2. Answer the questions on the text:

1. What are public accountants?

2. What are private accountants?

3. How do public accountants organize their activities?

4. Who can get a license to practise public accounting?

5. What services do Russian public accountants provide?

3. Find English equivalents for the following Russian phrases from the text:

заниматься чем-либо; предоставлять услуги на платной основе; организовать товарищество; избегать ограниченной ответственности; брать на себя ответственность за свои решения; иметь право выдавать лицензию; удовлетворять требованиям в отношении уровня образования и опыта работы; сдать экзамен; профессиональная репутация; конфиденциальность; поддерживать высокие профессиональные стандарты; аудит; иметь много общего; отличаться в значительной степени; производственный учет; составление смет капитальных расходов; составление смет текущих расходов.

4. Say in a few words what the text is about Use the opening phrases given above.

UNIT 4

Exercises

1. Work on vocabulary and grammar

a) Study the key words in the dictionary:

Balance sheet, account, depreciation, cost, expenses, assets, loss.

b) Think of the words describing characteristics that make information useful.

c) Think of the nouns that are most often used with the following verbs:

to measure, to ensure, to communicate, to prepare, to debit, to credit, to draw up, to disclose, to report.

d) Match the verbs from (1) with the nouns from (2) below:

1) to meet 2) needs

to ensure provision of information

to harmonize standards

to develop performance

to assess service

to provide license

to grant accounting standards

Ex. 2.

a) Supply the articles where necessary.

b) Write down 3-5 questions on the text.

c) Explain what information must be disclosed in the accounting records. Say what you have learned from the text about the UK rules for the preparation of accounting records.

Accounting Records

Every company must keep accounting records sufficient:

- to show and explain ... company's transactions;

- to disclose ... financial position of the company at any time with reasonable accuracy;

- to enable the directors to ensure that... annual accounts comply with ... statutory requirements.

The records may contain entries of daily receipts and payments, ... record of assets and liabilities and, where the business involves dealing in goods, stocktaking records and details of goods bought and sold.

The directors of every company have a duty to prepare annual accounts. The accounts must be made up to .. .company's accounting date (its financial year-end) and in accordance with the specified accounting principles. In ... UK, for example, they include ... following:

- The company is presumed to be ... going concern.

- Accounting policies are applied consistently from ... year to year.

- The amount of any item is determined on ... prudent basis.

- The accounts are prepared on ... accrual basis.

Details of any departure from these principles, the reasons for it, and its effect must be explained in ... note to the accounts.

In ... UK company accounts are almost invariably prepared using the historical cost accounting convention, with or without modification to reflect changes in ... value of certain assets. However, ... Company Act 1985 provides alternative accounting rules which permit company to recognize ... full impact of inflation and changing prices in their accounts. Along with ... rules applying to the preparation of accounts, there is ... overriding requirement that the balance sheet must give ... "true and fair" view of the state of affairs of the company and that... profit and less account must give ... "true and fair" view of the company's profit and loss.

Until 1992, cash basis accounting was ... only method recognized in ... Russia. Although the new accounting regulation permits the administration to select... method of recognized revenue and expenses,... traditional methods is sill dominant.

Words you may need:

accounting records бухгалтерские счета, бухгалтерская отчетность

stocktaking records книга учета запасов

accounting date отчетная дата

accrual basis принцип начислений

departure (зд.) отклонение

Companies Act Закон о компаниях

overriding первостепенный

Ex. 3.

a) Open the brackets putting the verbs in the correct form.

b) Say what is a Chart of Accounts in Russia and what it provides for.

In the West each company (to have) a certain freedom in the design of its own set of accounts so as to reflect the nature of its business and the needs of its management in directing that business. In Russia this process (to regulate) centrally, there (to be) a tradition of using a uniform Chart of Accounts.

