Unit 6* Accounting

1. Read this article from the CNN Money website and complete it with the words listed.

stocked              liability              niche              matters              related

assessment              outpaces              protection              succumbed

loss              restate              methodology

Kmart May Restate Results

New York (CNN/Money) — Kmart Corp.

The Troy, Mich.-based discount retailer, which filed for bankruptcy... (2) in January, said the delay in filing its 10-K annual report with the Securities and Exchange Commission will give its new management team time to complete an ... (3) of the company’s accounting policies and methods.

Kmart said it may restate results for last year due to a possible change in accounting ... (4) as well as a previously announced investigation concerning various accounting... (5).

The restated results could include a ... (6) “significantly higher” than the $ 244 million loss it reported for the fiscal year ended Jan. 31, the company said.

Kmart spokesman Jack Ferry said the accounting issues are ... (7) to an internal and SEC investigation into vendor contracts and general ... (8) reserves.

Kmart, which was the nation’s No. 3 retailer in terms of sales last year,...

9. to competition from Wal-Mart, the world’s biggest company, and Target Corp., another discount chain.

Sloppy, poorly ... (10) stores, many of which were in need of renovation, drove consumers to other retailers, particularly Wal-Mart, which far ... (11) the industry in everyday low prices, and Target, which grabbed a slightly more upscale ... (12) with its high fashions at low prices, analysts have said.

Many on Wall Street blamed Kmart’s ultimate fall in part on Chuck Conaway, the former CEO hired two years ago to turn the chain around and who tried going head-to-head with Wal-Mart on price, something no retailer has been able to do.

2. After filling in the gaps read the article once more and decide which of the statements are True and which are False and write T for True and F for False.

1. The Troy delayed filing its annual report because it was not satisfied with the assessment of its accountants.
2. Kmart decided to change its accounting methodology.
3. The loss in the restated results for last year will be much higher.
4. Vendor contracts and general liability reserves are being investigated at the moment.
5. Kmart won the competition with Wal-Mart.

3. Give English equivalents and make up your own sentences:

• дебиторская задолженность, не оплаченная в срок;
• списывать полностью;
• счет прибылей и убытков;
• отчет о доходах;
• итоговая строка счета прибылей и убытков в годовом отчете.

4. Translate the following sentences into Russian.

1. We send a reminder to customers who haven’t settled their accounts.
2. The company has a weekly payroll of about $100,000.
3. Buying that machinery has seriously depleted our reserves.
4. The rent for the office is already 3 months overdue.
5. Such items as buildings and machinery are known as fixed assets.

5. Render the extract from the article using the active vocabulary.

Продолжавшаяся четыре месяца аудиторская проверка показала, что активы «Газпрома» действительно уходили на сторону, но при этом, поданным московской инвестиционной компании «Объединенная Финансовая Группа», не было нарушено никаких законов. Среди клиентов ОФГ есть акционеры «Газпрома», представленные в совете директоров.

«Подтвердились многие подозрения акционеров», — заявил Борис Федоров, представитель интересов миноритарных акционеров в совете директоров, отметив, что «это не является стопроцентной открытой борьбой, когда все нарушения немедленно исправляются».

«Хотя некоторые улучшения произойдут, нам придется проводить анализ конкретных действий на долгосрочный период», — сказал Федоров.

Аудиторы сказали, что им не была предоставлена информация, дающая возможность ответить на главный вопрос: получают ли руководители выгоду за счет активов «Итеры».

Часть ущерба, выявленного в ходе проверки, можно возместить. В отчете говорится, каким образом «Газпром» может вернуть себе контроль над сибирской газодобывающей компанией «Пургаз», проданной по дешевке «Итере» в 1999 г.