рефераты конспекты курсовые дипломные лекции шпоры
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Реферат Курсовая Конспект
КУРС АНГЛИЙСКОГО ЯЗЫКА ДЛЯ ФИНАНСИСТОВ УЧЕБНИК
КУРС АНГЛИЙСКОГО ЯЗЫКА ДЛЯ ФИНАНСИСТОВ УЧЕБНИК - раздел Иностранные языки, Материалы, Размещенные В Телекоммуникационной Библиотеке И Представленные В В...
Материалы, размещенные в телекоммуникационной библиотеке и представленные в виде цитат,
Допускается использовать исключительно в образовательных целях.
Запрещается тиражирование информационных ресурсов с целью извлечения коммерческой выгоды, а также иное их использование в нарушение соответствующих положений действующего законодательства по защите авторских прав.
С.Н. ЛЮБИМЦЕВА, В.Н. КОРЕНЕВА
КУРС
АНГЛИЙСКОГО ЯЗЫКА
ДЛЯ ФИНАНСИСТОВ
УЧЕБНИК
Издание четвертое
ББК 81.2 Англ-923
Л 93
Допущено Министерством образования Российской Федерации
в качестве учебника по дисциплине
«Иностранный язык» для студентов высших учебных заведений,
обучающихся по финансово-экономическим специальностям.
Рецензент
кандидат филологических наук, профессор Л.М. ФЕДОРОВА
Любимцева С.Н., Коренева В.Н.
ISBN 5-8330-0120-Х Учебник предназначен для студентов финансово-экономических специальностей вузов, а также для лиц, использующих…ББК 81.2
Художник В. Сонкин
© Любимцева С.Н., Коренева В.Н., 2000 г.
ISBN 5-8330-0120-Х © Изд-во «ГИС», 2004 г.
ПРЕДИСЛОВИЕ
Данный учебник предназначен для студентов финансово-экономических специальностей вузов, а также для широкого круга лиц, использующих английский язык в своей практической деятельности в сфере экономики и финансов.
Учебник рассчитан на лиц, обладающих знанием нормативной грамматики английского языка и имеющих словарный запас в 2000-2500 лексических единиц.
В условиях возрастающей интеграции мирового сообщества и включения нашей страны в мировую финансово-кредитную систему английский язык стал средством общения для российских специалистов в области финансов, что предполагает практическое владение языком, т.е. умение принять участие в беседе на профессиональную тему и умение читать оригинальную литературу по специальности.
Исходя из задач, поставленных перед предметом «иностранный язык» в высшей школе, авторы данного учебника считают, что процессы познания и развития навыков устной речи должны быть неразрывно связаны. Данная методическая концепция и была положена в основу построения учебника и организации его материала.
В учебнике представлены как монологические, так и диалогические тексты. Такое сочетание текстов различного характера в структуре учебника обеспечивает возможность эффективного развития устных навыков, поскольку информация монологических текстов может быть использована для расширения текстов диалогического характера.
Учебник состоит из 14 разделов (Units), охватывающих широкий круг вопросов организации и функционирования финансовой системы, включая банковскую систему, финансовые рынки и т.д.:
1. Economic Environment (Экономическая среда)
2. Public Finance (Государственные финансы)
3. Fiscal Management (Управление государственным бюджетом)
4. Central Banking. Monetary Policy (Система Центрального банка. Кредитно-денежная политика)
5. Banking System (Банковская система)
6. Taxation (Налогообложение)
7. International Monetary System (Международная финансовая система)
8. Financial Markets: The Bond Market (Финансовые рынки: рынок облигаций)
9. Financial Markets: The Stock Market (Финансовые рынки: рынок корпоративных ценных бумаг)
10. Investment Activity (Инвестиционная деятельность)
11. Foreign Exchange Market. Global Financial Markets (Валютный рынок. Глобальные финансовые рынки)
12. Financial Management (Финансовый менеджмент)
13. Accounting (Бухучет)
14. Auditing (Аудит)
Для облегчения работы преподавателя с данным учебником и лучшей ориентации студентов в учебном материале, что является важным фактором успешного усвоения учебного материала, все уроки учебника имеют единую структуру, включающую следующие разделы:
1. A. Text А. Текст
В. Dialogue Б. Диалог
2. Notes Комментарий
3. Vocabulary List Список лексики
4. Exercises Упражнения
5. Discussion Обсуждение тематического материала
6. Reading Practice Материалы для чтения
Учебник также включает «Словарь ключевых терминов» ("Dictionary of Key Words") и образцы банковской корреспонденции ("Banking Correspondence").
Базовые тексты (А и Б) представлены описательным текстом и диалогом, которые тематически связаны друг с другом, но касаются различных сторон темы или расширяют ее.
Раздел Notes, содержащий пояснения реалий, перевод трудных для понимания слов и словосочетаний или частей предложений (а в отдельных случаях – краткие пояснения сложных грамматических конструкций), предназначен для облегчения понимания базовых текстов. Для удобства пользования каждая единица снабжена в текстах номером, облегчающим ее поиск в разделе Notes.
Раздел Vocabulary Listсодержит списки слов и сочетаний, которые предлагаются для активного усвоения. В подавляющем большинстве они носят тематический характер, хотя в ряде случаев в них включены слова, облегчающие понимание текстов.
Раздел Exercises включает в себя упражнения, направленные на контроль понимания базовых текстов (Ex. 1, 4, 5), а также упражнения на активизацию словаря (Ex. 2, 3, 6, 7, 8, 9), закрепление отдельных грамматических форм (Ex. 10) и на развитие языковой догадки (Ex. 11). В этом разделе следует особо выделить Ex. 6. Это двуязычный диалог, помогающий закрепить активную лексику и вывести ее в речь. Необходимо также подчеркнуть, что в соответствии с методической концепцией учебника все упражнения этого раздела, за исключением чисто языковых (Ex. 2, 3, 7), представлены связными текстами, являющимися источником информации по теме урока. В связи с этим, помимо языковых заданий, к упражнениям даются задания на развитие устных навыков, что, однако, не исключает дополнительных заданий, которые могут быть составлены преподавателями, работающими с данным учебником.
Раздел Discussion направлен на совершенствование речевых навыков и содержит текст(ы), диалог(и) и вопросы для обсуждения темы. Для более активного участия студентов в обсуждении темы в Ex. 14 (Discussion Questions) предлагаются небольшие конкретные письменные задания. Кроме того, данный раздел содержит упражнение (Ex. 15) на развитие навыка монологического высказывания, т.е. развернутого сообщения по теме, и упражнение (Ex. 16) творческого характера, связанное с просмотром прессы, знакомством со специальной литературой и т.д., цель которого развитие навыка работы с литературой по специальности.
Раздел Reading Practice содержит аутентичные тексты, дающие дополнительную профессиональную информацию по теме урока с различными заданиями, направленными на развитие навыков чтения. Все тексты этого раздела должны также использоваться для развития речевых навыков при выполнении упражнений из раздела Discussion
Авторы не предлагают строгих методических рекомендаций по использованию данного учебника, поскольку кроме специальных вузов он может быть применен в самых разных условиях учебного процесса и преподаватель сам может определить конкретные методические приемы в зависимости от уровня подготовки обучающихся и целей обучения. Разделы могут изучаться в представленной последовательности или выборочно, так как отбор словаря каждого урока обусловлен прежде всего его тематикой. Кроме того, тексты почти всех упражнений сопровождаются списками слов и словосочетаний, которые могут быть полезны для их понимания, что не исключает, однако, работу обучающихся со словарем (в том числе специальным).
Для исключения повторяемости профессиональной лексики в списках слов к текстам упражнений, а также для облегчения работы по закреплению и активизации профессиональной лексики в учебник включен раздел Dictionary of Key Words.
Тематика и характер учебных материалов, представленных в учебнике, обеспечивают формирование у студентов обширного профессионального словаря и навыков ведения беседы и чтения в рамках профессиональной тематики.
При подготовке учебника были использованы материалы прессы и различных специализированных изданий, а также оригинальные документы.
Транскрипция и ударения в учебнике приводятся по словарю "Longman Dictionary of English Language and Culture", Longman, 1992.
Приложение Banking Correspondence, а также отдельные материалы по работе коммерческих банков любезно предоставлены авторам Аверьяновой Л.В., автором многочисленных учебных пособий по обучению ведению банковской корреспонденции на английском языке.
Авторы учебника приносят благодарность канд. филол. наук редактору Кравцовой Л.И. за ценные замечания, рекомендации и помощь в работе над учебником.
UNIT 1. ECONOMIC ENVIRONMENT
A. TEXT
WHAT IS ECONOMICS ALL ABOUT?
It is characteristic of any society that while wants of people are growing constantly, the economic resources required to satisfy these wants are… There are different economic systems in the world today. Many economists argue… It is done through a market, which is a set of arrangements through which buyers and sellers make contact and do…B. DIALOGUE
BUSINESS CLIMATE IN RUSSIA
Foreigner: You represent the Independent Centre of Market Research, Mr. Pronin, don't you? What did the recent poll conducted by your centre… Russian: Yes, I'm head of our industrial research group. The poll you've… F.: It is not surprising. You are having difficulties owing to the unavoidable problems which arose in the initial…VOCABULARY LIST
economic resources[" ek@nOmIk rI'sO:sIz] экономические ресурсы limited['lImItId] adj (зд.) ограниченный scarce[skE@s] adj скудный, дефицитный, редкийEXERCISES
Ex. 1. Answer these questions: A. 1. What is characteristic of any society? 2. How can economic resources be classified?Ex. 7. Work on vocabulary and grammar.
economy, enterprise, policy, allocation, price, resources. b) Think of the verbs that are most commonly used with: resources, production, prices, policy, function, programme.D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:
a)to satisfy b)wants
to distribute factors of production
to save goods
to produce services
to utilize policy
to perform enterprise
to run allocation of inputs
to conduct functions
to choose resources
to pursue needs
F) Scan the dialogue and write out all the irregular verbs used in it.
1. are, different, today, in, world, there, systems, economic, the 2. demand, if, price, exceeds, tends, rise, to, the, supply 3. wants, constantly, people, are, of, growingH) Write out from the main text international words likecapital, economic, resources, instrument, etc. Transcribe and read them aloud.
Ex. 8. a) Supply the articles where necessary.
B) Has the situation changed since 1995? Prove your point of view.
... oil and gas industries of... former USSR were one of... very few industrial success stories of the final years of ... Soviet regime. Today,… Major Western oil companies, however, have been moving away from ... Russia…Ex. 9. a) Supply the prepositions where necessary.
B) Write down the questions that might have been asked during the survey by the sociological service.
C) Act out the interviews that might have taken place during the survey.
Russia now has more than 900,000 enterprises, their number having increased… The Cassandra sociological service carried out a survey about the prospects of small businesses in Russia. ... the…Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences. Present you summary in class.
The Market System The modern market economy is populated by three types of economic agents, whose _______ constitutes economic activity:…DISCUSSION
Ex. 12. Read and discuss the text. Single out the mam facts and present them in a short review.