The first uniform Chart of Accounts (to appear) in Russia in the 1920s. It (to intend) for industries only and was revised periodically. In 1961 the first national uniform Chart of Accounts (to create) and put into operation. With only insignificant changes, this chart (to use) in accounting practice until 1992. In 1992 transition to a new chart (to make). The current Chart of Accounts (to consist) of about 100 accounts and 60 subaccounts grouped into 10 main sections. All accounts included in this uniform chart (to call) "synthetic" (main or summary) accounts. On the basis of this chart, each enterprise also may create a set of "analytic" (supporting) accounts if needed to supplement the synthetic accounts. The Chart of Accounts can be considered the most important element of the accounting system in Russia because it (to determine) the accounting practice and other elements of the system.

The Chart (to provide) for the following: an interrelated classification, grouping, and generalization of information about business activities of enterprises, a unified methodological basis for the organization of accounting in the whole national economy, an effective system of control of indicators for business activities, comparability of accounting procedures used and information generated in the accounting systems of different enterprises, etc.

Words you may need:

Chart of Accounts план счетов

set of accounts перечень счетов

Ex. 4

a) Fill each gap with a suitable word from the box.

b) Sum up the text in 5-7 sentences and present your summary in class.

c) Name the most important events in the development of the accountancy profession in the world.

accountants principles back profession number role

organized members creation throughout organizations functions

accountancy profession

The organization of the accountancy profession dates __ to January 1853 when eight accountants in Edinburgh, Scotland met for the purpose of seeking recognition of their as a separate and distinct profession. Their discussion of their professional situation resulted in the __ of the Institute of Chartered Accountants of Edinburgh. Since that time numerous professional accountancy organizations have been established __ the world. The process is going on.

In 1977 the International Federation of Accountants (IFAC) was established. Its initial membership was 63 organizations representing 49 countries, but within a decade, the __ grew to 105 organizations from 79 countries. The establishment of the IFAC recognized the need for international coordination of the objectives of professional accountancy organizations and means of achieving those objectives.

Accountancy is an international profession. Under the conditions of global interdependence of countries through trade, finance, and crossborder investments, the __ of the IFAC is becoming more important.

The size and principles of accountancy __ vary. Some organizations comprise accountants working in commerce, industry, and government organizations, as well as in public practice (auditing), others consist solely of members in public practice.

The accountancy profession may be summarized as:

- to protect the public by ensuring the observance by its members of the highest __ of professional and ethical conduct;

- to promote and increase the knowledge, skills, and proficiency of members of the organization and students;

- to preserve the professional independence of __ in whatever capacities they may be serving;

- to maintain the legitimate rights of its __. IFAC was __ in recognition of the growing changes towards inter-nationalization of the world economy, business and trade.

Words you may need:

Institute of Chartered Accountants Институт дипломированных бухгалтеров

proficiency (зд.) опыт

Ex. 5

Read the dialogue, translate the Russian remarks into English and act it out:

Foreigner: As far as I know, in the past the major function of your accountants was to control whether enterprises achieved the plan targets. Has the accounting system changed of late?

Russian: Политика экономических реформ вызвала необходимость создания эффективной системы бухучета. В этом направлении уже проделана большая работа.

F.: What accounting principles is your system based on at present?

R.: Наша система учета основана на системе двойной записи. Учет в основном ведется на основе кассового принципа учета.

F.: Your system seems to be formalized. It is based on the uniform chart of accounts (план счетов) and forms of record keeping and reporting (формы учета и отчетности).

R.: Стремясь способствовать прямым иностранным инвестициям путем создания совместных предприятий, наше правительство поставило задачу внедрения системы учета, сопоставимой с международными стандартами. Была разработана процедура составления ежегодной финансовой отчетности, одобрен план cчетов для совместных предприятий.

F.: It is also important to recognize that the development of accounting in any country is impossible without developing the accounting profession. Is anything being done in this direction?

R.: Да, мы разрабатываем и внедряем новые стандарты, организуем профессиональную подготовку и переподготовку бухгалтеров.

F.: 1 am glad to hear that the full potential of accounting is appreciated in your country now.

UNIT 5