1.Read and translate the text: ethical behaviour of accountants

Several accounting organizations have formulated codes of eth­ics that govern the behaviour of their members. “Code of Profes­sional Conduct” adopted by the American Institute of Certified Pub­lic Accountants reads:

“Membership in the American Institute of Certified Public Account­ants is voluntary. By accepting membership, a certified public accountant assumes an obligation of self-discipline above and beyond the require­ments of laws and regulations...”

In carrying out their responsibilities as professionals, members should exercise sensitive professional and moral judgments in all their activities.

Members should accept the obligation to act in a way that will serve the public interest, honour the public trust, and demonstrate commitment to professionalism.

A member should observe the profession’s technical and ethical standards, strive continually to improve competence and the quality of services, and discharge professional responsibility to the best of the member’s ability.

To maintain and broaden public confidence, members should perform all professional responsibilities with the highest sense of integrity.

A member should maintain objectivity and be free of conflicts of interest in discharging professional responsibilities. A member in public practice should be independent in fact and appearance when providing auditing and other attestation services.

Some business firms have also developed codes of ethics for their employees to follow. But there is something more than merely making sure you are not violating a code of ethics. Most of us sense what is right and wrong. An accountant’s most valuable asset is his or her reputation.

Notes to the text:

code of ethics - моральный кодекс, моральний кодекс

assume - принимать, приймати

moral judgment - этические суждения, етичні міркування

commitment - преданность, відданість

observe standards – соблюдать стандарты, додержуватися стандартів

broaden public confidence – укреплять доверие общественности, поширювати довіру суспільства

be independent in fact and appearance – быть независимым по сути и существу, бути незалежним за фактом і насправді

2.Answer the questions:

1. Who formulated codes of ethics?

2. What does codes of ethics govern?

3. What are the main principles of codes of ethics?

4. What do some firms also develop?

TEXT 8

1. Read and translate the text:

Balance sheet

The balance sheet is a statement of the total assets owned at a specified time, the value that the firm owes to others, and the value that is clear of debt. It is basically a statement of the accounting equation: assets equal liabilities plus equity.

All asset accounts are listed as shown on the trial balance, with any accumulated depreciation taking from the value of the asset. Usually, assets that can be readily converted into cash known as current assets, are shown first.

All liability accounts are also recorded. The equity section states the owners’ investment as shown in the proprietorship or capital account, plus any net income earned. This net income is taken from the income and expense statement and is the excess of the revenue accounts over the expense accounts. If the income and expense statement had resulted in a net loss, this would be deducted from the owners' investment. Any withdrawals made by the owners are deducted since they take from their equity remaining in the firm.

The two sides of the balance sheet are assets and liabilities plus equity. Sometimes a worksheet is used to plan the adjusting entries the income and expense statement and the balance sheet.

Notes to the text:

balance sheet - балансовый отчет, балансовий звіт

total assets owned - общие собственные активы, загальна вартість майна

clear of debt - без долгов, не маючий боргів