"вч D. Vocabulary

4. l. Learn the vocabulary and make up your own sentences, volatile (adj) — of a quickly changing, undependable nature, especially easily becoming dangerous

keep up with (phr v) — to prevent something from falling to a lower level

choke off (phr v) — to stop, get rid of, or prevent market value — how much people would be willing to pay for something, rather than a value calculated as a summary of costs

historic cost — the price paid for an asset when it was bought, rather than what it is worth now

shareholder’s equity — the difference between the value of a company’s assets and its liabilities other than those to shareholders.

swing (v) — to change from one level, rate, or position to another so that a situation is the opposite of what it was before

arrive at (phr v) — to reach, especially after much effort or thought; come to

pro-forma (adj) — pro-forma figures, results, etc. which are not complete or final, but show what is expected to happen

reconcile (v) — to make two accounts or statements agree or add up to the same total

off-balance sheet — off-balance sheet items, activities, debts, etc. are ones that a company does not show on its balance sheet, but in notes added to it

stock option — an option to buy shares at a particular price. The pay of a company’s top managers often includes stock options in the company they work for

litigious (adj) — too willing to take complaints to a court of law book value — the value of an asset or group of assets in a company’s accounts, not necessarily the amount they could be sold for fiddle (v) — to prepare (accounts) dishonestly to one’s own advantage profit-and-loss account — a financial statement showing the financial results of a company’s normal activities for a particular period of time, usually the financial year

fair value — the value of a business’s assets based on the amount of money that could probably be obtained if they were sold

D.2.

• мошенничать, совершать махинации;
• первоначальная стоимость актива;
• обоснованная стоимость;
• неустойчивый;
• балансовая стоимость активов;
• соблюдать, придерживаться;
• счет прибылей и убытков;
• достигать;
• акционерный капитал;
• устранить;
• предварительный;
• подлежащий судебному разбирательству;
• колебаться;
• фондовый опцион;
• рыночная стоимость;
• согласовывать;
• внебалансовый отчет.

4. 3. Choose an appropriate word or expression from the box to complete the following sentences.

pro-forma choke off reconcile

fiddling volatile keep up with

market values swing

1. In the 1990s, accountants were not able to ... the tricks that were thought out to help companies inflate their profits.
2. Accounts need to be more ... and less precise to reflect reality.
3. Those who set accounting rules thought it was very important to ... the most obvious loopholes.
4. The growing use of... for assets and liabilities is going to make shareholders’ equity and profits ... around far more than in the past.
5. Companies used to report huge profits in their... earnings statements.
6. Companies have to show how they ... their pro-forma figures with the numbers produced according to GAAP rules.
7. To value more of their assets and liabilities at market prices will help stop executives from ... their accounts.

4. 4. Give synonyms for the italicized words in each sentence below, or briefly explain their meaning.

1. The procession of companies admitting to having lied in their reported accounts has undermined faith in corporate numbers and put the accounting profession under pressure to change its ways.
2. This may sound worryingly uncertain, but it might be better than trying to rely on a brittle illusion of accounting exactitude, which is liable to collapse during times of economic strain.
3. Accounting principles were shamelessly abused in the years of the stockmarket bubble.
4. The standard-setters may yet have a fight on their hands.
5. This is the vexed issue of when precisely to include revenue in the accounts—for example, when an order is made, when it is shipped, or when payment is received.
6. As share prices soared, people pointed to the growing gap between the book value of companies and their market capitalization as evidence of the irrelevance of accounts.
7. The way to make them more relevant is, standard-setters believe, to force companies to mark more of their assets and liabilities to market.