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CHAPTER 1 ACCOUNTING AND FINANCE IN THE CHANGING WORLD
1.1 WRITING SKILLS – REFRESHER COURSE- WRITING A SUMMARY
Wat is een summary a short, clear description that gives the main
facts or ideas about something
Waar moet je op letten bij het maken van een - Eigen woorden gebruiken
summary - Selecteer de meest essentiële
informatie
- Intro- midden – slot
- Objectief
- Linking words gebruiken
- Refereer naar het origineel artikel
Linking words: agreement (akkoord) - Moreover
- Furthermore
- Additionally
Linking words: consequence (gevolgen) - Therefore
- As a result
- Consequently
- Thus
Linking words: contrast - However = des al niet te min
- Nevertheless
- Nonetheless
- Although
- Albeit = al waren het
- On the other hand
Linking words: examples (vb) - For example
- In other words
Linking words: conclusion (conclusie) - In conclusion
- In brief
- In short
1.2 TYPES OF ACCOUNTING
bookkeepers they record transactions in boekhouders
purchase ledgers and sales
ledgers
Management accountants have to verify that a company’s Management accountants
=CFO (chief financial officer) published financial statements =CFO (financieel directeur)
give a true and fair view of its
profit, its assets and its liabilities
Senior accountants at financial use accounting data to make Senior accountants op het
controller and director level decisions about how the niveau van financieel
business should proceed controleur en directeur
Internal auditing is about making sure that the Interne accountants
management has sufficient
control over what is going on
in the company
1
, External auditors have to verify that a company’s Externe accountants
published financial statements
give a true and fair view of its
profit, its assets and its liabilities
Assets Activa
liabilities passiva
ledger grootboek
leverage Vreemd vermogen
1.3 INTERNATIONAL ACCOUNTING
Plc = public limited company
= nv
ltd = limited liability
= bv
gdp = gross domestic product
= bbp
GAAP Generally Accepted Accounting
Principles
- going concern principle
- the prudence principle
- the matching principle
- the consistency principle
USA
Going concern principle When preparing accounts, one must assume
that the enterprise will still be viable in the
years to come. Practically all accounting items
are affected by this assumption, such as the
carrying value of fixed assets and inventories,
and the ability to repay debts and other
obligations.
The prudence principle What value should be given to the numbers in
the accounts? It is normal to act pessimistically,
so that profits and assets are not overstated,
and expenses and liabilities realistically valued.
The matching principle This principle is concerned with the timing of
the recognition of transactions in the accounts.
Items are recorded when the income or
expense arises, and are not dependent on the
movement of cash.
The consistency principle Accounts should be produced using the same
principles from one year to the next. Deviations
(=afwijkingen) from this principle must be
noted, and the effects on the accounts shown.
2
, IFRS International Financial reporting Standards
International Financial Reporting Standards
(IFRS) are a set of accounting rules for the
financial statements of public companies that
are intended to make them consistent,
transparent, and easily comparable around the
world.
European Union
IASC International Accounting
Standards Committee
The IASC Board announced a substantial body
of Standards, Interpretations, a Conceptual
Framework, and other< guidance that was
adopted directly by many companies and that
was adopted directly by many companies and
that was looked to by many national accounting
standardsetters in developing national
accounting standards.
