, Inc. (“IMAMEF”) (collectively, “IMA and Affiliates”). In combination, all significant interfund balances have been eliminated.

(a) Institute of Management Accountants, Inc.

IMA maintains operating and reserve funds as follows:

(i) Institute of Management Accountants, Inc. - Current Operating Fund
The Current Operating Fund supports current operations of IMA and its subsidiaries, IMA Services, Inc., a “for-profit” subsidiary required to maintain a representative office in China, and IMA Products & Services, Inc., a “not-for-profit” subsidiary established to process CMA Learning System sales. Both subsidiaries were established in furtherance of IMA’s tax-exempt purposes. At June 30, 2012 and 2011, the net assets (deficit) of the Current Operating Fund were $(428) and $169, respectively.

(ii) Institute of Management Accountants, Inc. - Reserve Fund
The Reserve Fund was established for the purpose of providing funds to ensure the continuous extension and development of activities in general furtherance of the purpose of IMA. Appropriations from the Reserve Fund require the approval of the Board of Directors. At June 30, 2012 and 2011, the net assets of the Reserve Fund were $3,582 and $3,306, respectively.

(b) Institute of Certified Management Accountants, Inc.

ICMA administers the Certified Management Accountant credentialing program of IMA. At June 30, 2012 and 2011, the net assets were $6,094 and $5,310, respectively.

(c) Institute of Management Accountants Research Foundation, Inc.

IMARF was created to administer the research program of IMA. At June 30, 2012 and 2011, the net assets (deficit) were $143 and $(1), respectively.

(d) Institute of Management Accountants Memorial Education Fund, Inc.

The net assets of IMAMEF include the Memorial Fund, the Stuart Cameron McLeod Fund, the Heckert Scholarship Funds and the Howard Siers Ethics Memorial Fund. The funds are administered by the Board of Trustees of IMAMEF.

(i) Memorial Funds
The Memorial Fund (“Fund”) was established for the purpose of supporting and furthering the educational goals of IMA. Earnings on Fund investments may be expended for research and educational purposes. At June 30, 2012 and 2011, the net assets were $174 and $182, respectively, of which $174 and $182 was available for future expenditures.

The Howard Siers Ethics Memorial Fund was established to accept contributions to further the ethics program. Net assets for the Fund as of June 30, 2012 and 2011 were $35 and $38, respectively.

(ii) Scholarship Funds
The Scholarship Funds include bequests from Stuart Cameron McLeod, and Josiah Brooks Heckert and Eileen Heckert. Income of the funds has been used for scholarship and other educational programs. During the years ended June 30, 2012 and 2011, $17 and $41, respectively, was expended for scholarship awards. At June 30, 2012 and 2011, the total net assets of the Scholarship Funds were $2,282 and $2,440, respectively.

3. Summary of Significant Accounting Policies

(a) Cash and Cash Equivalents

For purposes of the combined statement of cash flows, highly liquid financial instruments with original maturities of 90 days or less, when purchased, are considered to be cash equivalents.

(b) Financial Statement Presentation

The classification of a not-for-profit organization’s net assets and its support, revenue and expenses is based on the existence or absence of donor-imposed restrictions. It requires that the amounts for each of three classes of net assets, permanently restricted, temporarily restricted, and unrestricted, be displayed in a statement of financial position and that the amounts of change in each of those classes of net assets be displayed in a statement of activities.

These classes are defined as follows:

(i) Permanently Restricted - Net assets resulting from contributions and other inflows of assets whose use by IMA and Affiliates are limited by donor-imposed stipulations that neither expire by passage of time nor can be fulfilled or otherwise removed by actions of IMA and Affiliates.

(ii) Temporarily Restricted - Net assets resulting from contributions and other inflows of assets whose use by IMA and Affiliates are limited by donor-imposed stipulations that either expire by passage of time or can be fulfilled and removed by actions of IMA and Affiliates pursuant to those stipulations. When such stipulations end or are fulfilled, such temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities.

(iii) Unrestricted Board Designated - Net assets consist of all monies or assets contributed to IMA and Affiliates designated for the support and benefit of the programs and activities of IMA and Affiliates by the Board of Directors.

