- •3.1 Lead-in
- •3.2 Language input
- •3.2.1 Consult a dictionary and practice the pronunciation of the following words and word combinations, quote the sentences in which they are used in the text or submit the examples of your own:
- •3.2.2 Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column:
- •Environment of Accounting
- •3.4 Comprehension Understanding the reading
- •3.4.1 Give extensive answers to the questions. Use the following expressions to present your answers:
- •Scanning
- •3.4.2 Scan the text to determine whether these statements are true (t) or false (f), and if they are false say why:
- •3.4.3 Scan the text and find the information to complete the following lists:
- •3.4.4 Scan the text and find the English equivalents for the following:
- •3.4.5 Develop the following ideas. Make use of the active vocabulary, given in brackets:
- •3.5 Practice
- •Word Building
- •Complete the table with words from the text and related forms. Put a stress mark in front of the stressed syllable.
- •3.5.2 A. Read the text, ignoring the missing parts. Accounting Assumptions and Principles
- •Financial Statements
- •3.5.3 A. Fill in the gaps with the suitable expressions from the box:
- •5.5.4 A. Read the text, give the English equivalents for the words in brackets, and single out the main items of the income statement.
- •Income Statement
- •In eur thousand
- •3.5.5 A. Read the text and single out the main items of the balance sheet.
- •Illustration 5.2.
- •July 31, 200x
- •I. Consider the other parts of the consolidated balance sheet given below. Match the English word combinations in the left-hand column with the Russian equivalents in the right-hand column.
- •A. Read the text and supply the prepositions where necessary.
- •Illustration 5. 3.
- •3.5.7 Say it in English:
- •5.5.8 A. What do the following abbreviations stand for?
- •3.6 Dialogue 1
- •Jobs in Accounting
- •Supporting Materials
- •Read and translate the following dialogue: Tax Accounting
- •Supporting Materials
- •A Brief Summary of the Activities of the Office of the Auditor General in Norway
- •3.7. Case study& role play Case
- •Discussion questions:
- •Exhibit 1 Sales of the Microcomtec 100
- •Exhibit 2 Microcomtec’s Balance Sheet as of December 2000
- •Discussion questions:
- •Interoffice Memorandum
- •Making a Decision
- •3.8 Grammar back up The Infinitive, Past Participle and the “-ing” form (Revision)
- •Infinitive or the ing-form
- •Infinitive or the ing-form
- •Topics for the Power Point presentations
3.5 Practice
Language focus
Word Building
Complete the table with words from the text and related forms. Put a stress mark in front of the stressed syllable.
Verb |
Concrete and abstract noun |
Nouns for people and organizations |
Adjectives |
Negative adjectives |
account (for) |
accounting |
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consistent |
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investment |
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measure |
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organized |
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unmanageable |
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controlling |
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profit |
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3.5.2 A. Read the text, ignoring the missing parts. Accounting Assumptions and Principles
Accounting principles are built on a foundation of a number of basic concepts. One of them is known as the consistency principle. Companies can choose their accounting policies – … (1)… . But in choosing accounting policies they have to be consistent – which means using the same methods every year, unless there is a good reason to change a policy. The policies have to be disclosed to the shareholders in the “Statement of Accounting Policies” included in the Annual Report.
The historical cost principle states that companies …(2)… and not their (estimated) current selling price or replacement cost. The current price is not important if the business is a going concern – a successful company that will continue to do business – as its assets are not going to be sold, or …(3)… . Some countries with regular high inflation use replacement cost accounting, which values all assets at their current replacement cost – the amount that would have to be paid to replace them now.
Other accounting principles are as follows. The full-disclosure principle states that … (4)…. The principle of materiality says that very small and unimportant amounts do not need to be shown. The principle of conservatism (prudence) is that …(5)…, you choose the one that is least likely to overstate or over-estimate assets or income. The objectivity principle says that accounts should be based on facts and not on personal opinions or feelings. The revenue recognition principle is that revenue is recognized in the accounting period in which it is earned. This means the revenue is recorded … (6)…, not when they are paid for. The matching principle states that each cost or expense related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn.
b. Fit the missing parts A-H in the gaps. There is one extra.
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A
compare profits with those of previous years
B
financial reporting must include all significant information
C
do not currently need to be replaced
D
where different accounting methods are possible
E
record the original purchase price of assets
F
when a service is provided or goods delivered
G
their way of doing their accounts
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4 |
5 |
6 |
G |
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c. When writing accounts and financial statements, accountants have to follow a number of assumptions, principles and conventions. The following are the main assumptions used by accountants. Match them with their definitions.
1. |
Separate (business) entity |
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a business will continue into the future |
2. |
Time-period |
b. |
all financial transactions are in a single monetary unit or currency. |
3. |
Continuity or going concern |
c. |
a business is an accounting unit separate from its owners, creditors, managers and their assets. |
4. |
Unit-of-measure |
d. |
the economic life of the business can be divided into (artificial) time periods such as the financial year, or a quarter of it. |
d. Find words or word combinations in the text that mean the following.
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a rule or an idea used for preparing accounts in a particular country or place |
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when a company uses the same accounting methods each year when it reports its results |
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the price paid for an asset when it was bought, rather than what it is worth now |
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cost of buying an asset rather than the price that was paid for it in the past |
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a business that is operating and making a profit and will continue to do so |
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a rapid rise in prices that damages a country’s economy |
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the duty of someone in a professional position to inform customers, shareholders etc about the facts that will influence their decisions |
Skills Focus