The functions of an economic system may be defined as follows: a) to match supply to the effective demand for goods and services in an efficient manner;Ex. 16. Go to the library and try to find the latest figures for the rate of inflation, the unemployment rate, interest rates, and the industrial output in Russia. Compare the figures with the information you got from the exercises in Unit 1.
READING PRACTICE
Ex. 17. a) Read the article below quickly to find out what economic indicators are mentioned in the text.
B) Compare the situation in 1992 with the present-day situation.
In 1992 the economic situation in the Russian Federation continued to be very difficult, owing to large macroeconomic imbalances and to the… Real GDP and industrial production are estimated to have dropped by 19 percent… Monthly inflation rates began to decline after the jump in prices associated with price liberalization in January…С) Reread the article more carefully and complete the sentences given below, using information from the article.
1. In 1992 ... situation ... difficult. 2. Large macroeconomic imbalances ... in the initial stages of ... economy. … 3. ... progress was achieved in ... policies. 4. Real GDP ... by 19 percent in 1992. 5.... fell by 8 percent.B) Say how they characterize the UK economy.
The UK economy has recently experienced economic growth combined with low… The value of all goods and services produced in the economy is measured by gross domestic product (GDP). In 1997, GDP…UNIT 2. PUBLIC FINANCE
A. TEXT
FINANCE AND FINANCIAL SYSTEM
Finance is the provision of money at the time when it is needed. It is a system of monetary relations leading to formation, distribution and use of… The financial system is the network of institutions through which firms,… Savers and borrowers are connected by financial intermediaries including banks, thrift institutions, insurance…B. DIALOGUE
BUDGET ORGANIZATION AND BUDGET PROCESS
Foreigner: Could you give me a general idea of budget organization and budget process in the Russian Federation? Russian: Certainly. First of all, by the budget organization we mean the… F.: I suppose there is a close link between the budget organization and your state system, isn't there?VOCABULARY LIST
provision n снабжение, обеспечение monetary relationsденежные отношения formationn образование, формированиеEqualization nвыравнивание
per capita budget revenuesдоходы бюджета в расчете на душу населения averagen средняя величина, средний показатель budget federalismбюджетный федерализмEXERCISES
Ex. 1. Answer these questions: A. 1. What is finance and financial system?Ex. 4. Say in a few words what the main text is about. Use the opening phrases from Ex. 4 (Unit 1).
Ex. 5. Sum up the content of the main dialogue. Use the opening phrases from Ex. 5 (Unit 1).
Foreigner. It's impossible to overestimate the importance of a good, balanced… Russian: Полностью с вами согласен. Бюджет – это главный финансовый инструмент страны. Это план, прогноз, оценка…Ex. 7. Work on vocabulary and grammar.
provision, to provide, benefit, to benefit, expenditure, revenue, budget, deficit; b) Think of the verbs that are most commonly used with: money, policy, services, goals, priorities, resources, expenditure, revenue, budget, tax, autonomy, responsibilities,…D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:
a)to make b)funds
to approve provisions
to provide payments
to formulate expenditure
to cut revenue
to cover deficit
to provide for proposal
to consider budget
F) Write out from the main text international words like finance, system, etc. Transcribe and read them aloud.
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
The financial heart of England is the City. It is ... square mile in London on… It is ... home of commodity, financial, and insurance markets that are all concentrated in the narrow streets, which…B) Write down six questions about the text.
The transformation of the economic and political systems in Russia has been… On the whole, the budgetary policy in Russia is aimed ... attaining the efficient allocation of national resources,…Ex. 11. a) Fill each gap with a suitable word from the box.
What Is Money?DISCUSSION
Ex. 12. a) Read and discuss the texts.
B) Single out the main facts of each text. Present them in a short review.
C) Compare the budget of New York with the budget of Moscow or St. Petersburg. Name the major budget expenditure items.
A) The Budget Message of the Mayor
(the City of New York)
April 27, 1995
To Members of the City Council: The budget for fiscal year 1996 has been prepared in the context of the… In this connection I would like to stress that as the city authorities promised the crime is down dramatically, the…Ex. 13. Read the dialogue, sum up its content and act it out.
Foreigner: When was it decided to set up a treasury in Russia? Russian: The decree on setting up a treasury was signed in December 1992. But it would be more correct to speak about…Ex. 16. While reading newspapers and watching TV programmes, pay attention to how the budget discussions are covered by the media. Is the general public interested in the debates? What do people think about "budget federalism"?
READING PRACTICE
Ex. 17. Read the text and name the facts from the text which are new to you:
Treasury
Despite the many changes and reforms in Russia over the past few years, budget execution still presents significant problems. There is a lack of efficient control of expenditure, of information on extra-budgetary funds, of a well-defined procedure for the allocation of funds between different levels of government. In addition, there are problems with the budget classification, the obsolete system of public accounts, weak debt and cash management practices.
In 1993, Russia began its work on setting up the Federal Treasury. It consists of the Main Department of the Federal Treasury of the Ministry of Finance of the Russian Federation and its territorial bodies in republics, areas, and regions. The tasks of the Treasury are the following: to organize and exercise control over the execution of the federal budget; to regulate relations between the federal budget and federal off-budget funds; to exercise control over the receipt and use of the funds; to regulate relations between the federal budget and budgets of subjects of the Federation; to make short-term projections of financial resources and to manage them; to collect and compile information about the position of federal finances, to manage, and service the state internal and external debt jointly with the Central Bank.
The new Treasury is expected to require that all spending units should report their operations at the commitment, verification and payment stages. The plan is that after verification of budget allocation and compliance with existing authorization the Treasury will issue the actual payment orders against a unified Treasury account with the Central Bank. This will imply a far-reaching change of budgeting practices in Russia. The new mechanism will allow the government to exercise effective spending controls in order to have updated information on government expenditure and for debt and cash management purposes. The new Treasury is also expected to help remedy other deficiencies in the process of budget execution. Effective implementation of the new Treasury system will lead to changes outside the budget execution, such as budget classification and accounting standards.
Words you may need:
despite prep несмотря на
lackn недостаток
obsoleteadj устаревший
public accountсчет государственного учреждения
debt and cash managementуправление долгом и наличными средствами
to exercise controlосуществлять контроль
receiptn получение, поступление
internal and external debtвнутренний и внешний долг
jointly (with)совместно (с)
spending unitбюджетная единица
commitmentn (зд.) поручение
verificationn проверка, контроль
authorizationn разрешение
to issue payment ordersвыдавать платежные поручения
updatedadj обновленный, скорректированный
to remedy deficienciesисправлять недостатки
accounting standardsстандарты бухучета
Ex. 18. a) Read the article below quickly to find out the main facts about the reform of the financial system in Indonesia:
Reform of the Financial System: Indonesia
A key element of Indonesia's comprehensive adjustment effort in 1983, following a sharp decline in oil revenues and a weakening of the economy's finances, was a reform of the financial system. Before the reform, the major instruments for conducting monetary policy available to the central bank, Bank Indonesia (BI), were credit ceilings for individual banks, and interest rate controls for state banks.
Before the financial reform, the expansion of liquidity credits and net foreign assets had led to a rapid growth of reserve money, which left the banking system with a large volume of surplus funds. This excess liquidity together with interest rate controls produced distortions in the pattern of domestic financial intermediation. Moreover, since an increasing proportion of deposits was being placed in nonbank financial intermediaries which were not subject to either interest rate controls or credit ceilings, during this period, the effectiveness of monetary controls was weakened.
The financial reform included replacing the system of restrictions on financial institutions with a more indirect system of monetary control. Interest rate controls were eliminated, a wide range of loan categories were made ineligible for liquidity credits, credit ceilings on individual banks were eliminated, and a new mechanism of monetary control that relied principally on open market operations was introduced.
Since there were no domestic public debt instruments available for open market operations, BI began issuing its own debt instruments which could be readily marketed under the prevailing circumstances of excess liquidity. The sale and repurchase of these instruments allowed the central bank to absorb or inject bank reserves at its own initiative and to influence domestic money market conditions.
The most important success of the reform was the rapid growth of domestic currency deposits after June 1983 and the marked slowdown in the accumulation of foreign currency deposits, reflecting the increased confidence in the domestic banking system and its greater competitiveness. Moreover, the move to open-market operations as the principal instrument of monetary control greatly improved the authorities' technical ability to manage monetary and reserve aggregates. Indonesia was able to successfully put in place an indirect system of monetary and interest rate management despite the lack of a sophisticated money market at the outset of the liberalization process.
Words you may need:
credit ceilingкредитный потолок
interest rateпроцентная ставка
liquidity creditликвидный кредит
net foreign assetsчистые иностранные активы
monetary controlкредитно-денежный контроль
eliminatev уничтожать; упразднять
ineligibleadj не имеющий права
open-market operationsоперации на открытом рынке
debt instrumentдолговое обязательство
excess liquidityизбыточная ликвидность
currency depositsвалютные вклады
marked slowdownзаметное снижение
monetary and reserve aggregates денежные и резервные агрегаты
at the outsetв начале
b) Reread the article more carefully and complete the sentences given below using information from the article:
1. A key element of Indonesia's adjustment effort in 1983 was
2. Credit ceilings and interest rate controls were_______
3. Before the financial reform rapid growth of reserve money was caused by_______
4. The effectiveness of monetary controls was weakened because
5. In the course of the financial reform_______were eliminated.
6. BI began issuing its own debt instruments as_______
7. The Central Bank influenced the domestic money market conditions by_______
8. Domestic currency deposits______after June 1983.
9. Despite the lack of a sophisticated money market_______
UNIT 3. FISCAL MANAGEMENT
A. TEXT
FINANCIAL POLICY. FISCAL SPHERE
Financial policy is a very complex notion covering measures aimed at working out basic concepts, major guidelines, goals and objectives, as well as… Over the past two decades financial problems have exacerbated the world over.… Central to these solutions is fiscal policy. Fiscal policy is the policy adopted by a government for raising revenue…B. DIALOGUE
EFFECTIVE FISCAL POLICY
Russian: What's the essence of effective fiscal policy? Foreigner. You are raising a difficult question. In general, fiscal policy is… R.: Yes, it's common knowledge that fiscal policy is a powerful tool in the hands of governments, it is a major factor…Notes
1 are vested in various levels of government –переданы различным уровням власти
2 It is argued that... –Утверждают, что...
3... is likely to be achieved –... по всей видимости, будет достигнут
Конструкция «is likely + инфинитив» называется «именительный падеж с инфинитивом» или «сложное подлежащее».
Этой конструкцией можно заменить сложноподчиненное предложение с главным предложением, выраженным безличным оборотом типа it is said'говорят'; it is reported'сообщают'; it seems, it is likely'похоже, по-видимому' и т.п.:
It is said that they know English well. ® They are said to knowEnglish well.
Оборот «сложное подлежащее» употребляется, когда сказуемое выражено:
1) глаголами to say, to state, to report, to announce, to believe, to consider, to hear, to suppose, to think, to expect, to know, to understand, tosee в пассивной форме.
