Пойгина Л.Б., Туринова Л.А. - English for Masters. Management Part 2 (Пойгина Л.Б., Туринова Л.А. - English for Masters. Management Part 2.pdf), страница 8

Moreover, many accounting rules allow leeway in recognizing income and charging expenses;thus, the analyst must be on the alert for management's self-serving selection of these alternatives to make itsperformance look better than it is.Financial ConditionIn assessing a business's financial condition, the accountant is concerned with the reporting of assets(what is owned), liabilities (what is owed), and owner's equity (the investment by the stockholder).

There aretwo very important points to note here. The first is that assets are normally recorded at historical cost, themarket value at the time of purchase.The other key point is the concept of liquidity, which refers to the ability to quickly convert an asset tocash (at or near market value) or to how soon a liability will have to be paid in cash. Assets and liabilities arelisted on the balance sheet and on the spreadsheet in descending order of liquidity. If on the one hand aborrower collects its accounts receivable within the 30 days that is standard within its particular industry, thereceivable would be judged quite liquid. On the other hand, if the company's new warehouse was designed tomeet its specialized needs and constructed next to its factory, the warehouse is quite illiquid by comparisonwith the accounts receivable.

The company could sell the ware house, but to find a buyer quickly for such adistinct structure the company probably would have to offer a discount or some other financial incentiveThe owners equity account can be viewed from two perspectives:accounting, the owner's initial and subsequent investments and whatever net income has beenretained in the business from its inception; orfinancial, the net difference between the value of assets and the obligations of liabilities. Thislatter definition causes analysts to be aware of the value of the assets in the marketplace, which is19important for collateral protection as well as for the potential revenue that may be producedfrom any firm's assets.(from "Analyzing Financial Statements" byThomas P.

Carlin, Albert R. Mc.Meen )2. Scanning exerciseScan text 2 to find information on 4 aspects;a) The definition of statement spreading;b) The concept of an adverse opinion;c) LIFO and FIFO inventory valuation methods used in accounting methods;d) The difference between accounting and financial perspectives (see FinancialCondition)3. Vocabulary Study exerciseGlossaryspreading for financial statementstax returnsstatement preparationmanagement's involvementinventory summaryInternal Revenue Servicepurchase price of fixed assetsprofessional (nonowing) manager of public corporationsfiscal yearretail businessthe Securities and Exchange Commission (SBC)the Financial Accounting Standards Board (FASB)unqualified opinionqualified opiniondisclaimer opinionadverse opinionunaudited statementsconformed copybalance sheetassetsliabilitiesnet worthincome statementstatement of cash flowliquidityleveragesolvencycoverageprofitabilityactivitycash budgetlong-term forecastAnnual Statement Studiesworking investment analysissustainable growth analysissensitivity analysisindustry factoraccounting perspectivefinancial perspective20a) find Russian equivalents for the following:a preliminary investigation of a company; an in-depth examination; to submit in support of loan requests; abusiness or marketing plan; backlog and contract status reports; an interest of entrepreneurial owners; to havepersonal wealth at stake in the corporation; to be responsive to government regulations; an unbiasedrepresentation; to received the highest accolade fro smth.; the scope of the audor's engagement at the auditedform; to present the financial position fairly to be approached from a wary perspective; the degree ofconfirmation of assets and expense account balances; to estimate wealth generated by the firm; to showinflows and outflows of cash; the ability to meet current obligation; to meet continuing payment obligations;on a month-to-month; basis; to measure the impact of sales growth.b) find English equivalents for the following word-combinations:Анализ финансовой отчетности; бизнес-план; налоговые отчеты; операционные бюджеты;бюджеты капитала; перечень или сводка товарных запасов; расшифровка счетов дебиторов; огчет озадолженностях и состоянии контрактов; расшифровка счетов кредиторов; перечень продаж ирасходов; налоговая служба; Комиссия по Ценным бумагам и биржам; Правление по стандартамбухгалтерского учета в Финансах; безоговорочное мнение; мнение с оговоркой; мнение с правовойоговоркой; неблагоприятное мнение; запрос на необеспеченный кредит; обзор и компиляция мнений;не ревизуемые отчеты; подтвержденная копия; табулирование финансовых отчетов; анализбалансового отчета; активы; обязательства; чистая стоимость; отчет о доходах; чистая прибыль; отчето потоках денежных средств; анализ коэффициентов; платежеспособность; прибыльность;деятельность; анализ тенденций; сравнительный анализ; долгосрочные планы; анализ инвестиций воборотные средства; анализ устойчивого роста; анализ чувствительности; фактор промышленности.с) match the following notions with the correct definition or phrase:1.

