Бизнес-планирование. Учебник для бакалавров

Many factors are involved in any estimate of human life. | In my estimation the boy is innocent.

European Anti-Fraud ­Office, the abbrev. OLAF Fr.: Office européen de lute antifraud a body mandated by the Eu- ropean Union (EU) with pro- tecting the Union’s financial interests

Commentary

OLAF was founded on 28

April 1999 under the Euro- pean Commission Decision

1999/352. Its tasks are three- fold:

— to fight fraud affecting the EU budget;

— to investigate corruption by staff of EU institutions, and

— to develop anti-fraud legis- lation and policies.

OLAF achieves its mission by conducting, in full independence, internal and external investigations. It coordinates the activities of the anti-fraud partners in the member states in the fight against fraud.

European Court of Auditors, the abbrev. ECA, the one of the seven institutions of the European Union (EU) estab- lished in 1975 in Luxembourg in order to improve the EU fi- nancial management

Commentary

Despite its name, the ECA has no jurisdictional functions. It is rather a professional exter- nal investigatory audit agency. The primary role of the ECA is to externally check if the bud- get of the European Union has been implemented correctly, whether the EU funds have been spent legally and with sound management. In doing so, the ECA checks the paper- work of all persons handling any income or expenditure of the European Union and car- ries out spot checks. The ECA is bound to inform about any problems in its reports for the attention of the EU’s member states and institutions. These

reports include its general and specific annual reports, as well as special reports on its performance audits. The

ECA’s decision is the basis for the European Commission de- cisions. If the ECA finds prob- lems in the management of the EU funds, the European Commission suspends funds and is prepared to fine those who do not return to acceptable standards. The ECA is composed of one member from the EU member states, each of whom is appointed unanimously by the Council of the European

Union for a renewable term of six years. The ECA is support- ed by a staff of approximately

800 auditors, translators, and administrators recruited as part of the European Civil Service. Auditors are divided into auditor groups which inspect and prepare draft reports for the ECA to take decisions upon. Inspections take place not only of the EU institutions but of any state which receives the EU funds, given that 90% of income and ex- penditure is managed by national authorities rather than the EU. Upon finding a fault, the ECA — possessing no legal powers of its own — informs

the European Anti-Fraud Of- fice (OLAF) which is the EU’s anti-fraud agency.

evaluator n an authority who is able to estimate worth or quality

examiner n an investigator who observes carefully: The examiner searched for clues.

Executive Office of the Presi- dent, the AmE ­abbrev. EOP AmE it consists of the imme- diate staff to the President, along with entities such as the Office of Management and Budget and the Office of the United States Trade Represen- tative.

expenditure(s) n sing. & pl.

1) money paid out; an amount spent; syn.: outgo, outlay, spending; 2) the act of spending money for goods or servic- es; syn.: disbursal, disbursement, expending, outlay, spending;

3) the act of consuming something

a purpose: an expense of time and energy on the project;

b/ a loss for the sake of some- thing gained; a sacrifice: achieved speed at the expense of accuracy;

2) an expenditure of money; a cost: an improvement that was well worth the expense; a trip with all expenses paid; 3) expenses;

a/ charges incurred by an employee in the performance of work: She was reimbursed for her travel expenses.;

b/ infml money allotted for payment of such charges;

4) something requiring the expenditure of money: Redec- orating the house will be a con- siderable expense.;

5) arch. the act of expending

expert n syn.: analyst a per- son with special knowledge or ability who performs skillfully

exposure n the act of ­exposing or the condition of being exposed

external audit(ing) noun phrase syn.: independent audit; outside audit an ex- amination of a company’s re- cords and reports by an out- side party; a measurement and report on the state of a person’s or firm’s finances, made by an external agency.

A common (and feared) ex- ample of an outside audit is an audit by the IRS, which is done to ensure that the person or business being audited has paid the appropriate amount in taxes. Companies often hire audit firms to look at their fi- nancial states and to receive an objective assessment.

external auditor n It is an audit professional who performs an audit on the financial state- ments of a company, govern- ment, individual, or any other legal entity or organization, and who is independent of the entity being audited

Commentary

Users of the entity’s financial information, such as investors, government agencies, and the general public, rely on the external auditor to present an unbiased and independent evaluation on such entities. They are distinguished from internal auditors for two main reasons: (1) the internal au- ditor’s primary responsibil- ity is appraising an entity’s risk management strategy and practices, management (including IT) control frame- works and governance pro- cesses, and (2) they do not

express an opinion on the en- tity’s financial statements.