Перевод предложения со сложным подлежащим начинают со сказуемого, которое по-русски выражается неопределенно-личным оборотом «Известно ...», «Говорят...», «Сообщают» и т.д. Дальше строится дополнительное придаточное предложение, в котором роль сказуемого будет играть инфинитив. Перфектный инфинитив переводится глаголом прошедшего времени:
Non-tax revenues are reported to haveСообщают, что с прошлого года
considerably increased since last year. неналоговые доходы существенно возросли.
2) глаголами to seem, to appear, to prove, to happen, to chanceв активной форме:
I happened to be there at the time. Случилось так, что в это время я был там.
3) оборотами to be likely, to be unlikely, to be certain, to be sure:They are likely to come. Вероятно, они придут.
4 Substantial evidence exists... – Имеются веские доказательства того, что ...
5 More often than not, however... – Однако, гораздо чаще ...
VOCABULARY LIST
A. fiscal management["fIsk@l 'm{nI³m@nt] управление государственным бюджетом fiscal sphereбюджетно-налоговая сфера notion['nouS@n] п понятиеEXERCISES
Ex. 1. Answer these questions: A. 1. What does the notion "financial policy" mean?Ex. 7. Work on vocabulary and grammar.
macroeconomic performance, deficit, management, taxes, revenues, expenditure,… b) Think of the verbs that are most commonly used with these nouns:D) Make your own sentences with any five word combinations from (b) and (c).
a) to establish b) difficulties to face effortsEx. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the texts.
C) Compare the problems the two countries are trying to solve.
A) Financial Policy
... term is broad and its definition is likely to differ somewhat from country to country. On the widest definition, it covers ... fiscal policy… Financial policy whose main goal is provision of financial resources for ...… The economic policy of... Russian Federation is aimed at creating conditions for sustained economic growth by reducing…B) Fiscal Policy in the UK
Fiscal policy in ... UK is guided by two strict rules: • ... Government will borrow only to invest and not to fund current… andB) Write down 3-5 questions about the text.
The past two decades have seen the development of a worrisome and… A striking characteristic of modern fiscal imbalances is that they originate ... dramatically increased spending…Loopholenлазейка
tax evasionуклонение от уплаты налогов
leadershipn руководство
Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences and present your summary in class.
Since the early 1970s quite a number of countries have been experiencing… Trying to find solutions to swollen budget deficits, governments undertake austerity programmes, work out harsh…DISCUSSION
Ex. 12. a) Read and discuss the texts.
B) Write down five questions about each text.
C) Say what you know about the use of multiyear budgeting and budget classification in Russia.
A) Multiyear Budgeting
It has become quite common for ministries of finance around the world to practise some variety of multiyear budgeting. For example, Canada, Germany… In Germany, the annual budget is integrated in a multiyear financial plan,… The most important objective of the multiyear financial plan is to monitor the possible existence of excessive demands…B) Types of Budget Classification
A system of budget classification enables the myriad government operations and transactions to be organized into relatively homogeneous categories… On the revenue, taxes are classified by the type of activity on which the tax… Grants are distinguished by whether they come from domestic or foreign governments and international institutions and…A) Fiscal Policy in Transition Economies: a Major Challenge
Russian: It is recognized that fiscal policy has been at the centre of the economic reform programs pursued by economies in transition. Foreigner. Yes, practically all programs that they followed in their initial… R.: What were their first steps towards market economy?B) On Macro- and Microeconomics
Russian: Economists know that there is considerable controversy about macroeconomic models because some of them do not match the fluctuations in… Foreigner: Essentially, macroeconomics dates from Keynes and I stick to the… R.: So, if I get you right, macroeconomists study such economic aggregates as total expenditure, income and…Ex. 16. Quote examples from financial publications, newspapers, TV programmes to illustrate fiscal problems some countries are facing. How do they resolve them?
READING PRACTICE
Ex. 17. a) Read the article quickly and find the definition of a country's balance of payments and the explanation of what the "current account" and "capital account" are.
B) Reread the article more carefully and compare the facts about the UK and the US with the situation in Russia.
Balance of payments is a country's set of accounts with the rest of the world,… Thus, the current account or the balance of trade consists of several items:Ex. 18. a) Read the article quickly and underline the parts about the challenge the transition economies face and the constraints affecting the ability of the governments to meet the challenge.
B) Reread the article more carefully and pick out facts explaining the changes in the social sphere in comparison with the past and the recommendations of international experts.
Transition Economies Need to Reform Social Safety Nets
The former centrally planned countries undergoing economic transition have experienced a sharp decline in output, income and employment in recent… In this adverse climate, tansition countries now face the challenge of… Unemployment and Underemployment. The collapse of output has drastically reduced labor demand, increasing open…Ex. 19. Look through the article and find the answer to the following question: What can help improve the lives of people in transition economies?
Since 1989, extensive political and fiscal decentralization has been under way… Since the transition, "local self-government" legislation has been enacted in virtually every former…UNIT 4. CENTRAL BANKING. MONETARY POLICY
A. TEXT
CENTRAL BANKING SYSTEM
The central banking system is a major sector of any modern monetary system. It is of great importance to the fiscal policy of the national… Central banks such as the Bank of England, the Federal Reserve Board of the… In particular, they control the money supply, fix the minimum interest rate, act as lenders of last resort to…B. DIALOGUE
BANKING SYSTEM IN RUSSIA
Foreigner: What is characteristic of the Russian banking system these days? Russian: The banking system in Russia is organized as a 2-tier system. The… F.: Has the CBR supported the economic and financial transformation of the country, the ongoing reforms?VOCABULARY LIST
A. central banking systemсистема центрального банка monetary systemденежная система to be of importance быть важнымEXERCISES
A. 1. What is the major sector of any modern monetary system?Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Foreigner. Western bankers unanimously admit that your banking system has changed rapidly since Russia embarked on economic reforms. Russian: Да, это так. Я рад слышать такую оценку. Наша банковская система… F.: Undoubtedly, your Central Bank has contributed to the process and supported the reforms.Ex. 7. Work on vocabulary and grammar.
requirements, deposit, check, reserves, capital, assets, liabilities; b) Think of the verbs that are most commonly used with:D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:
a) to deposit b) ratios
to impose targets
to fix function
to appoint chairman
to perform money
to control circulation
to clear checks
to maintain accounts
F) Write out from the main text international words like: central, modern, etc. Transcribe them and read aloud.
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
C) Describe the principal instruments of credit policy.
Credit policy is ... component of economic policy. It is a combination of… Credit policy and monetary policy tend to be closely related and in some countries credit policy is regarded as ...…B) Describe the impact of "easy" and "tight" monetary policy on an economy.
Monetary policy is the branch of financial policy that is concerned ... controlling the supply of money and credit. Monetary policy is important… If a government pursues an "easy" monetary policy it means that it… If government pursues a "tight" monetary policy, it restricts the amount ... money in circulation and…Ex. 10. a) Open the brackets, putting the verbs in the correct form.
B) Compare the FED, the CBR and the Bank of England, using information from the unit.
The Bank of England is Britain's central bank. Founded in 1694, it (to be) the… The Governor, Deputy Governor, and 16 Directors who form the Court of Directors (to appoint) by the sovereign on the…Eх. 11. Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences. Present your summary in class.
| institutions apply engage conduct impact operating branches activities banks legislation responsibilities powers |
US Activities of Foreign Banking Organizations
The International Banking Act of 1978 (IBA) provided for federal regulation of the US operations of foreign banks and granted important new… The IBA created a federal regulatory and supervisory structure for the US… At the federal level, the IBA apportioned primary supervisory responsibility for US _________ and agencies of foreign…DISCUSSION
Ex. 12. a) Read and discuss the texts.
B) Single out the main facts from the texts and present them in a short essay.
C) Give your answer to the question in the title.
A) Is Monetary Policy Needed?
Many people believe that central banks should conduct an active, interventionist monetary policy even though most countries are abandoning other… Monetary policy, which represents government intervention in the marketplace… Some people still believe that controlled growth of the money supply will minimise inflation. In fact, the quantity of…B) Payment Systems
Public policy responsibility for the payment system usually rests with central banks. Central banks are naturally interested in the payment system… The central bank also participates in the payment system as a provider of… The Central Bank of Russia, with the assistance of international experts, has taken steps to draft legislation and…Ex. 16. Scan the foreign financial newspapers available to you and look for articles about banking in Russia and the role of the Central Bank. Present the information in class and comment on it.
READING PRA CTICE
Ex. 17. a) Read the article quickly to find the answer to the following question: Why are serious banking problems inevitable in transition economies?
B) Reread the article more carefully and underline the parts where conditions for avoiding banking problems in transition economies are mentioned.
The number of countries experiencing significant banking problems has increased substantially in recent years. It should be stressed that the… The problems arose from weaknesses and distortions in the banking systems and… Serious banking problems were almost inevitable in transition economies, because uncontrolled and unsupervised growth…B) Reread the article and find the options for an exchange rate policy different countries have these days. Say what they imply.
Exchange rate policy involves choosing an exchange rate system and determining… A country's economic structure and its institutional characteristics are important considerations in determining…A. Peg to a single currency.
By pegging the value of a currency to that of a single currency the country facilitates its trade with the country whose currency is used as the peg. Besides, capital flows related to investment may be positively affected by the stability of the exchange rate. Moreover, pegging to a stable currency, like the US dollar, enhances the confidence in the pegging country's currency.
B. Peg to a basket of currencies.
C. Independent floating.
Independent floating potentially provides a mechanism for an efficient foreign exchange market. Most industrial countries and some developing countries have adopted floating…Eх. 19. a) Read the text that follows and find the parts explaining: the aim of reforms of the banking systems in the countries mentioned in the article; the causes of bank insolvencies.
B) Reread the article again and sum up the conclusions of the meeting described in it.
On May 13-14, 1996, the IMF arranged the ninth coordinating meeting on central… Reforms in the monetary, exchange, and banking areas in the Baltic and the CIS countries have sought to achieve a…Ex. 20. a) Read the text quickly for the main points.
Money is as hard to measure and define as it is to control. Money is graded according to its LIQUIDITY – notes and coins being completely liquid,… In Britain:UNIT 5. BANKING SYSTEM
A. TEXT
COMMERCIAL BANKS
By definition, banks are institutions which accept money from people for safe keeping, lending it out to others, but particularly creating money by… Thus, commercial (or in the UK clearing) banks are providers of payment… By pooling risks, by studying the experience of many individuals and by acquiring the expertise to assess the prospect…B. DIALOGUE
Interview With a Bank Manager
Reporter. As far as we know, last year was a year of substantial progress for your bank, wasn't it? Banker. Yes, our bank made excellent progress. We increased market share and… R.: Could you substantiate it by some figures?VOCABULARY LIST
loanп ссуда advance п аванс, ссуда clearing bank клиринговый банкEXERCISES
A. 1. What services do banks offer? 2. What is the nature of banking? How do banks earn a living?Ex. 5. Sum up the contents of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Foreigner. In my opinion, the main objective of your crisis-hit banks is to… Russian: Многие наши банки действительно находятся сейчас в сложном положении. Число вкладчиков значительно…Ex. 7. Work on vocabulary and grammar.
credit, loan, account, interest, bill, check, maturity, deposit; b) Think of the verbs that are most commonly used with:D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:
a) to discount b) needs
to accept expertise
to provide bill
to issue travellers' cheques
to achieve service
to pay profit
to acquire letter of credit
to withdraw interest rate
to satisfy deposits
to meet money
to grant loans
to open demand
F) Write out from the main text international words like: agent, credit, etc. Transcribe them and read aloud.
