7. ACCOUNTING POLICIES AND STANDARDS PROFESSIONAL ENGLISH IN USE FOR FINANCE

 

PROFESSIONAL ENGLISH IN USE FOR FINANCE 7. ACCOUNTING POLICIES AND STANDARDS

 

A Valuation and measurement Investors in companies want to know how much the companies are worth, so companies regularly have to publish the value of their assets and liabilities. Companies also have to calculate their profits or losses: their managers need this information, and so do shareholders and the tax authorities. B Historical cost and inflation accounting The aim of accounting standards is to provide shareholders with the information that will allow them to make financial decisions. This is one reason why in many countries accounting follows the historical cost principle; companies record the   EXERCISES 7.1 Match the two parts of the sentences. Look at A and B opposite to help you. 1 Companies’ managers, investors, creditors and the tax authorities all 2 There are different ways of doing accounting but companies have to be consistent 7.2 Are the following statements true or false? Find reasons for your answers in A and B opposite. 1 Companies are told which accounting policies to use 2 Companies can change their accounting policies whenever they like, as long as they disclose this in their Annual Report 7.3 Complete the table with words from A and B opposite and related forms. Put a stress mark in front of the stressed syllable in each word. The first one has been done for you.

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