PRINCESS ATTRACTS INTEREST of ARCON
Ø 1) Study the heading and the words below and guess what the article is about.
Ø 2) Translate he article into Russian and answer the questions:
a)What are Arcon International and Princess Resources?
b)What does Arcon International going to do?
c)In case it is performed, what will the “strategic investment” mean for Arcon International?
Arcon International has said it intends to subscribe for a $4.5 million debenture in the Canadian exploration company, Princess Resources, which is listed on the Vancouver stock exchange.
In addition, Arcon has been granted a warrant entitling it to purchase 41.4 million shares in Princess. If the company decides to convert the debenture and exercise the warrant, it will own 49 per cent of Princess.
The debenture permits Arcon to subscribe for a minimum of $3 million or up to a maximum of $4.5 million.
The company describes the move as a “strategic investment” giving Arcon a minimal cost entrance into established mining districts in China, Tanzania and Zambia.
“Princess has identified and proved significant potential for gold, silver, lead, zink, copper and diamond mineralization within its exploration licenses in China, Tanzania and Zambia,” said Arcon chief executive, Mr. Tony O’Reilly Junior last night.
Ø 3) Read the article paying special attention to names of the countries and figures.
ACCOUNTANCY FIRMS TO MERGE
Ø 1) In the article the writer uses these words and phrases: accountancy firm Farrell Grant Sparks, a general practice firm, personal and corporate tax matters, a niche market, tax-based financing. What do they mean?
Accountancy firm Farrell Grant Sparks has announced a merger with Eamonn Griffin & Company. Griffin is a general practice firm which specializes in personal and corporate tax matters. Over the years it has developed a niche market in relation to tax-based financing of property, computer software and films.
Ø 2) Answer the questions:
a)What did accountancy firm Farrell Grant Sparks announce?
b)What does Eamonn Griffin & Company specialize in?
c)What is the main accomplishment of Eamonn Griffin?
d)What kind of company is Griffin?
HISTORY OF ACCOUNTING
Ø 1) Before reading the text answer the questions:
a) What is accounting? Choose from the following:
- a system of government
- the work of someone who prepares financial records and methods they use
- a way of calculating personal income
- attention in mass media.
b) When did accounting begin?
Accounting has a history which reaches back to the beginning of civilization, and archaeologists have found accounting records which date as far back as 4,000 B.C., well before the invention of money. Nevertheless, it was not until the 15th century that the separation of the owner’s wealth from the wealth invested in a business venture was recognized as necessary. This arose from the use of paid managers or stewards to run a business who were required to render accounts of their stewardship of the funds and assets. Consequently, the “capital” invested in the business represented not only the initial assets of the business but a measure of its indebtedness to the owner. This principle remains enshrined in modern financial accounting and the owner is shown as entitled to both the “capital” which he has invested in the business, and also the profits which have been made during the year. The accounting and legal relationship between the business and its owner is shown on the balance sheet, which states the firm’s assets and liabilities and hence indicates its financial position and wellbeing.
The practice of keeping daily records of accounting events in a diary or rough book dates from the early history of accounting. The practice of keeping a daily journal was recommended by Paciolo in 1494 for the purpose of enabling the businessman to check daily the records kept by his clerk. Once agreed, they could be entered into the ledger. It became a golden rule in accounting that no entry should appear in the ledger which has not first been entered in the journal.
Both trade and accounting existed before the invention of money, which we know began to circulate in the 6th century B.C. Its role as a common denominator, by which the value of assets of different kinds could be compared, encouraged the extension of trade. By Roman times, money had become the language of commerce, and accounts were kept in money terms. Hence, there is an accounting tradition which dates back some 2,000 years of keeping the records of valuable assets and of transactions in monetary terms. It is not surprising; therefore, that accounting information today reflects the long-time practice of dealing only with matters capable of expression in money.
Ø 2) Answer the questions:
a)What was recognized as necessary in accounting in the 15th century?
b)What was the duty of a paid manager who ran a business?
c)What main principle still remains in modern financial accounting?
d)How is the relationship between business and its owner shown?
e)What does the balance sheet show?
f)What is the golden rule in accounting?
g)What terms have the accounting been kept in during the last 2,000 years?