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the texts.
C) Say a few words about services provided by commercial banks.
a)A bank was originally ... bench set up in the marketplace for ... exchange of money. In a commercial sense, a bank is ... establishment where… • to receive money on current accounts repayable on demand, or on deposit… • to lend money by granting ... loans and ... overdrafts or discounting bills of exchange and ... promissory notes. …D) Explain the difference between current and deposit accounts.
B) Bank Accounts
When money in placed in ... bank it is said to be "deposited". The money may be put into ... account from which it can be drawn at any time,… A person uses a current account to provide ... safe way of keeping his money, and having it easily available when he…B) Write down 3-5 questions about the texts.
a) The first bankers in Britain were Lombards, ... Lombardy in northern Italy. Merchants and traders from this part of Italy came to do business in… Banking came to be conducted ... the goldsmiths as a sideline to their normal… Banking developed, but Lombard Street, a narrow street in the City of London where Italian bankers settled ... in the…B) The Nature of Banking
The nature ... banks can best be understood ... examining both their long-established functions and new emerging roles. The former include the… What differentiates banks from other financial intermediaries? First, banks… Words you may need:Ex. 10. a) Open the brackets putting the verbs in the correct form.
B) Say what you have learnt from the text about international banks.
Basic principles of commercial banking best (to demonstrate) in the case of international banks. These institutions are the dominant traders in the… Eurobanks are typically London branches of these large international banks and…Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences and present your summary in class.
Mergers and Acquisitions to Reduce Europe's Overbanking Europe is vastly overbanked and overbranched, according to a recent_______of 100 European banks from 13 countries.DISCUSSION
Ex. 12. Read and discuss the texts that follow.
A) Explain the difference between loans and overdrafts.
B) Discuss the services provided by banks.
A) Bank Loans and Overdrafts
There are two principal ways in which a businessman can borrow money from his bank: by means of a loan and by means of an overdraft. An overdraft is "a sum of money drawn from a bank by a customer that is… Here is an extract from Statement of Terms and Conditions for Non-U.S. Banks of Citibank, N.Y.:С) Discuss the kinds of banks described in the text and their functions.
b) In a country with a developed banking system there are different kinds of banks with widely varying activities: They are: 1. The Universal banks.Those banks (commonly found in Switzerland, West… 2. The ordinary deposit banks.These include the commercial or joint-stock banks, large and small, some private banks.…Ex. 16. Scan several business newspapers and make conclusions about the attitude of businessmen to the presence of foreign banks in Russia.
READING PRACTICE
Ex. 17. Read the article below quickly to find out the functions the discount market performs.
The discount market is the fusion of the London markets for sterling… For many years it was synonymous with the London money market but with the rise to prominence of the parallel markets…Ex. 18. Look through the text and name the facts which are new to you.
A crucial aspect of the development of a country's domestic banking system and financial markets is the payment system, which is used by enterprises… The payment system is the apparatus through which obligations resulting from… For a credit payment, such as a payment order, the party making the payment initiates an instruction to his bank to…Ex. 19. Read the article below carefully to find specific information about paper-based payment systems, electronic funds transfer systems, and recent tendencies in the development of payment systems.
Paper-based systems are slow and costly to operate, involving physical movement of paper which must be sorted and cleared. They are prone to error, delays or disruptions because of returned cheques, missing documents or errors in data capture.
In recent years some countries have speeded up the documentation flows due to the rapid innovation of telecommunications and bank computer technology which has revolutionized payment systems. It is particularly true of debit or credit card-based transactions, in which bank customers may give instructions to effect funds transfers electronically through automated teller machines (ATMs), terminals or at retail outlets which operate electronic funds transfer at point of sale (EFTPOS). EFT systems have the advantage of speed, accuracy, convenience and greater efficiency relative to paper-based systems, but are much more costly to install and technologically complex to maintain.
Most developed countries now maintain a mixture of paper-based and EFT systems.
Modern payment systems generally cover the following key components:
a. cheque clearing system;
b. automated clearing houses for bank EFT payments;
c. credit/debit card systems including ATMs and EFTPOS;
d. giro payment system;
e. interbank funds transfer system (such as Fedwire); and
f. securities market clearing/settlement system.
Modern banking technology enables payment systems to handle larger volumes of information faster, with greater accuracy, thus reducing the float and the time lag between a transaction and its settlement. As banking systems and financial markets become more inter-linked, payment systems have become increasingly interconnected through harmonized document and telecommunication standards. The greater the degree of harmonization of standards, the more efficient the information flows.
Banks that engage in foreign trade and foreign exchange transactions find it useful to become part of the international electronic message switching network operated by SWIFT (the Society for Worldwide Interbank Financial Telecommunications).
Since payment systems also develop hand in hand with the volume of market transactions, modern payment systems are increasingly integrated with financial market settlement systems, where market transactions are automatically matched with payment instructions and settled on time.
Words you may need:
paper-based systemсистема, основанная на обработке документов в бумажном виде
to be prone to errorприводить к ошибкам, не исключать ошибок
delayn задержка
disruptionn срыв, нарушение
data capture(зд.) считывание данных
documentation flowдокументопоток
to effect funds transferосуществлять перевод средств
terminalтерминал retail outletторговая точка
electronic funds transfer at point of sale (EFTPOS)система электронных платежей в пункте продажи
giro payment systemсистема жироплатежей (почтовая)
Fedwire«Федуаер» – система электронной связи, принадлежащая Федеральной
резервной системе США
floatn срок между предъявлением чека в банк и его оплатой
time lagвременный лаг, отставание, запаздывание
SWIFTСВИФТ
UNIT 6. TAXATION
A. TEXT
WHAT ARE TAXES?
Taxes are a compulsory financial contribution by a person or body of persons towards the expenditure of a public authority. In modern economies… Taxes are considered to have three functions: (a) fiscal or budgetary, to cover government expenditure, to provide the public authorities with the revenue required…B. DIALOGUE
TAXATION IN RUSSIA
Foreigner: I hear that many Russians complain that taxes are too high in Russia, personal income tax, for example. Russian: I can't agree with you here. The existing 12% income tax on personal… F.: There are many rich people in Russia now. How are higher incomes taxed?VOCABULARY LIST
compulsory adj обязательный, принудительный tax on income подоходный налог tax on wages налог на заработную платуEXERCISES
A. 1. What are taxes? 2. What are the purposes of direct and indirect taxation?Ex. 5. Sum up the contents of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Foreigner: The tax system in Russia has changed significantly over the years… Russian: Да, это так. Несмотря на огромную работу в области налогового законодательства, проделанную за годы реформ,…Ex. 7. Work on vocabulary and grammar.
tax, taxation, tax allowance, tax breaks, tax concessions, tax benefits, tax… b) Think of the verbs that are commonly used with:D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with nouns from (b) below:
a) to reduce b) economic welfare
to improve taxes
to correct inequality
to increase revenue
to check imports
to withhold business
to tax adverse balance of payments
F) Write out from the main text international words like: contribution, authority, service, etc. Transcribe them and read aloud.
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the texts.
C) Say if you have ever reclaimed your VAT.
The main difference between ... duty-free and ... tax-free shopping is that duty-free is available to everyone travelling within ... EU. Tax-free… Most goods are sold with VAT included in ... selling price. This ranges from… Tax-free shopping has become ... big business with tourists from non-EU countries spending huge sums every year. It's…Ex. 9. a) Supply the prepositions where necessary.
B) Write down 3-5 questions about the text.
C) Explain the functions perfomed by excise duties.
What Is an Excise Duty?
Indirect taxes are divided ... general and special taxes ... consumption. The general tax on consumption, value-added tax, or VAT, is levied ...… As far as payments to the state are concerned, it is common to distinguish ...… Payment... a tax does not entail any direct counter-performance ... the part of the state. The revenue from taxation…Tax Reform in Developing Countries
In 1985, the government of Jamaica (to embark) on a comprehensive tax reform. This reform (to include) changes in the personal income tax, the… Under the reformed system, the complex rate structure (to replace) with a… The government of Indonesia (to adopt) a major tax reform in late 1983. An important aspect of this reform was the…B) Sum up the text in 5-7 sentences and present your summary in class.
Tax Administration The tax system in Russia has changed significantly_______the past five years. One of the_______ changes has occurred…DISCUSSION
Ex. 12. a) Read and discuss the text.
B) Sum up the text in 5-7 sentences and present your summary in class.
C) Give your opinion on "tax havens".
What do the Bahamas, Bermuda, Hong Kong, Liberia, the Netherlands, the New… Essentially, a tax haven is a place where foreigners may receive income or own assets without paying high rates of tax…Eх. 13. Read the dialogue, sum up its content and act it out.
Russian: I'm sure you know that one of the most serious problems in Russia now is poor tax collection causing sharp decline in tax revenue. Foreigner. Yes, we know that and understand your concern. But tax evasion is… R.: In Russia many individual taxpayers simply do not pay taxes. We can't put up with such a situation any longer,…Ex. 16. Go to the library and read on taxation in major industrialized countries and countries in transition. Does our system of taxation have much in common with them?
READING PRACTICE
Ex. 17. Read the text below carefully and underline the parts of it giving basic ideas about the desired features of a tax system.
Recent studies have singled out some of the desired features of the tax system… • Concentration of revenue sources.A system that raises revenue from a limited number of taxes and rates may…Ex. 18. a) Read the text quickly for the main points about the major sources of revenue for the local government budget hi Slovakia.
B) Reread the text carefully and explain all figures used in it.
