ACCOUNTING IN THE FUTURE (Part A)

Exercise 6.1

Study the vocabulary:

1.	crucial	1.	рушійний, ключовий;
2.	the medium of accounting itself	2.	засіб само обліку
3.	trend	3.	тенденція, загальний напрямок
4.	dimension of accounting	4.	вимір, сфера обліку
5.	investment flow	5.	інвестиційний потік
6.	financial statements	6.	фінансова звітність
7.	international standards	7.	міжнародні стандарти
8.	the requirements of government	8.	вимоги уряду
9.	relevant	9.	такий,що має відношення, відповідний
10.	implementation	10.	здійснення, впровадження

Exercise 6.2

Read the text to find out what important trends will bring forth in the 21^st century accounting:

What will accounting be like in the future? This is not an easy question to answer. It is well-recognised that accounting has played a crucial role in the development of human society. The medium of accounting itself is thought to have a great impact on economic thinking and economic activity in all countries of the world. The enormous growth of industry in the twentieth century has expanded the boundaries of accounting and, as a result, the needs for accountants have increased. Some accounting experts believe that this trend will continue in the 21^st century as well. New dimensions of accounting will be recognised and its comparatively new fields will be dynamically developing. The very terminology of accounting will be changed to bring forth «social accounting», «green accounting», «tax accounting», etc.

In the 21^st century the world will continue to move slowly towards a single economy. As trade and investment flows expand, this tendency will certainly contribute to an open global economy. As a result, there may appear more favourable conditions in the future for developing the uniformity of international accounting standards. Harmonising accounting standards internationally will improve the comparability of accounting information throughout the world and will to greater international understanding of accounting practices. In turn, more comparability will improve the analysis of financial statements. A single set of financial accounting standards will also save corporations' time and money since they will no longer have to multiple sets of financial statements. In a word, establishing international standards, accepted in many countries, is believed to raise the quality of accounting throughout the world.

At present, however, there are many problems on the way of setting such international standards. One is that accountants and users of accounting information have not been able to agree on the goals of financial statements. Another problem is certainly the differences in the way in which the accounting profession has developed in different countries, not to speak about differences in the laws regulating businesses, differences in the requirements of governments and other bodies. And still other differences are the ones that exist among countries in the basic economic factors affecting financial reporting, and inconsistencies in practices recommended by the accounting professions of different countries. While last but not least, there are opponents among accounting experts in different countries in relation to setting up accounting standards internationally. They think it would not make much sense to impose harmonisation because user needs are not similar internationally. And accounting is relevant only when it is responsive to the business environment in which it operates. Thus, there are grounds to think that the tendency of harmonising accounting standards internationally will continue to develop in the future, but its implementation will require time and organised efforts on the part of international accounting organisations.

Exercise 6.3

Match the English words with their definitions:

1.	accounting	a)	the system of recording and summarizing business and financial transactions and analyzing, verifying, and reporting the results
2.	impact	b)	marked by usually continuous and productive activity or change
3.	trend	c)	something that is needed or that must be done
4.	dimension	d)	one of the elements or factors making up a complete personality or entity
5.	comparative	e)	the quality or fact of having parts that disagree with each other
6.	dynamic	f)	adjustment of differences and inconsistencies among different measurements, methods, procedures, schedules, specifications, or systems to make them uniform or mutually compatible.
7.	standard	g)	the force of impression of one thing on another: a significant or major effect
8.	requirement	h)	a prevailing tendency or inclination; a line of general direction or movement
9.	inconsistency	i)	something established by authority, custom, or general consent as a model or example
10.	harmonization	j)	characterized by systematic comparison especially of likenesses and dissimilarities

Exercise 6.4

Fill in the gaps with appropriate words:

uniformity quality standards expand establishing contribute comparability economy analysis statements

In the 21^st century the world will continue to move slowly towards a single 1… . As trade and investment flows 2… , this tendency will certainly 3… to an open global economy. As a result, there may appear more favourable conditions in the future for developing the 4… of international accounting standards. Harmonising accounting standards internationally will improve the 5… of accounting information throughout the world and will to greater international understanding of accounting practices. In turn, more comparability will improve the 6… of financial statements. A single set of financial accounting 7… will also save corporations' time and money since they will no longer have to multiple sets of financial 8…. In a word,9 … international standards, accepted in many countries, is believed to raise the 10… of accounting throughout the world.

Exercise 6.5

Study the vocabulary:

1.	necessity	1.	необхідність
2.	rapid adaptation	2.	швидка адаптація
3.	manufacturing methods	3.	способи виробництва/ технологія виготовлення
4.	quite justified	4.	цілком виправдано
5.	to meet the demands of the time	5.	відповідати вимогам часу
6.	deficiency	6.	нестача, дефіцит
7.	necessary elements of adaptation	7.	необхідні елементи адаптивності
8.	assessing financial condition	8.	оцінка фінансового стану
9.	relevance	9.	доречність, важливість
10.	internal control	10.	внутрішньогосподарський контроль

Exercise 6.6

Read and translate the text: