7. Match the two parts of the sentences

1. All fixed assets can appreciate if there is high inflation,

2. Accelerated depreciation allows companies to

3. Fixed assets generally lose value, except for land,

4. The straight-line method of depreciation

5. Accelerated depreciation reduces companies’ tax bills,

1. which usually appreciates.

2. charges equal amounts against profits every year.

3. remove some extremely valuable assets from their balance sheets.

4. which encourages them to invest in new factories, etc.

5. but historical cost accounting ignores this.

8. Give extensive answers to the following questions

Are companies in your country allowed to record huge assets, such as their headquarters, as having zero value on their balance sheets? Is this a good idea?

9. Test your English

Replace the words in brackets in each of the following sentences with a phrasal verb of similar meaning. Choose from the following and make any necessary changes

carry on catch on clear up close off draw up go over

look up sell off set aside set out turn out write off

1. As the machine had no scrap value, they simply (recorded as worthless) wrote it off.

2. The methods used for depreciating the fixed assets should be (displayed)___________ in the notes at the end.

3. Despite massive losses this year, the firm intends to (continue) ___________trading.

4. They found the true value of the land when the firm had to (dispose of) ____________it___________.

5. We think it is best to (keep available)______________money each year for future investment in new equipment.

6. The estimated life of the assets (proved)___________to be very accurate.

7. If you cannot remember the formula for the reducing balance method of depreciation, (find in book)____________it ___________.

8. It’s good idea to (consider)_____________the different ways of depreciating assets before deciding on one particular method.

9. After disposal of the asset you can (finish)____________the account.

10. The surplus or deficiency is transferred when you (prepare) ____________ the Profit and Loss Account.

11. The sum of the year’s digits method of depreciation is beginning to (become popular)__________in Europe now.

12. A change in the method of depreciation should (solve)_________ the problem of allocating costs.

Key: 32 Depreciating: phrasal verbs

Теxt 2.6 auditing

1. Practice the pronunciation of the following words

auditor, comply, procedures, adequate, sufficient, opinion, examine, mentioned, actually, genuine, until, irregularities, adequate, employees, compliance, accurate, recommend, external, whether, annual, strategy, restructuring, qualified.

2. Read and memorize the following words and word-combinations

   • to evaluate the accuracy – оцінювати точність

   • to check for errors – перевіряти на помилки

   • to comply with - поступатися; погоджуватися

   • regulations – інструкції; положення; правила

   • related to - пов'язаний

   • adequate – достатній

   • sufficient - достатній

   • to submit financial statements - подавати на розгляд фінансові звіти

   • genuine - справжній, істинний, непідроблений

   • the annual stocktake – щорічна інвентарізація

   • the count of the inventory – підрахунок інвентаря

   • irregularities – недотримання правил; відхилення

   • consistently – послідовно; відповідно

   • management letter - (доповідна) записка для керівництва

   • true and fair view - правдива і чесна картина

   • complete - закінчувати, завершувати