Major Sources of Revenue for the Local Government BudgetUNIT 7. INTERNATIONAL MONETARY SYSTEM
A. TEXT
INTERNATIONAL MONETARY INSTITUTIONS
There is little exaggeration in saying that international monetary developments affect all individuals as workers, consumers, travellers,… Employment opportunities for some workers are improved when exports thrive and… A movement in the exchange rate may benefit an individual in one of his roles but leave him worse off in another. The…B. DIALOGUE
IMF'S SUPPORT FOR RUSSIAN REFORMS
IMF official: In line with the IMF's desire for greater economic stability in the world, and for stronger, more sustained growth we made a decision… Interviewer. Life has proved that4 Russia's strategy for adjustment and reform… Off.: All adjustment programs supported by the IMF entail risk, since only countries experiencing balance-of-payments…VOCABULARY LIST
international monetary institutionsмеждународные финансовые организации exaggeration n преувеличение affect v воздействовать, влиятьEXERCISES
A. 1. In what ways are individuals affected by international monetary… 2. What is the international monetary system?Ex. 5. Sum up the content of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Russian: Общеизвестно, что Всемирный Банк имеет одну основную цель –… Foreigner. The World Bank's lending really jumped to record levels boosted by its support for countries hit by the…Ex. 7. Work on vocabulary and grammar.
adjustment, balance of payments, exchange rate, trade, parity,… b) Think of the verbs that are most commonly used with:D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:
a) to address b) export controls
to affect individuals
to provide relationships
to define interests
to reconcile accounts
to impose impact
to strengthen benefits
to adjust functions
to settle problems
F) Write out from the main text international words like investor, channel, role, etc. Transcribe them and read aloud.
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
C) Describe the purposes for which the IMF was set up.
The International Monetary Fund, an association of governments, was set up on… Words you may need:Eх. 9. a) Supply the prepositions where necessary.
B) Write down 3-5 questions about the text.
C) Describe the purposes for which the organization was set up.
Your Partner EBRD
The EBRD (European Bank for Reconstruction and Development) is a multinational institution set ... with the specific aim of assisting the countries… The strongest comparative advantage of the Bank relative to other… Specifically, the EBRD seeks to promote the development of the private sector within these economies ... its…B) Describe the IMF's activities during the anniversary year.
The fiftieth anniversary of the Bretton Woods Conference that led to the… In this connection 1995, the anniversary year, (to be) the year of intense activity for the IMF. First of all, the IMF…Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences and present your summary in class.
C) Describe the World Bank's activities. Say how they differ from those of the IMF.
World Bank – International Bank for Reconstruction and Development (IBRD) The "World Bank" refers to the International Bank for Reconstruction and Development (IBRD) and its…DISCUSSION
Ex. 12. a) Read the text.
B) Describe the facilities under which resources are made available to the IMF members.
C) Explain the "conditionally" principle of the IMF.
The IMF's financial resources are made available to its members under a variety of facilities and policies, depending on the circumstances,… The IMF makes resources available under both its general resources and its… Regular facilities include: Reserve tranche, Credit tranches, Standby Arrangements, Extended Fund Facility. In…Ex. 16. Scan the available financial newspapers. Comment on the most important events in the international monetary system today.
READING PRACTICE
Ex. 17. a) Read the text quickly for the main information.
The Special Drawing Right (SDR) is an international reserve asset created by… The SDR was initially valued by the IMF in terms of a fixed quantity of gold and was redefined in June 1974 as a…Ex. 18. a) Read the text below quickly to find the names of the countries mentioned.
B) Reread the text carefully and underline all parts saying about the Paris Club.
Debt rescheduling is a form of debt reorganization in which debtors and creditors negotiate to defer payments of a principal and interest falling… Some countries find it almost impossible to service their external debts.… The Paris Club is an informal forum where countries experiencing difficulties in paying their debts to governments and…Ex. 19. a) Read the article below quickly to find the major points of criticism towards the IMF.
B) Reread the article to find the sentence describing the present-day relations between the IMF and the World Bank.
It was not only Brazil that ran up the white flag last week when it halted the defence of its currency on the world foreign exchanges. The defeat of… The orthodox approach insisted on by the IMF in country after country has… There will doubtless be those who will say that there is no reason to reassess the policies which underpin the free…UNIT 8. FINANCIAL MARKETS. THE BOND MARKET
A. TEXT
TRADING IN THE BOND MARKET
People and organisations wanting to borrow money are brought together with those having surplus funds in the financial markets. There are a great many different financial markets, each one consisting of… Generally, financial markets are classified as money or capital markets and primary or secondary markets.B. DIALOGUE
THE BOND MARKET
Foreigner: Financial markets are generally classified as money or capital markets and primary or secondary markets. Do you follow this… Russian: Yes, we do. But structurally we divide our financial market into a… F.: I see. My experience in Russia tells me that your investors prefer operations in the hard currency market to…VOCABULARY LIST
bond marketрынок облигаций maturity n срок долгового обязательства backv гарантировать, давать поручительствоEXERCISES
A. 1. What role do financial markets play? 2. In what ways do financial markets differ?Ex. 5. Sum up the content of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Russian: С моей точки зрения, мы вступили в очень сложный период развития рынка облигаций. Все более важную роль играют крупные институциональные… Foreigner. Besides, big investors have power to demand more transparency and… R.: Недавний финансовый кризис на рынках Азии оказал отрицательное воздействие на глобальный рынок ссудного капитала.…Ex. 7. Work on vocabulary and grammar.
bond, maturity, debt financing, equity financing, placement, surplus, issue,… b) Think of the verbs that are most commonly used with:D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:
a) to bring together b) capital
to classify people
to underwrite issue
to invest into debt financing
to speed up role
to raise use
to broaden real sector
to rely on financial instruments
to enhance placements
to issue bonds
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
C) Explain how the Eurobond Market operates.
The Eurobond Market is ... major source of corporate financing in ...… This market permits lenders to lend directly to borrowers across ... national borders.Ex. 9. a) Supply the prepositions where necessary.
B) Say what you have learnt about the debt market in India.
The door is slowly opening on India's debt markets. Foreign investors can now invest 100% of their Indian portfolios in corporate debt as against… The driving force ... India's debt market reforms is the need to raise capital… So the market is moving ... the right direction and bonds-not shares – are the hottest selling investments in India…B) Explain the essence of public debt management in France.
France (to begin) to modernize the management of its public debt in 1985, and… By virtue of its position in the French financial markets, the French Treasury (to initiate) a series of reforms over…Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences and present them in class.
C) Describe the problems the authorities are trying to solve in China.
The Chinese Bond Market China's government bond ______ , which is relatively new, is booming now. In July 1996 alone, some Rmb 220 billion…DISCUSSION
Ex. 12. a) Read the text.
B) Discuss the reasons which led to the creation of the UK debt market and its structural changes in the late 80s.
The UK Government bond market is generally the market of gilt-edged securities. These securities are considered to be very safe. The market origins go back to 1694 when the Bank of England was founded to… On 27 October 1986 the market was structurally reorganized. As a result of the "Big Bang" the market…Ex. 16. Scan the available financial papers and summarize the attitude of foreign investors towards Russian bonds placed abroad.
READING PRACTICE
Ex. 17. a) Look through the text below to say what types of securities are described in it.
B) Reread the text more carefully and explain how the US government uses debt instruments.
The US government relies heavily on debt financing. Since the 1960s, revenues… About two-thirds of the public debt is marketable, meaning that it is represented by securities that can be sold at…Ух. 18. a) Read the text below quickly to find the developments in the US bond market that occurred in the early 90s.
B) Reread the text more carefully to describe the changes in the Yankee offerings and the interests of US investors.
During the past six years, according to the Federal Reserve, foreign… Until recently, only the most creditworthy foreign names were able to tap the US bond market, the largest pool of…UNIT 9. FINANCIAL MARKETS. THE STOCK MARKET
A. TEXT
STOCKS AND MARKETS
Stock Markets are the means through which securities are bought and sold. The origin of stock markets goes back to medieval Italy.1 During the 17th… The popularity of transferable instruments as a means of finance continued to… The largest, most active and best organized markets were established in Western Europe and the United States. Despite…B. DIALOGUE
THE CORPORATE SECURITIES MARKET IN RUSSIA
Foreigner. What's your opinion of the present-day position of the corporate securities market in Russia? Russian: The market is still rather weak and sluggish. Compared with Western… F.: It's not surprising. The market, due to the situation in Russia, is not attractive to investors. Foreign investors…VOCABULARY LIST
origin n происхождение, (зд.) начало, зарождение principal adj главный intermediation n посредническая деятельностьEXERCISES
A. 1. What is the Stock Market? What contributed to the emergence and growth… 2. Where were best organized stock markets established?Ex. 4. Say in a few words what the main text is about. Use the opening phrases from Ex. 4 (Unit 1).
Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Foreigner. We know that the board of directors of your steel plant announced the decision to issue new shares. Why was the decision made? How much… Russian: Наша компания является вторым по величине (second largest)… F.: What rules will you have to comply with? Is the listing procedure complicated?Ex. 7. Work on vocabulary and grammar.
securities, market, equity capital, options, quotation; b) Think of word combinations with:Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
С) Name the problems of emerging markets mentioned in the text and say which of them are typical of Russia.
In 1990 the fastest rising stock markets in ... world were those emerging in the developing countries. There are now more than 50 stock exchanges in… It was once widely presumed that poor demand for securities would be the… Even if the emerging stock markets have some demand-side difficulties, ... more general, continuing and severe problem…B) Write down 3-5 questions about the text.
C) Describe the trends in the major equity markets mentioned in the text.
In return ... the use of their funds, investors in a corporation are issued… In 1980 the US equity market was the largest domestic equity market in the world and was three times larger than its…Ex. 10. a) Open the brackets putting the verbs in the correct form.
B) Describe the changes on the London Stock Exchange brought about by Big Bang.
The London Stock Exchange (LSE) (to be) the principal market for the trading of equities, other corporate securities and government debt in the… The London equity market (to have) the third largest turnover in the world,… Now it is a dealership market: the great majority of customer orders (to transact) with a market maker who quotes…Ex. 11. a) Fill each gap with a suitable word from the box below.
B) Sum up the text in 5-7 sentences and present your summary in class.
C) Say what you have learned about trading on the New York Stock exchange.
The New York Stock Exchange The New York Stock Exchange (NYSE) is the oldest and largest of the_______. It is a universal symbol of economic…DISCUSSION
Ex. 12. a) Read the texts and do the tasks below.
B) Describe the chief varieties of speculators on the stock exchange.
A) Bulls, Bears and Stags
The buying of something cheap at one time for the purpose of selling the same thing dearer at another time is speculation. Whilst in a sense all… A speculator may buy shares, for which he cannot or does not wish to pay at… Bears are pessimistic speculators who expect a fall in share prices. They therefore sell any shares they have now, and…B) Options and Short Selling
Not all stock market speculation takes the form of buying and selling stocks whose prices are likely to change. Options and short selling allow a… An option is a security that gives its holder the right, but not the… An investor anticipating a rise in a share can buy a "call" option which, for a specified period, gives him…Ex. 16. Go to the library and study regulations (constitutions and rules) that govern securities markets. Present your findings in class.
READING PRACTICE
Ex. 17. a) Look through the text below and say what the figures in the text stand for.
B) Reread the text carefully and explain what the Fourth Market implies and what prompted its emergence.
Until the 1970s the New York Stock Exchange required its member firms to trade… Until 1976 NYSE member firms were prohibited by Rule 394 from either acting as dealers in the third market or…B) Reread the text more carefully to find the answer to the question: What can guarantee the success of the issue?