industry factor2. the statement of cashflow3. Balance sheet analysis4. activity5. income statement6. an adverse opinion7.the professional(nonowning) manager8. sensitivity analysis9.anopinionunqualifieda) ____________ — of public corporations must be responsive togovernment regulations.b) _____________ — means that the management receives the highestaccolade for presenting fairly the financial position and results ofoperations and changes in financial position for the period involved.c) _____________ — means that the statements present position andresultsof operations, but that there are certain qualifications about the scope ofthe auditor's engagement at the audited firm or that there are uncertaintiesabout the future which cannot be resolved or the effect of which- cannot beestimated.d) ____________ — means that because of limitations in the scope of theauditing firm's engagement or because of uncertainties about the future thatcannot be resolved or the effect of which cannot be estimated, theaccountants cannot express an opinione) ____________ — means that the statements do not present fairly ht thefinancial position or results of operations in conformity with _generallyaccepted accounting principlesf) _____________ — is the process by which information from financialstatements is recorded on a standard form, or spreadsheet.g) _____________ — entails an evaluationof the company's assets followed by an evaluationof its liabilities (debt) and, the differencebetween the two, its net worth (or equity)h) Next to be analyzed is the ____________ also called a profit and lossstatement or earnings statement.i) The third financial statement to be analyzed is_______________(stemming from the sources and uses of funds statement and.

itspredecessor, the sources and applications of funds statement2110. a disclaimer opinion11. statement spreading12. a qualified opinion13. leverage14. liquidity15. sustainable growthanalysislb. profitability17. solvency18. working investmentanalysisj) _________ — the efficiency with which acompany uses its assets (which will vary over time, particularly for a companythat is cyclical in nature).k) _________ – which considers the variabilis,- of the borrowing firm'scash flows by comparing them to the cash flows of other companies in itsindustry1) _________ — which uses multiple scenarios to ermine acompany's areas of greatest vulnerabilitym) _________ , which measures a companv's ability to expand its saleswithout changing its proportional use of debtn) __________ , which measures the impact of sales growth on financingrequirements and a companv's ability to expand sales;o) __________ , Coverage – the company's capacity to meei itscon i n u i n i n g payment obligation".p) __________ — the companv's ability to sell its products or providea seivice at a price that exceeds its expensesq) ___________ — the ability to meet current obligations and convertassets to cashr) ___________ — the relationship between liabilities and the company'snet worth4, Translation exerciseTranslate from Russian into English.

Use the following word-combinations:both the technical manipulation and the interpretation of financial information; to obtain the requisitefinancial statements; to evaluate the various income statement and balance shee.t accounts; to spread them: toassess the company's sources and uses of cash; to conduct trend analysis; to create or review the company smomivy cash budget; to determine the company's seasonal or other short-term funding needs to select fromseveral more-advanced analytical techniques; to undergo rapid growth.Анализ Балансового отчетаАнализ финансовой отчетности включает как техническую манипуляцию, так и интерпретациюфинансовой информации, чтобы оценить прошлую работу компании, и будущую жизнеспособность,лля определения риска предоставления кредита.

Эта оценка выражена в форму ic:Силы - Слабостъ> Неопределенности = Приемлемый риск кредита.На рамки экспертизы могут повлиять размер, цель и срок кредита или. в случае проблемногокредита, определенные обстоятельства, окружающие этот кредит. Анализ финансовой отчетностивключает следующие последовательные шаги:1) Получение необходимых финансовых отчетов.2) Оценка различных счетов балансового отчета и отчета о доходах и последующееих представление в крупноформатной таблице.3) Оценка предшествующих отчетов с акцентом ни результатах работы компании, видным изотчета о доходах, и на сё финансовой структуре, видной из её балансовых отчетов.4) Рассмотрение отчетов компании о денежных потоках с оценкой источников и использованияденег компании.5) Использование коэффициентов для анализа тенденций (сравнения результатов компании вовремени) и сравнительного анализа (сравнении результатов компании с аналогичнымикомпаниями в том же секторе промышленности).6) Особенно для краткосрочных кредитов, создание или рассмотрение ежемесячного денежногобюджета компании (проектируемых прихода и расхода) с иелью определения сезонных илидругих краткосрочных потребностей финансирования компании.7) Планирование будущей работы фирмы и таким образом её способности возместитьрассматриваемый кредит.

Это включает создание или обзор планируемых финансовых отчетов22компании (или гипотетических отчетов), ценность которых зависит в значительной степени отреалистичности планирования продаж.8) Наконец, кредитор может выбрать из нескольких более современных аналитических методовте, которые могут показать, например, способность компании быстро расти.После завершения всех аналитических шагов, аналитик должен интерпретировать информацию всвете нефинансовой силы и слабостей компании и полного окружения, в котором компания работает.5. Question for analysisWhat is accounting?Accounting contains elements both of science and art. The important thing is that it is not merely acollection of arithmetical techniques but a set of complex processes depending on and prepared for people.The human aspect, which many people, especially accountants, forget, arises because:1.