Some leading accounting organisations of great britain

Vocabulary to be memorized

1. Accounting Standards Committee Комітет з бухгалтерських стандартів

2. Auditing Practices Committee Комітет з аудиторської практики

3. Apart from ... окрім

4. appropriate відповідний, appropriate experience відповідний досвід

5. Association of Certified Accountants Асоціація дипломованих бухгалтерів

6. authority повноваження, права, to derive authority одержувати повноваження, права

7. emergence поява, виникнення

8. eventually кінець кінцем, у результаті

9. exceptionally винятково

10. charter грамота, хартія, to grant charter надати хартію, chartered привілейований, дипломований, the Institute of Chartered Accountants Інститут привілейованих (дипломованих) бухгалтерів

11. to imply означати, мати на увазі

12. Consultative Committee of Accounting Bodies Консультативний комітет організацій бухгалтерського обліку

13. The Institute of Cost and Management Accountants Інститут бухгалтерів, зайнятих у сфері виробництва і управління

14. to serve служити, to serve а fixed period of time служити встановлений період часу

15. syllabus програма, examination syllabus програма іспитів

16. separate окремий

17. occupation заняття, професія

18. to qualify навчати, кваліфікувати

19. valuation оцінка, визначення вартості

Read the text to find out what exactly unites 3 Institutes of Chartered Accountants of Great Britain.

Accountancy is an exceptionally old occupation. The emergence of the profession with a code of ethics was followed by the formation of accounting bodies. The oldest professional bodies of accountants were first formed in Edinburgh and Glasgow in the 1850s. In 1854 the Royal Charter was granted to a society of accountants in Scotland. Some years later in 1880, the Institute of Chartered Accountants in England and Wales was formed. Shortly afterwards there were similar activities throughout the English-speaking world and eventually everywhere else. For example, the American Institute of Certified Public Accountants was created in the US in 1887 under the influence of British accounting practices.

At present there are some major organisations for accountants in the UK. Each of these professional bodies has a charter from which its authority is derived. The first three are the Institutes of Chartered Accountants in England and Wales, Scotland and Ireland. These are quite separate from one another. Apart from that, each of these institutes has got its own rules, examination syllabus and students. However there is one important rule that unites them. According to this rule, all student members are to serve a fixed period of time under a training contract with a member of the Institute. Thus they gain the appropriate experience before they qualify. As a rule, chartered accountants work in professional accounting bodies, industry and Commerce.

The fourth body of accountants is the Association of Certified accountants. The members of this Association are found mainly in industry and commerce. A significant number of them can be also bund in practice. The students of this association must undergo a period of training to gain experience before they qualify.

The fifth body of accountants is the Institute of Cost and management Accountants. As the name implies, the members of this organisation are mainly found in industry. So before qualifying they lust gain experience by working in an accounting office in industry.

There is also a Consultative Committee of Accountancy Bodies which coordinates the rulemaking of the profession for its own members. It has two committees. The first one is known as accounting Standards committee. This committee sets the detailed rules of valuation and measurement to be used by accountants when preparing accounts. The other committee is called auditing practices committee. It deals with the standard procedures to be followed by auditors.

Answer the following questions.

1. What was the emergence of the accounting profession followed by?

2. Where were the first professional accounting bodies formed?

3. When was the Institute of Chartered Accountants founded?

4. When did professional accounting bodies appear in the US?

5. What is the authority of all professional organisations of accountants derived from?

6. What is the fourth body of accountants in Britain?

7. What do the students of this association undergo?

8. What sort of institution is the Institute of Cost and Management Accountants?

9. What is the role of the Consultative Committee of Accountancy Bodies?

10. What does the accounting standards committee deal with?

11. Which committee deals with standard procedures to be followed by auditors?