The New Issue Market
The mere buying of securites traded on the Stock Exchange does not create new capital. The stock exchange does not itself issue new shares to the… The Market has no outward formal organization or fixed place of business.… Issuing houses have become very active in the New Issue Market recently. An issuing house is a financial firm…UNIT 10. INVESTMENT ACTIVITY
A. TEXT
INVESTMENTS
In economic science, investment is capital expenditure on physical productive assets, e.g. machinery, factory buildings, roads, bridges, houses, and… Real investments generally involve some kind of tangible asset. As a financial term investment embraces purchases of stock exchange securities or deposits of money in banks, building…B. DIALOGUE
INVESTMENT CLIMATE
Russian: How do you assess the investment climate in your country? Foreigner. As quite favourable. Foreign investments have been flowing into our… R.: Who invests capital in your country?VOCABULARY LIST
capital expenditure капиталовложения, вложение капитала physical productive assets материальные, производственные фонды real investmentинвестиции в реальный (основной) капиталEXERCISES
Ex. 1. Answer these questions: A. 1. What is investment?Ex. 4. Say in a few words what the main text is about. Use the opening phrases from Ex. 4 (Unit 1).
Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).
Russian: Известно, что ваше правительство успешно проводит политику… Foreigner: We look upon FDI as a major vehicle for the transfer of skills and diffusion of modern technology. Foreign…Ex. 7. Work on vocabulary and grammar.
a) Study the key words of the unit in the dictionary at the back of this book:
investor, investment, assets, capital, risk, call options, put options.
B) Think of word combinations with these nouns: investor, investment, accounts, securities, yield.
portfolio, intermediary, risk, loans, purchase, contributions, funds, money. … d) Match the verbs from (a) with the nouns from (b) below:Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
C) Say what advantages individuals have when they invest in investment companies.
Investment companies are ... type of financial intermediary. They obtain money… For an individual there are two advantages of investing in such ... companies instead of investing directly in the…B) Write down 3-5 questions about the text.
C) Explain how most dynamic institutional investors today – pension funds and mutual funds – work.
The most dynamic institutional investors today are pension funds and mutual funds. Pension funds are a relatively recent phenomenon, which emerged… Pension funds are retirement plans funded ... corporations or government… Mutual funds have been even more impressive than pension funds.Ex. 10. a) Open the brackets putting the verbs in the correct form.
B) Say what you think about the decision of the companies to invest in Russia.
Food Giants Build Local Yogurt Plants
Foreign oil companies may pull out of Russian projects and several automobile joint ventures have been postponed, but international food processing… Three major Western food producers – Germany's Ehrmann, the Netherlands'… "The August [Rouble devaluation] made us realize all the more how important to is to have our own production…State-owned Norwegian telephone company Telenor said Tuesday that it will_______a 25 per cent stake in Russian cellular phone provider Vimpelcom for $160 million.
"Russia is a _______ market for mobile telephony and an important part of Telenor's international growth strategy," Tormod Hermansen, president and CEO of Telenor, said in a statement. "Vimpelcom fits well with our existing Russian investments."
The_______would mark Telenor's entrance into the Moscow mobile phone market. It already owns stakes in the St. Petersburg mobile phone company North West GSE, Extel in Kaliningrad and Stavtelesot in Stavropol.
The companies said the $160 million will be_______to develop Vimpelcom's cell phone licenses, fiber optic network, Internet services and other telecommunication_______ "We believe that the infusion of capital into the company at this time will_______the company's competitive position in the Russian cellular market, Vimpelcom's President said in a statement.
Under the terms of the deal, Vimpelcom will hand over a 25 per cent plus one share stake to Telenor.
Vimpelcom said it expects to________from Telenor's experience in penetrating and developing the global telephone market, and the Norwegian provider will in return get access to the Russians' extensive engineering expertise.
Vimpelcom, the first Russian firm to be listed on the New York Stock Exchange in 1996, posted a net profit of $61 million on turnover of $306 million last year.
The company, however, is suffering as the financial crisis shrinks its customer base.
The company, though, remains a favorite with stock analysts, who ________ it as one of the most transparent and well-managed in Russia.
Vimpelcom had 110,140 subscribers in the Moscow area at the end of 1997, the most recent figures available.
Telenor is a ________ of fixed, mobile, satellite and Internet services and is based in Oslo, Norway. Telenor has 1.5 million cell phone clients in Norway, or 75 percent of the market.
Telenor also operates mobile telephone networks in a number of countries including Norway, Germany, Ireland, Greece, Bangladesh and Ukraine. It came to Russia shortly after the first mobile phone license was granted to the Leningrad region in 1991.
The deal between Telenor and Vimpelcom is subject to the ________ of Vimpelcom shareholders and Russian federal authorities, including the State Anti-Monopoly Committee, the Federal Securities Commission and the Central Bank.
Vimpelcom said it plans to hold an extraordinary shareholders' meeting in late January at which its ________ of directors will recommend the terms of the alliance.
Words you may need:
staken доля
CEO (Chief Executive Officer)главный исполнительный директор (корпорации, компании)
infusionn вливание
postv делать проводку, заносить в бухгалтерскую книгу
shrinkv (зд.) уменьшать, сокращать
DISCUSSION
Ex. 12. Read and discuss the texts.
A) Say what hinders the influx of foreign capital to Russia.
Foreign investments are coming to Russia as direct investments, i.e. financial participation in the creation of joint ventures and fully… However, the influx of foreign capital is still insufficient. The process is… Russian investment industry is developing rather rapidly. Russian investors are beginning to play a prominent role in…Superprofitnсверхприбыль
strategies tailored (to)стратегия, разработанная с учетом определенных требований
influxn приток
hindervзатруднять
mutual fundвзаимный фонд
valuationn оценка
b) Discuss and compare the investment climate in Brazil and in Great Britain,
B) Brazil Attracts Foreign Investors
Increasing numbers of foreign investors are looking toward Brazil as their gateway into the Latin American market. As a result, there has been a… Trade between the US, however, has deteriorated, with accusations that US…C) Investment in the UK
In recent decades the UK has invested a smaller share of GDP than other industrialised countries – around 18% of GDP, compared with the OECD average… Business investment has been helped by the high level of inward investment. In… Words you may need:Ex. 13. Read the dialogue, sum up its content and act it out.
Foreigner. Speaking about investment you often say "capital… words interchangeably?Ex. 16. Scan local newspapers to find examples of FDI and portfolio investments. Comment on the benefits of the investment projects for the local business and the country on the whole.
READING PRACTICE
Ex. 17. a) Look through the text below to find the explanation why administrators of pension and endowment funds are referred to as investment engineers.
B) Reread the text more carefully and explain how administrators of funds make decisions about choosing the assets to invest.
Administrators of pension and endowment funds might be surprised to find… When plan sponsors choose to invest in a particular asset class, especially a well-defined and liquid one such as the…Ex. 18. a) Read the text below quickly to find what investment trusts are referred to.
B) Reread the text more carefully to find parts of the text describing the specific features of the funds.
Small shareholders who do not have enough money to invest in a wide-range… Investment trust is a public corporate body which invests funds in a wide range of stocks and shares, thus…UNIT 11. FOREIGN EXCHANGE MARKET. GLOBAL FINANCIAL MARKETS
A. TEXT
TRADING IN THE FOREIGN EXCHANGE MARKET
Any one country's currency is a legal tender only within its national boundaries. To trade beyond these boundaries involves exchange of monies.… Currencies can be bought or sold in the Foreign Exchange Market. The Foreign… The Market performs two major functions: it facilitates the foreign exchange needs of exporters and importers, and it…B. DIALOGUE
CORNERSTONE OF THE GLOBAL FINANCIAL MARKET
Russian: As far as we know, the cornerstone of the global financial market is the Foreign Exchange Market. In this connection, how is it developing?… Foreigner. I would stress, first of all, that the FOREX is really an integral,… R.: The market has no one centralized location, does it?VOCABULARY LIST
legal tender законное платежное средство national boundaries государственные границы beyond prep за пределамиEXERCISES
A. 1. Why is exchange of currencies necessary? 2. What makes exchange of currencies possible?Ex. 4. Say in a few words what the main text is about. Use the opening phrases from Ex. 4 (Unit 1).
Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).
British economist: Your participation in the world financial markets is… Polish economist: Экономические реформы в нашей стране привели к возникновению у нас рынка иностранной валюты,…Ex. 7. Work on vocabulary and grammar.
option, rate, transaction, currency, quotation; b) Think of the verbs that are most commonly used with:D) Make your own sentences with any five word combinations from (b) and (c).
e) Match the verbs from (a) with the nouns from (b) below:
a)to facilitate b)needs
to perform trade
to fix legislation
to enhance functions
to identify opportunities
to seek negotiations
to join profits
to liberalize financial community
to hold exchange rate
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
C) Say what exchange rate policies are practised by different countries.
In ... late 19th century ... major trading nations fixed their currencies in terms of gold. Exchange rates were therefore fixed and these countries… In July 1944, international negotiations were held at ... Bretton Woods, New… The postwar system was designed to be one of ... fixed but adjustable exchange rates. Member nations of ... IMF were…Ex. 9. a) Supply the prepositions where necessary.
B) Write down 3-5 questions about the text.
C) Describe the components of the global financial markets.
The global market for finance encompasses a complex web of financial… The cash and derivative instruments that comprise global financial markets rest ... four cornerstones: 1) foreign…Ex. 10. a) Open the brackets putting the verbs in the correct form.
B) Explain what are hedging techniques mentioned in the text.
In general, hedging is a technique of insurance against loss from future price… Hedging is widely applied in commodity and financial markets, as well as in international trade. Exchange rates…Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences. Present your sentences to the class.
C) Describe the basic functions of the Eurocurrency markets.
| function | conducted | restrictions |
| fry | need | organized |
| borrow | offer | perform |
| deal | leading | client |
| bank | borrowers | operating |
The Eurocurrency Market
One of the most well-developed sectors of the Global Financial Market is the Eurocurrency Market. The Market refers to funds channelled via… The Eurocurrency markets_________the short to medium term debt required by… The Eurocurrency market is therefore_________and sustained by the large international banks and operates at two…DISCUSSION
Ex. 12. a) Read the text and single out its main facts.
B) Present them in a short review.
C) Discuss the problem raised in the text, offer your solution to the problem.
The globalization of the world economy and the growing efficiency of capital… Money laundering and measures to counter it have therefore become the focus of intense international attention in…Ex. 16. Find a table of foreign exchange rates in a daily paper. Which currencies have a higher value relative to the Rouble? How does it affect the situation?
READING PRACTICE
Foreign Exchange Swaps Swaps are transactions in which two parties swap financial assets by linking a foreign exchange transaction in cash to…What does the price of a foreign exchange option depend on?
What are the prospects for the option markets?