(iv) Unrestricted - The part of net assets that is neither permanently nor temporarily restricted by donor-imposed stipulations.

(c) Fair Value Measurements

Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820-10, “Fair Value Measurements and Disclosures”, establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that inputs that are most observable be used when available. Observable inputs are inputs that market participants operating within the same marketplace as IMA would use in pricing IMA’s asset or liability based on independently derived and objectively determinable market data. Unobservable inputs are inputs that cannot be sourced from a broad active market in which assets or liabilities identical or similar to those of IMA are traded. IMA estimates the price of any assets for which there are only unobservable inputs by using assumptions that market participants that have investments in the same or similar assets would use as determined by the money managers administering each investment based on best information available in the circumstances. The input hierarchy is broken down into three levels based on the degree to which the exit price is independently observable or determinable as follows:

Level 1 – Valuation based on quoted market prices in active markets for identical assets or liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment.

Level 2 – Valuation based on quoted market prices of investments that are not actively traded or for which certain significant inputs are not observable, either directly or indirectly.

Level 3 – Valuation based on inputs that are unobservable and reflect management’s best estimate of what market participants would use as fair value.

(d) Fixed Assets

Fixed assets are recorded at cost. Property and equipment are depreciated on the straight-line method over their estimated useful lives. Software is amortized on the straight-line method over its useful life.

(e) Revenue Recognition

Membership dues are recorded as revenue during the applicable membership period. The portion of such dues which has not been recognized represents the deferred revenue balance at year-end. No portion of such dues is allocated to subscription revenues in the financial statements. Registration and examination fees, which are nonrefundable, are recorded as revenue when paid. Advertising revenues are recorded as revenue when the applicable publications are issued.

(f) Income Taxes

IMA, IMAMEF, IMARF and IMA Products and Services, LLC were incorporated in the State of New Jersey and are exempt from Federal, state and local income taxes under Section 501(c)(3) of the Internal Revenue Code (the “Code”) and therefore have made no provision for income taxes in the accompanying combined financial statements. ICMA is currently exempt from Federal income tax under 501(c)(6) of the Code. IMA, IMAMEF, IMARF, IMA Products and Services, LLC and ICMA have been determined by the Internal Revenue Service not to be “private foundations” within the meaning of Section 509(a) of the Code. There was no unrelated business income tax payable for the years ended June 30, 2012 and 2011.

IMA Services, Inc., a for-profit corporation, recognizes income tax expense in accordance with ASC 740-10, “Income Taxes”, which utilizes the asset and liability method. This method requires recognition of deferred income taxes based on temporary differences between the financial reporting and income tax bases of assets and liabilities, using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

(g) Accounting for Uncertainty in Income Taxes

Under ASC 740, “Income Taxes”, an organization must recognize the tax benefit associated with tax positions taken for tax return purposes when it is more likely than not that the position will not be sustained. The Organization does not believe there are any material uncertain tax positions and, accordingly, it has not recognized any liability for unrecognized tax benefits. IMA and Affiliates have filed IRS Form 990 tax returns, as required, and all other applicable returns in jurisdictions where they are required. For the year ended June 30, 2012, there was no interest or penalties recorded or included in the combined statement of activities.

(h) Use of Estimates

In preparing its financial statements in accordance with accounting principles generally accepted in the United States of America, IMA makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

4. Investments at Fair Value

The following is a summary of investments at fair value and cost at June 30, 2012.

The following is a summary of investments at fair value and cost at June 30, 2011.

The following tables are set forth by level within the fair value hierarchy of IMA and Affiliates’ investments at fair value as of June 30, 2012 and 2011. As required by ASC 820-10, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

* Mutual funds fair value estimated using net asset value (“NAV”).

Investments for which fair value is estimated using reported NAV or the equivalent are able to be redeemed on a daily basis. At June 30, 2012, there were no unfunded commitments.