The primary role of external auditors is to express an opin- ion on whether an entity’s financial statements are free of material misstatements. Normally, external auditors review the entity’s informa- tion technology control procedures when assessing its overall internal controls. They must also investigate any material issues raised by inquiries from professional or regulatory authorities, such as the local taxing authority. For public companies in the United States, the Sarbanes-Oxley Act (SOX) has imposed stringent requirements on external auditors in their evaluation of

internal controls and financial reporting.

The independence of external auditors is crucial to a correct and thorough appraisal of an entity’s financial controls and statements. Any relationship between the external auditors and the entity, other than retention for the audit itself, must be disclosed in the exter- nal auditor’s reports.

ex-warrants n pl. abbrev. xw a type of stock sale in which the buyer is not entitled to the warrant accompanying the stock.

EY abbrev. Vid Ernst & Young

Global Limited

FA abbrev. Vid financial audit noun phrase

FASB ­abbrev. AmE Vid Financial Accounting Standards Board , the AmE

faultless [perfect; sound] audit noun phrase an audit re- port having no mistakes

faulty [defective; imperfect; unsound] audit noun phrase an audit report not made properly

FCA ­abbrev. Vid full [true] cost accounting noun phrase

FCIC abbrev. Vid Financial ­Crisis Inquiry Commission, the

FEI abbrev. AmE Vid Financial Executives Institute AmE

FEI ­abbrev. AmE Vid Financial Executives International AmE

field audit, a. investigative audit noun phrases an inperson interview and review of the taxpayer’s records that is usually conducted by the In- ternal Revenue Service (IRS) at the taxpayer’s home, place of business, or accountants’ office

Usage Note

The term is used because from the IRS perspective the audit is conducted “out in the field” as opposed to their office.

Financial Accounting Standards­ Board, the AmE abbrev. FASB, the AmE a pri- vate, not-for-profit organiza- tion whose primary purpose is to develop generally accepted accounting principles (GAAP) within the United States in the public’s interest

Commentary

The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the US. It was created in 1973, replac- ing the Accounting Principles Board and the Committee on Accounting Procedure of the American Institute of Certi- fied Public Accountants. The FASB’s mission is to establish and improve standards of fi- nancial accounting and reporting for the guidance and education of the public, including issuers, auditors, and users of financial information. The FASB is not a governmen- tal body. The SEC has statutory authority to establish financial accounting and re- porting standards for publicly held companies under the Se- curities Exchange Act of 1934.

Throughout its history, how- ever, the Commission’s policy has been to rely on the private sector for this function to the extent that the private sector demonstrates ability to fulfill the responsibility in the public interest.

The FASB is part of a struc- ture that is independent of

all other business and profes- sional organizations. Before the present structure was created, financial accounting and reporting standards were established first by the Com- mittee on Accounting Procedure of the American Institute of Certified Public Accoun- tants (1936–1959) and then by the Accounting Principles

Board, also a part of the AIC- PA (1959–1973). Pronounce- ments of those predecessor bodies remain in force unless amended or superseded by the FASB.

The FASB is subject to over- sight by the Financial Accounting Foundation (FAF), which selects the members of the FASB and GASB and funds both organizations. The Board of Trustees of the FAF, in turn, is selected in part by a group of organizations.

financial analyst, a. securities analyst noun phrases an ana- lyst who studies the financial performance of corporations

financial audit noun phrase abbrev. FA an attestation that the client’s financial state- ment is accurate

financial auditives noun phrase us. pl. they include taxation, misselling, and other forms of fraud; their purpose is to misstate financial infor- mation auditing.

Financial Crisis Inquiry Commission, the AmE abbrev. FCIC AmE it was a ten-mem- ber commission appointed by the leaders of the United States Congress with the goal of investigating the causes of the financial crisis of 2007– 2010; it was nicknamed the

Angelides Commission after the chairman, Phil Angelides. The commission was created by section 5 of the Fraud En- forcement and Recovery Act of 2009 (Public Law 111–21), signed into law by President

Barack Obama on May 20,

2009.

Financial Executives Institute

AmE abbrev. FEI AmE a trade association which changed its namein2000—fromFinancial

Executives Institute to Finan- cial Executives International; it was set up to better prepare the association to respond to the increasing globalization of financial reporting standards, as well as the international- ization of business operations.