Options as a financial instrument have a reasonably short history in financial… There are three different types of users of foreign exchange options: the corporate treasury, the fund manager, and…UNIT 12. FINANCIAL MANAGEMENT
A. TEXT
FINANCE FUNCTION
Any business – whether large or small, profit-seeking or not-for-profit – has important financial concerns: How to get the funds needed to run the business on favourable terms and how to… In this connection modern businesses have financial managers to look after these problems, whose major objective is to…B. TEXT
FINANCIAL RATIOS
A financial ratio is a relationship between particular groups of assets or liabilities of an enterprise and corresponding totals of assets or… A leading example is the price/earnings ratio which is the ratio of the… Another is the ratio of equity to debt finance (gearing ratio) within a company's overall capital structure.C. DIALOGUE
RATIO ANALYSIS
Russian: Are there any guidelines which enable the businessman to conduct his affairs efficiently and profitably and to compare his company's… American: Yes, there are. One of the major tools is ratio analysis. Ratios… R.: What are the most commonly used ratios?VOCABULARY LIST
Finance functionорганизация финансовой деятельности concern n (зд.) интерес, озабоченность maximize v довести до максимумаEXERCISES
Ex. 1. Answer these questions: A. 1. What financial concerns face every enterprise?Ex. 5. Sum up the content of the dialogue. Use the phrases from Ex. 5 (Unit 1).
Ex. 6. Read the dialogue, translate the Russian remarks into English and act it out.
Foreigner. What funds are most typically generated at enterprises? Russian: Для осуществления своей деятельности предприятию необходимы основные… F.: What resources can be used to acquire fixed and working capital?Ex. 7. Work on vocabulary and grammar.
assets, exchange rate, interest rate, management, return, value, flow; b) Think of the verbs that are commonly used with:Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the texts.
C) Say in what activities financial managers are involved.
a) Financial Management explains how ... financial managers can help maximize the value of their firms by making better decisions in such areas as… Financial managers also have ... responsibility for deciding the credit terms… A successful firm usually has ... rapid growth in sales, which requires investments in ... plant, equipment and…B) Mergers and Acquisitions
Profitable growth constitutes one of... prime objectives of most of the business firms. It can be achieved "internally", either through… If ... enterprise grows "internally" it can retain control with… Mergers are typically classified into ... horizontal mergers (when two or more corporate firms dealing in ... similar…B) Say what classes of shares are usually issued by companies and what rights they give their holders.
Financial capital includes the liquid assets of a company as opposed ...… The most usual classes of share ... which the capital of a company can be divided are preference, ordinary, and…Eх. 10. a) Put the verbs in brackets in the correct form.
B) Describe the development of financial management.
Prior to the 1930s the field of financial management basically (to confine) to descriptive discussions of the various financial markets and the… With years this field of finance (to undergo) a number of significant changes… During the 1950s, for example, financial management (to expand) to include uses of a firm's funds; application of…Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences and present your summary in class.
C) Explain the differences between macroeconomics and microeconomics.
Contemporary financial managers should be familiar with two areas of economics – macroeconomics and ... Macroeconomics is concerned with the over-all institutional environment in… Microeconomics deals with the economic decisions of_______ and organisations. It concerns itself with the…DISCUSSION
Ex. 12. a) Read the texts.
B) Say what you think about the conflict between managers and shareholders.
A) Corporate Governance
The financial manager's duties include different tasks aimed to maximize the shareholders' wealth. It has been observed, however, that in practice not all management decisions… In other words, there often is a divergence between the shareholder wealth maximization goal and the actual goals…B) Investment Management
Investment management relates to the selection of assets in which funds will be invested by a firm. The assets which can be acquired fall into two… Nowadays investors face a lot of choices. Along with stocks and bonds of large… When making decisions with regard to what marketable securities to invest in, how big the investment should be, and…Ex. 13. Read the dialogues, sum up their content and act them out.
A) Investment Decision Making
Financial manager. Our company is working on an investment project. What do you think we should take into account in our work? Consultant: First, I'd like to know something about your project. Could you… P.M.: Yes, sure. The project is aimed at investing in fixed assets. The market research we've carried out has revealed…B) Investment Project Appraisal
P.M.: How can an investment project be evaluated? Con.: There are different techniques. Most common today are UNIDO techniques… P.M.: What criteria should be used in our case? What do they imply?Ex 16. While reading business news look for items about firms that are losing money and firms that are doing well. Make your conclusions about the financial management of the firms. One of the conclusions is likely to be that the key to success is upgrading professional skills of the employees. What skills are likely to be in demand in the next five years – computer literacy, knowledge of foreign languages, anything else?
There are a lot of jobs in finance and accounting for the simple reason that all types of organizations have financial needs. What careers in finance will be attractive: economists, bank managers, bank tellers, securities sales workers, insurance agents, brokers, actuaries, underwriters?
READING PRACTICE
Capital Structure and Cost of Capital The capital structure refers to the weight which different types of capital have in the total capital employed. The…What happens after a winding-up order is granted by the court?
If a company is unsuccessful in its operations, or if for any other reason it… Voluntary liquidation may be brought about by the shareholders passing a resolution directing the company to go into…Ex. 19. Read the text quickly to find the part of the text explaining how managers can solve the problem of a cash shortfall.
The concept of cash flow is one of the central elements of financial analysis,… Only cash can be spent.UNIT 13. ACCOUNTING
A. TEXT
ACCOUNTING PRINCIPLES AND CONCEPTS
The accounting system in any given country is one of the key elements of the economic system. It is determined to a significant extent by the level… The most important theoretical concept of the Anglo-American accounting may be… Accounting is used to describe the transactions entered into by all kinds of organizations.B. DIALOGUE
ACCOUNTANCY IN A FREE-MARKET ECONOMY
Russian: What is the role of accountancy in a free-market economy? American: Well, in a free-market environment, accounting provides sort of a… R.: Would it be correct, in that case, to sum up the basic functions of accounting in a market economy as measuring…C. DIALOGUE
PUBLIC AND PRIVATE ACCOUNTANTS
Russian: I'm sure you know that we are engaged in developing the accounting profession in our country at the moment. In this context we would like… American: They can be classified by the type of organization they work for.… R.: The changes in our economy along market lines have given a boost to the creation of public accounting firms. What…Notes
1 in the true sense of the word –в истинном смысле слова
2 at a point of time –в определенный период времени
3 ... will hold at all times –... остается всегда справедливым
4 ... sort of a vehicle for transmitting information –некое средство передачи информации
5 all those concerned –все заинтересованные лица
6 the business in question –фирма, о которой идет речь; (зд.) данная фирма
7 It's worth while the effort. –Это стоит затрачиваемых усилий.
VOCABULARY LIST
to a significant extent в значительной степени phase n стадия, фаза capture n (зд.) получение (информации)EXERCISES
A. 1. What role does an accounting system play in an economy? 2. Into what phases is accounting broken down?Ex. 4. Say in a few words what the main text is about. Use the opening phrases from Ex. 4 (Unit 1).
Ex. 5. Sum up the content of the dialogues. Use the phrases from Ex. 5 (Unit 1).
Foreigner. As far as I know, in the past the major function of your… Russian: Политика экономических реформ вызвала необходимость создания эффективной системы бухучета. В этом направлении…Ex 7. Work on vocabulary and grammar.
balance sheet, account, depreciation, cost, expenses, assets, loss; b) Think of the English synonyms to these Russian verbs: относить (на), отражать (в учете), учитывать;Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
C) Explain what information must be disclosed in accounting records. Say what you have learned from the text about the UK rules for the preparation of accounting records.
Accounting Records
Every company must keep accounting records sufficient:
• to show and explain ... company's transactions;
• to disclose ... financial position of the company at any time with reasonable accuracy; and
• to enable the directors to ensure that ... annual accounts comply with... statutory requirements.
The records must contain entries of daily receipts and payments,... record of assets and liabilities and, where the business involves dealing in goods, stocktaking records and details of goods bought and sold.
The directors of every company have a duty to prepare annual accounts. The accounts must be made up to ... company's accounting date (its financial year-end) and in accordance with the specified accounting principles. In ... UK, for example, they include ... following:
• The company is presumed to be ...going concern.
• Accounting policies are applied consistently from ... year to year.
• The amount of any item is determined on ... prudent basis.
• The accounts are prepared on ... accrual basis.
Details of any departure from these principles, the reasons for it, and its effect must be explained in ... note to the accounts.
In the United Kingdom company accounts are almost invariably prepared using the historical cost accounting convention, with or without modification to reflect changes in ... value of certain assets. However, ... Company Act 1985 does provide alternative accounting rules which permit companies to recognise ... full impact of inflation and changing prices in their accounts.
Along with ... rules applying to the preparation of accounts, there is ... overriding requirement that the balance sheet must give ... "true and fair" view of the state of affairs of the company and that... profit and loss account must give ... "true and fair" view of the company's profit or loss.
Until 1992, cash basis accounting was ... only method recognized in ... Russia. Although the new accounting regulation permits the administration to select ... method of recognizing revenue and expenses,... traditional method is still dominant.
Words you may need:
accounting recordsбухгалтерские счета, бухгалтерская отчетность
stocktaking recordsкнига учета запасов
accounting dateотчетная дата
accrual basisпринцип начислений
departuren (зд.) отклонение
Companies ActЗакон о компаниях
overridingadj первостепенный
Ex. 9. a) Supply the prepositions where necessary.
B) Explain the objective of Financial Statements and say what ensures usefulness of information disclosed in them to the users.
The objective of financial statements is to provide useful information ... users. Among the users are present and potential investors, lenders,… The objectives of financial statements are defined ... the needs of users. In… Such information is useful to a wide range ... users in making decisions and is necessary to keep management…Ex. 10. a) Open the brackets putting the verbs in the correct form.
B) Say what is a Chart of Accounts in Russia and what it provides for.
In the West each company (to have) a certain freedom in the design of its own set of accounts so as to reflect the nature of its business and the… The first uniform Chart of Accounts (to appear) in Russia in the 1920s. It (to… The Chart (to provide) for the following: an interrelated classification, grouping, and generalization of information…Ex. 11. a) Fill each gap with a suitable word from the box.
B) Sum up the text in 5-7 sentences and present your summary in class.
C) Name the most important events in the development of the accountancy profession in the world.
Accountancy Profession The organization of the accountancy profession dates_______to January 1853 when eight accountants in Edinburgh,…DISCUSSION
Ex. 12. a) Read the texts and single out the main facts.
B) Present them in a short review and compare the information and viewpoints in Text (a) and Text (b).
The year 1991 was crucial in accounting development in Russia due to the following three events: a) Publication of the new Chart of Accounts; b) Production of a new set of financial statements similar to those used in Western accounting;IAS – international accounting standards
Ex. 13. Read the dialogue, sum up its content and act it out: Accounting MethodsDo many applicants stand a good chance?