The Common Investment Fund (“CIF”) was established to invest the pooled funds of the Reserve Fund, the Current Operating Fund, IMAMEF and ICMA for better management and return on investment. The Board policy includes the net unrealized capital gains (losses) in the distribution to the funds. Interest dividends, net realized and unrealized gains (losses) received from investments of the equity portfolio in the fixed income portfolio, and the cash equivalents portfolio shall be pooled in the CIF and distributed from the CIF to the underlying funds in proportion to the share which each of those funds holds, at cost, of the total investment of the CIF.

Investments in equity securities with readily determinable fair values and all investments in debt securities are reported at fair value with unrealized gains and losses included on the combined statement of activities. For the years ended June 30, 2012 and 2011, the amount of net unrealized gains (losses) on investments was $(426) and $1,497, respectively.

Interest, dividends, unrealized gains (losses) on investment at fair value, and net realized gains (losses) on sales of investment at fair value are apportioned to the respective funds and are reflected in net assets at June 30, 2012 and 2011.

5. Other Assets

In 1985, IMA entered into a joint venture agreement with four other accounting related organizations, whereby it acquired a 20% noncontrolling interest in the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). The joint initiative, COSO, is dedicated to providing thought leadership through the development of frameworks and guidance on enterprise risk management, internal control and fraud deference. The investment is recorded using the equity method of accounting and is reported in other current assets in the accompanying combined statements of financial position. For the year ended June 30, 2012, IMA’s investment in COSO was valued at $213.

6. Fixed Assets, Net

At June 30, 2012 and 2011, fixed assets, net, consisted of the following:

7. Postretirement Plans

(a) Pension Plan

Effective April 1, 1994, IMA established the Employees’ Retirement Plan (“ERP”) and Employees’ Savings Plan which are qualified under Internal Revenue Code Sections 401(a) and 403(b), respectively. Effective January 1, 2000, the ERP was amended and restated to a 401(k) plan and the Employees’ Savings Plan was frozen.

Under the 401(k) plan, eligible employees may contribute a percentage of eligible compensation and IMA will make an appropriate matching contribution. In addition, IMA may also make a profit-sharing contribution to eligible participants at its discretion, annually. IMA contributed $171 and $187 to the 401(k) plan during the years ended June 30, 2012 and 2011, respectively.

(b) Other Postretirement Benefits

IMA provides certain health care and life insurance benefits for eligible retired employees. Substantially all of IMA’s employees may become eligible for those benefits if they reach normal retirement age while working for IMA.

ASC 715, “Accounting for Defined Benefit Pension and Other Postretirement Plans”, requires IMA to recognize the funded status of its postretirement plan as a prepaid asset or accrued liability, and to include as part of net assets the net deferred and unrecognized gains and losses related to the plan. Based on the June 30, 2012 and June 30, 2011 measurements of plan obligations, IMA reported a decrease in net assets in the amount of $(66) as of June 30, 2012 and an increase in net assets in the amount of $16 as of June 30, 2011.

Weighted average assumptions used to determine net periodic benefit cost for the years ended June 30, 2012 and 2011:

Assumed healthcare cost trend rates have significant effect on the amount reported for the healthcare plans. There is no healthcare cost trend assumption since IMA provides a health stipend that is capped.

The following table sets forth the status of the postretirement plan as of June 30, 2012 and 2011:

A summary of benefit cost, contributions, and benefits paid for the years ended June 30, 2012 and 2011, is as follows:

Net periodic postretirement cost included the following components:

The estimated future benefit payments are as follows:

8. Commitments and Contingencies

IMA and Affiliates are subject to claims and suits in the ordinary course of business. Management believes that the ultimate resolution of all suit proceedings will not have a material effect on IMA and Affiliates.

9. Administration and Occupancy Expenses

Administration and occupancy expenses consist of the following at June 30, 2012 and 2011:

Of the above totals, $2,961 and $2,876 were for salaries and wages at June 30, 2012 and 2011, respectively.

10. Subsequent Events

IMA and Affiliates’ management has performed subsequent event procedures through September 24, 2012, which is the date the combined financial statements were available to be issued, and there were no subsequent events requiring adjustments to the combined financial statements or disclosures stated herein.