Financial Executives International AmE abbrev. FEI AmE Vid Financial Executives Institute AmE

financial [financing] perfor- mance noun phrase a com- pany’s ability to generate new resources, from day-to-day operations over a given period of time

financial position [situation; stance; status] noun phrase syn.: credit [financial] standing the reputation of a person or organization with regard to capability and promptness in meeting finan- cial obligations

Financial Reporting Council, the BrE abbrev­ . FRG, the BrE an independent regulator in the UK and Ireland, responsible for regulating auditors, accountants, and actuaries, and setting the UK’s Corporate

Governance and Stewardship

Codes

Commentary

The FRG was established in 1990. It seeks to promote transparency and integrity in business by aiming its work at investors and others who rely on company reports, audits, and high-quality risk manage-

ment. In December 2018, an independent review of the

FRG, led by Sir John Kingman, recommended its replacement by the new Audit,Reporting and Governance Authority

(ARGA), a recommendation followed by the government in March 2019.However, full implementation reform proposals relating to the audit sector are expected in 2023.

financial statement(s) noun phrase sing. & pl. 1) a formal report prepared from accounting records describing the financial position and perfor- mance of the business;

2) AmE a document showing credits and debits

fiscal year-end noun phrase it refers to the completion of a one-year, or 12-month ac- counting period; if a company has a fiscal year-end that is the same as the calendar year- end, it means that the fiscal year ends on December 31.

flack, a. flak n AmE infml some- one whose job is to represent an organization and answer questions about it, esp. when something bad has happened

forensic accounting, a. foren- sic accountancy, or finan- cial forensics noun phrases the specialty practice area of accounting that investigates whether firms engage in fi- nancial reporting misconduct

forensic audit noun phrase it refers to an investigative audit in which accountants special- ized on both accounting and investigation seek to uncover frauds, missing money, and negligence.

forfeit n 1) something lost or given up as a penalty for a fault, mistake, etc.;

2) the act of losing or surren- dering something in this man- ner;

3) L something confiscated as a penalty for an offence, breach of contract, etc.

forfeit v 1) to lose or be liable to lose in consequence of a mistake, fault, etc.;

2) L a/ to confiscate as pun- ishment;

b/ to surrender (something exacted as a penalty)

FRG, the abbrev­ . BrE Vid Fi- nancial Reporting Council, the BrE

full cost noun phrase total of all direct and indirect costs

full [true] cost accounting noun phrase ­abbrev. FCA the process of collecting and presenting information (costs as well as advantages) for each proposed alternative when a decision is necessary; it is a conventional method of cost accounting that traces direct costs and allocates indirect costs

fund(s) n sing. & pl. 1) a source of supply; a stock: a fund of goodwill;

2) a/ a sum of money or other resources, a reserve of money, etc., set aside for a specific purpose: a pension fund;

b/ pl. available money; ready cash: short on funds;

3) pl. the stock of the ­British permanent national debt, con- sidered as public securities; used with “the”;

4) an organization established to administer and manage a sum of money

fund v 1) to provide money for paying off the interest or prin- cipal of (a debt);

2) to convert into a long-term or floating debt with fixed in- terest payments;

3) to place in a fund for accumulation;­

4) to furnish a fund for: They funded the space program.;

5) to convert (short-term floating debt) into long-term debt bearing fixed interest and represented by bonds; 6) to provide a fund for the re- demption of principal or pay- ment of interest of;

7) to accumulate a fund for the discharge of (a recurrent liability): to fund a pension plan;

8) to invest (money) in gov- ernment securities; Vid a. funds n pl.

GAAFR, the

Gg

GAAFR, the abbrev.Vid Governmental Accounting, Audit- ing, and Financial Reporting, a.k.a. Blue Book,the

GAAP abbrev. AmE Vid Generally Accepted Accounting Principles AmE

GAAS abbrev. AmE Vid Generally Accepted Auditing Standards AmE

GAGAS abbrev. AmE Vid Generally Accepted Government Auditing Standards AmE

gain(s) sing. & pl. 1) FIN a prof- it or an increase in value of an investment such as a stock or bond; 2) ACCT a change in the value of an asset (increase) or liability (decrease) resulting from something other than the earnings process.

Commentary

Gain is calculated by fair market value or the proceeds from the sale of the investment minus the sum of the purchase price and all costs associated with it. If the investment is not converted into cash or another asset, the gain is then called an unrealized­

gain. While gains are often associated with investments, de- rivatives and other financial instruments, they can also result from something as simple as selling a production asset (such as a machine) for more than its net book (accounting) value.

As such, gains are similar to, but nonetheless significantly different from, revenues. The difference lies in the existence of intent to earn a profit.

Thus, revenues result from the intentional producing and de-