Text 4 The Development of Accounting Thought

Accounting has a long history. Some scholars claim that writing arose in order to record accounting information. Account records date back to the ancient civilizations of China, Babylonia, Greece, and Egypt, The rulers of these civilizations used accounting to keep track of the cost of labour and materials used in building structures like the great pyramids.

Accounting developed further as a result of the information needs of merchants in the city-states of Italy during the 1400s. In that commercial climate the monk Luca Pacioli, a mathematician and friend of Leonardo da Vinci, published the first known description of double-entry bookkeeping in 1494.

The pace of accounting development increased during the In­dustrial Revolution as the economies of developed countries began to mass-produce goods. Until that time, merchandise had been priced based on managers hunches about cost, but increased com­petition required merchants to adopt more sophisticated account­ing systems.

In the nineteenth century, the growth of corporations, espe­cially those in the railroad and steel industries, spurred the devel­opment of accounting. Corporation owners — the stockholders — were no longer necessarily the managers of their business. Man­agers had to create accounting systems to report to the owners how well their businesses were doing.

The role of government has led to still more accounting devel­opments. When the federal government started the income tax, ac­counting supplied the concept of «income». Also, government at all levels has assumed expanded roles in health, education, labour, and economic planning. To ensure that the information that it uses to make decisions is reliable, the government has required strict accountability in the business community.

Кратко перескажите текст на английском языке.

Unit 15

BRITAIN'S BANKING AND FINANCIAL INSTITUTIONS

Active vocabulary

to lend – давать взаймы

insurance – страхование

stock exchange – фондовая биржа

turnover of money – оборачиваемость денег

leasing – лизинг, долгосрочная аренда

to bring into line – приводить в соответствие

deal, dealing - сделка

debt – долг

retail market – розничный рынок

wholesale – оптовый

cash – наличные деньги

withdrawal – снятие со счета

mortgage – залог

securities – ценные бумаги

fixed interest – фиксированная процентная ставка

assets – активы

Text 1 Britain's Banking and Financial Institutions

Britain is the world's leading financial centre and the home of international banking and financial markets. The city of London holds the greatest concentration of banks in the world and is responsible for about a fifth of total international bank lending. It also accommodates the world's largest insurance and reinsurance industry and one of the world's largest stock exchanges.

The daily turnover of money in London's Foreign exchange Markets alone is about $303 billion compared to $192 billion in New York and $128 billion in Tokyo.

Over the last Britain's income from banking, financial and business services, life and general insurance, investment management and leasing has risen sharply, accounting for some 14 per cent in 1990.

During the 1980s — a decade marked by unprecedented growth, financial institutions entered a new and challenging era. Reforms also brought specific areas of service into line with other Member States in the European Union. Major retail banks serving the personal and commercial sectors have extended and improved their product and service range. The interests of individual investors have been protected and financial service institutions have submitted to guidelines.

Britain's leading position owes much to the traditionalism of the City and Port of London as a centre for trade; also to the City's responsiveness to new challenges. The City offers:

The world's biggest international financial markets.

A time-zone advantage in 24-hour global dealings.

Comprehensive financial expertise and innovation.

International professional advisers.

Liberal financial regulations.

Worldwide communications.

A stable political climate.

A compact location with first rate amenities (and new, prime office developments in nearby Docklands).

World-class cultural entertainment.

Прочитайте и устно переведите со словарем весь текст. Письменно переведите II, III абзац.

Найдите в тексте и запишите ответы на следующие во­просы.

1. How did banking reforms taken in the 1980 affect retail banks?

2. What place do London Foreign Exchange Markets take as compared to stock exchanges in other countries?

Text 2

Banking and Finance

Banking and financial market operations in Britain involve a number of special institutions and financial markets. Many banking and financial institutions are unique to Britain and offer highly specialized services to individuals, companies and sovereign bodies all over the world.

The Bank of England

The Bank of England in the heart of the City of London is Britain's central bank. It is banker to the commercial banks and to the Government; manager of the National Debt; regulator of monetary and credit conditions; and not least supervisor of the banking system.

Commercial Banks

This is the broad title for institutions authorized under the Banking Act 1987 as deposit-taking institutions involved in the classic banking business of tailing deposits and lending money, both in the retail and wholesale markets. In Britain, they include the retail banks and institutions which offer banking services.

Retail Banks

Retail banks primarily serve individuals and small to medium-sized businesses. The major retail banks operate through more than 12,148 branches offering cash deposit and withdrawal facilities and systems for transferring funds.

Building Societies

Building societies started in the late 18th century to pool money to build houses and to buy land. They currently compete with the retail banks to attract savings from and provide mortgage finance for the personal sector. Today, they hold more savings than the other deposit-taking institutions.

International Banks

In March 1994, there were 255 branches of foreign banks in Britain. The majority are based in London, including Moscow Narodny Bank, Bank of China and 38 Japanese banks. Citibank of the US is the largest of the 42 banks from the US based in Britain.

Merchant Banks

Merchant Banks are so called because they originate from large merchants engaging in banking activity. But they are today involved in a range of activities including corporate finance, foreign exchange dealings and securities trading.

National Savings

National Savings aids government borrowing via a range of savings instruments. These include fixed interest and indexlinked Savings Certificates, First Option Bonds and Premium Bonds among others.

Discount Houses

The discount houses are unique to Britain and occupy a central position in the British monetary system. They act as intermediaries between the Bank of England and the rest of the banking sector.

Investing Institutions

The investing institutions collect savings drawn from the personal sector and invest them in securities and other assets. The main investment institutions are insurance companies, pension funds, unit trusts and investment trusts.

Пояснения к тексту.

Bank of England — Банк Англии (Центральный банк Вели­кобритании);

Commercial bank — коммерческий банк;

Retail bank — розничный банк (банк, занимающийся об­служиванием мелкой клиентуры);

Merchant Bank — торговый банк;

National Savings — национальный сберегательный банк;

Discount House — учетный банк;

Premium bond — облигация выигрышного займа;

Option bond — облигация с правом досрочного погашения;

Building society — жилищно-строительный кооператив, выполняющий функции сберегательного учреждения: прием вкладов и выдача ссуд на приобретение домов;

International bank — международный банк.

Ответьте на вопросы к тексту.

1. How do we call Britain's central bank?

2. What functions has the Bank of England?

3. What banks do commercial banks include?

4. Do retail banks serve individuals?

5. What do you know about building societies?

6. What activities are Merchant Banks involved in?

7. What banks are unique to Britain? Why?

8. What Investing institutions do you know?

Кратко на английском языке охарактеризуйте банковскую систему Британии (10-12 предложений).

Используя активный словарь, переведите текст с русского на английский язык.