READING PRACTICE
Ex. 17. a) Study the Balance Sheet and the Income Statement of a British company given below:
Balance Sheet
b) Read the text that follows to find the answers to the following questions: • What financial document presents the position of the enterprise?A. BALANCE SHEET
The position of the enterprise is presented in the balance sheet. That statement shows resources and the claims to or interests in them and provides… The balance sheet includes the following elements:UNIT 14. AUDITING
A. TEXT
PERFORMING AN AUDIT
Auditing is a process in which an independent accountant-auditor examines a firm's accounting records and financial statements and offers an opinion… There are different types of audits, for example, financial statements audits,… The accountancy profession has built up a significant amount of expertise in performing financial statements audits. …B. DIALOGUE
AUDITING IN RUSSIA
Englishman: In most industrialized countries audit is a statutory requirement applying to limited companies. Are there any similar regulations in… Russian: The transition to a market economy has led to the establishment of… En.: As far as I know, you didn't use to have auditing firms in the past. Are there any auditors now?VOCABULARY LIST
A. auditing n аудит auditor n аудитор examinev проверять, проводить ревизиюEXERCISES
Ex. 1. Answer these questions: A.1. What is auditing?Ex. 4. Say in a few words what the main text is about. Use the opening phrases from
Ex. 4 (Unit 1).
Ex. 5. Sum up the content of the main dialogue. Use the phrases from Ex. 5 (Unit 1).
Foreigner. As far as we know, you are Russia's leading provider of accounting… Russian: Да, вы правы. Наша фирма была основана еще в 1989 году. Все эти годы нам пришлось упорно работать, так как мы…Ex. 7. Work on vocabulary and grammar.
audit (ing), auditor, auditor's opinion, auditor's report, records; b) Think of the verbs that are most commonly used with:D) Think of the English words for the Russian соответствовать, отражать
в отчетности;
E) Make your own sentences with the verbs from (c) and (d).
f) Match the verbs from (a) with the nouns from (b) below:
a) to share b) certificate
to take assumption
to foster responsibility
to seek faults
to submit services
to give advice
to make point of view
to obtain financial statements
to find evidence
to render standards
Ex. 8. a) Supply the articles where necessary.
B) Write down 3-5 questions about the text.
C) Say what you have learned from the text about government auditing in
Sweden.
The Swedish National Audit Office (SNAO) is ... independent institution for central government auditing and accounting in ... Sweden. The main task… The government and ... Parliament use the information of the SNAO as a basis… In addition, ... SNAO establishes ... norms, develops auditing methods, and offers training and advice on issues…Ex. 9. a) Supply the prepositions where necessary.
B) Say what the auditors checked during the audit in accordance with the instructions given to them.
Auditors' Report
We have examined the books, accounts and vouchers relating the six. months ended 30th September ... (year) which were presented ... us. We have made… We have checked all cash and bank payments ... the receipts and have to report… All invoices ... respect of goods purchased and expenses incurred have been examined with the appropriate analysis of…B) Discuss the content of the article.
It is a universally accepted truth in Russia that the heads of many public… Over the first 10 months of this year, the Accounts Chamber, a watchdog of the State Duma, (to reveal) that nearly 1.8…Ex. 11. Fill each gap with a suitable word from the box. Sum up the text in 5-7 sentences and present your summary in class.
Independent Auditors' Report to the Board of Directors and Stockholders of_______Company We have audited the consolidated balance sheets of ______ Company and Subsidiaries at December 31, ... and ... (years)…DISCUSSION
Ex. 12. a) Read the texts and do the tasks that follow.
B) Describe the two main functions of auditing. Discuss how public accountants (auditors) and government auditors perform these functions. Explain the importance of internal auditing.
a) Audit is an examination of the records and reports of an enterprise by accounting specialists other than those responsible for their preparation. Public auditing by independent accountants has acquired professional status and become increasingly common with the rise of large business units and the separation of ownership from control. The public accountant performs tests to determine whether the management's statements were prepared in accordance with acceptable accounting principles and fairly present the firm's financial position and operating results. Such independent evaluations of management reports are of interest to actual and prospective shareholders, bankers, suppliers, lessors, and government agencies. Generally speaking, auditing has two functions: to reveal undesirable practices and, as far as possible, to prevent their recurring in the future. A relatively new type of auditing is internal auditing. It is designed to evaluate the effectiveness of a business's accounting system. Perhaps the most familiar type of auditing is the administrative audit, or pre-audit, in which individual vouchers, invoices or other documents are investigated for accuracy and proper authorization before they are paid or entered in the books.
In English-speaking countries, public auditors are usually certified, and high standards of professional qualification are encouraged.
Most countries have specific agencies or departments charged with the auditing of their public accounts.
Taxpayers in all countries are interested in the sound management of the collected revenue, they also want to know whether or not the executive branch of government is complying with the law, especially in the area of public finance.
Government auditors are working for sound, economical and efficient financial management, addressing the key problems in the field of public sector auditing, like strengthening the institutions that oversee financial management, changes in the scope and methodology of government auditing, ability to conduct performance audits in public enterprises, strengthening internal auditing in spending units, ex-post external audits of government activities, budget efficiency problems, performance of expenditure programmes.
The advantages accruing from an audit are obvious, taking into account the complexity of present-day commerce and business.
c) Read the document below and discuss the results of the audit:
| Independent Auditor's Report Dear Sirs, We have audited the accompanying general purpose financial statements of Cobb County, Georgia, and the combining, individual fund and account group financial statements of Cobb County, Georgia as of and for the year ended September 30, ... These financial statements are the responsibility of Cobb County, Georgia's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of Cobb County, Georgia at September 30.....and the results of its operations and the cash flows of its proprietary fund types for the year then ended, in conformity with generally accepted accounting principles. Also, in our opinion, the combining, individual fund and account group financial statements referred to above present fairly, in all material respects, the financial position of each of the individual funds and account groups of Cobb County, Georgia, at September 30, ..., and the results of operations of such funds and the cash flows of individual proprietary funds for the year then ended, in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole and on the combining, individual fund and account group financial statements. The accompanying financial information is presented for purposes of additional analysis and is not a required part of the financial statements of Cobb County, Georgia. The information has been subjected to the auditing procedures applied in the audit of the general purpose, combining, individual fund and account group financial statements and, in our opinion is fairly stated in all material respects in relation to the financial statements of each of the respective individual funds and account groups, taken as a whole. Atlanta, Georgia, January 12,... |
Ex. 13. Read the dialogue, sum up its content and act it out:
Foreigner. As far as I know, when you started your economic reforms some people believed that under market conditions the controlling function of the state would be losing its importance. Has this idea proved to be true?
Russian: It's clear now that the idea was erroneous. Results of audits and inspections reveal lots of breaches of the tax law, misuses of public money, misappropriations and numerous cases of budget funds squandering.
F.: How can you account for so numerous financial infringements in Russia now?
R.: The situation we are having now is a consequence of a weak legal base, shortcomings in running the country's finances, absence of a legal base for an active financial control.
F.: What infringements are most frequent?
R.: Well, first of all, I would single out diverting of money away from the stated purposes into lucrative deals for personal gain. I mean funds allocated as returnable resources and budget resources allocated as the state support for different branches of economy. Then I would mention transfer of state funds to commercial units, embezzlements, defalcations, and misappropriation of funds.
F.: We have heard about scandals in your country when managers illegally placed so-called "free money" in commercial banks and used the profit made to satisfy their own needs, like buying cars and real estate, going abroad on holiday and so on.
R.: That's true. In some cases, managers underreport their taxable profit, do not disclose income in accounting documents, start business operations without licenses, avoid paying excise duties, etc. There is no legally established responsibility for the misuse of budget funds, which causes irresponsibility, wastefulness, and criminal actions on the part of senior officials and managers. Do you have similar problems?
F.: Well, yes, we have, but on a smaller scale. There is an efficient system of government auditing in our country. We examine accounting and performance of all government agencies and public corporations. What are the functions of government auditing in Russia?
R.: Generally, we focus on compliance of government agencies, juridical persons with financial legislation of the Russian Federation, we audit execution of the federal budget and extra-budget funds, control money circulation, use of credit resources, external and internal state debt, state reserves, safe keeping and use of state property. We are also responsible for many other things.
F.: What measures do you take when you detect financial misdeeds? Do you hand your reports to investigating authorities?
R.: Yes, we do. Investigating authorities institute proceedings on the basis of our reports. We must work to improve the system of financial control in Russia because it does not fully meet the present-day requirements.
F.: You mean the vigorous emergence of the private sector?
R.: Yes, the development of market relations and public and private finances.
Words you may need:
squanderingn проматывание (средств)
infringementn нарушение (законов)
wastefulnessn расточительность
investigating authoritiesследственные органы
to institute proceedingsначинать судебное разбирательство
Ex. 14. Give extensive answers to these discussion questions:
1. What is auditing?
2. When did auditing appear?
3. Do auditors perform a useful service to the community?
4. How do auditors conduct audits?
5. What is the aim of audits?
6. Is it difficult to become a practising auditor? Are professional qualifications high?
7. What is government auditing?
8. Are there any international professional organisations of auditors?
9. What bodies in Russia perform government auditing?
10. Do many young people want to make a career in auditing? Why?
In order to get prepared for participation in the class discussion of the questions, write several paragraphs on the following:
a) Types of audit mentioned in this unit.
b) What are government auditors responsible for?
c) What do professional audit organizations do for auditors?
Ex. 15. Prepare a short talk on the following:
a) If you have a job with an auditing firm (or want to be an auditor), what sort of personal characteristics do you think are most important for auditors? Compare them with the personal features necessary for other financial professions.
b) If you have a job with an auditing firm, say how the Chamber of Auditors provides you with information about possibilities to upgrade professional skills (courses being offered by different organizations). Is the information, if any, accurate, timely, complete and relevant?
c) How is the work of auditors monitored?
Ex. 16. Talk to professional auditors to find out what they think about their professional organizations in Russia. Consider different aspects of their activities.
READING PRACTICE
Ex. 17. a) Look through the text below to find the names of bodies responsible for continuing professional education in the UK.
B) Read the text carefully to say what CPE implies.
The Audit Registration Committees of the Institutes of Chartered Accountants… Principals and employees must keep up-to-date with changes in company law, accounting and auditing standards, etc.Ex. 18. a) Read through the text for general information.
B) Reread the text more carefully and pick out information about the JMU.
The EU 8th Company Law Directive set out the requirements for each member state to have a common minimum regulatory system for auditors of limited… In 1990 the Department of Trade and Industry granted the status of Recognized… Specifically, this work is done by Audit Registration Committees which register auditors and then organise…BANKING CORRESPONDENCE
Most correspondence in banking is done through letters and telexes, fax messages and SWIFT ones. Special forms are also widely used. Here is a layout of a typical letter:To announce объявлять
effectiveвступающий в силу to be composed ofсостоять из divisionотделение (управление)DICTIONARY OF KEY WORDS
contra account["kOntr@ @'kaunt] контрарный счет memorandum accountзабалансовый счет to debit an accountдебетовать счетDirect investment прямые инвестиции
fixed capital investmentвложения в основной капитал foreign investmentиностранные инвестиции government investmentправительственные капиталовложенияContents
ПРЕДИСЛОВИЕ.. 2 UNIT 1. ECONOMIC ENVIRONMENT.. 4– Конец работы –
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