VII. Using Table 3 determine what is recorded in the company’s statement of cash flows.

VIII. Check your grammar.

Fill in the gaps with necessary prepositions.

between to in from under without for of

1. A statement of cash flows is different … an income statement.

2. Cash is paid … shareowners as dividends.

3. The difference … cash and net income is obvious.

4. An expense may be recorded … an actual cash payment.

5. When a customer pays … merchandise or promises to pay the company … the future, revenue is recorded.

6. A balance sheet consists … three major sections.

7. The resources that are … a company’s control are described in a balance sheet.

IX. Read the text and say what consolidated statements reflect and include. Consolidated Statements.

Most large corporations in the United States and other industrialized countries own other corporations. Their primary financial statements are consolidated statements, reflecting the total assets, liabilities, owners’ equity, net income, and cash flows of all the corporations in the group. Thus, for example, the consolidated balance sheet of the parent corporation¹ (the corporation that owns the others) does not list its investments in its subsidiaries² (the companies it owns) as assets; instead, it includes their assets and liabilities with its own.

Some subsidiary corporations are not wholly owned by the parent; that is, some shares of their common stock are owned by others. The equity of these minority³ shareholders in the subsidiary companies is shown separately on the balance sheet.

NOTES

1. parent corporation – материнская корпорация

2. subsidiaries – дочерние корпорации

3. minority – меньшинство

X. Translate the text in the written form. Disclosure1 and auditing requirements.

A corporation’s obligations to issue financial statements are prescribed in the company’s own statutes or bylaws² and in public laws and regulations. The financial statements of most large and medium-size companies in the United States fall primarily within the jurisdiction of the federal Securities and Exchange Commission (SEC)³.

A company’s financial statements are ordinarily prepared initially by its own accountants. Outsiders review, or audit⁴, the statements and the systems the company used to accumulate the data from which the statements were prepared. In most countries, including the United States, these outside auditors are selected by the company’s shareholders. The audit of a company’s statements is ordinarily performed by professionally qualified, independent accountants.

NOTES

1. disclosure - 1) представление компанией сведений о своей деятельности

2) раскрытие, разглашение

2. bylaws – уставные нормы, постановления местной власти

3. Securities and Exchange Commission (SEC) – Комиссия по ценным бумагам и биржевым операциям

4. audit – 1) проверка, ревизия;

2) заключение аудитора по финансовому отчету