1.4 READING – ACCOUNTING AND FINANCE
UNIT 1: DEVELOPING GLOBAL PROFESSIONALS
Forensic accounting When a company’s financial Forensische boekhouding
records are officially checked in
order to find out if there has
been any illegal activity
Insolvency An situation in which a person Insolventie
or a company does not to have
enough money or assets to pay
their debts
Tax accounting Preparing a person’s or Fiscale boekhouding
company’s financial
information in order to
calculate the proportion of
their profit which they must
pay to their government
auditing 1 An official examination of a audit
person’s or organisation’s
accounts by an expert, to
check that they are true and
honest
2 an examination of an
organisation’s activities or
performance
Soft skills
Business adviser concept An expert who gives Business adviser concept
3
, information to someone so
that they are able to make a
good business decision
Mobility Mobility
Values and behaviours Values = the principles and Values and behaviours
practices that a business or
organisation thinks are
important and which it tries to
follow
Behaviours: the ways that
someone or something acts in
different situations
Team-management skills Team-management skills
Coaching Coaching
Employee appraisal Jaarlijks gesprek met baas
= functioneringsgesprek
Relationship skills Relatievaardigheden
creditor A person or business to whom schuldeiser
another person or business
owes money
debtors schuldenaren
To borrow Geld lenen van iemand
To lawn Geld lenen aan iemand
Relationship skills = soft skills
Initial Occurring at the beginning
eerste
implications Consequences
implicaties
inexhaustible Enormous
onuitputtelijk
UNIT 2 : ESTABLISHING THE PROFESSION WORLDWIDE
accountancy profession an area of work that needs accountantsberoep
advanced education and
specific training
accountancy bodies official organisations which accountancy-instellingen
= accountancy institutes represent people of a = boekhoudkundige instituten
particular profession
international financial the set of new accounting rules internationale standaarden
reporting standards that over 100 countries have voor financiële verslaglegging
adopted or are in the process
of adopting
regulator a person or organisation toezichthouder
chosen by the government to
ensure that an industry or
system operates legally or fairly
government official someone who has a overheidsfunctionaris
responsible position in a
government organisation
chamber of auditors official body of auditors, who accountantskamer
check that a company’s
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CHAPTER 1 ACCOUNTING AND FINANCE IN THE CHANGING WORLD
1.1 WRITING SKILLS – REFRESHER COURSE- WRITING A SUMMARY
Wat is een summary a short, clear description that gives the main
facts or ideas about something
Waar moet je op letten bij het maken van een - Eigen woorden gebruiken
summary - Selecteer de meest essentiële
informatie
- Intro- midden – slot
- Objectief
- Linking words gebruiken
- Refereer naar het origineel artikel
Linking words: agreement (akkoord) - Moreover
- Furthermore
- Additionally
Linking words: consequence (gevolgen) - Therefore
- As a result
- Consequently
- Thus
Linking words: contrast - However = des al niet te min
- Nevertheless
- Nonetheless
- Although
- Albeit = al waren het
- On the other hand
Linking words: examples (vb) - For example
- In other words
Linking words: conclusion (conclusie) - In conclusion
- In brief
- In short
1.2 TYPES OF ACCOUNTING
bookkeepers they record transactions in boekhouders
purchase ledgers and sales
ledgers
Management accountants have to verify that a company’s Management accountants
=CFO (chief financial officer) published financial statements =CFO (financieel directeur)
give a true and fair view of its
profit, its assets and its liabilities
Senior accountants at financial use accounting data to make Senior accountants op het
controller and director level decisions about how the niveau van financieel
business should proceed controleur en directeur
Internal auditing is about making sure that the Interne accountants
management has sufficient
control over what is going on
in the company
1
, External auditors have to verify that a company’s Externe accountants
published financial statements
give a true and fair view of its
profit, its assets and its liabilities
Assets Activa
liabilities passiva
ledger grootboek
leverage Vreemd vermogen
1.3 INTERNATIONAL ACCOUNTING
Plc = public limited company
= nv
ltd = limited liability
= bv
gdp = gross domestic product
= bbp
GAAP Generally Accepted Accounting
Principles
- going concern principle
- the prudence principle
- the matching principle
- the consistency principle
USA
Going concern principle When preparing accounts, one must assume
that the enterprise will still be viable in the
years to come. Practically all accounting items
are affected by this assumption, such as the
carrying value of fixed assets and inventories,
and the ability to repay debts and other
obligations.
The prudence principle What value should be given to the numbers in
the accounts? It is normal to act pessimistically,
so that profits and assets are not overstated,
and expenses and liabilities realistically valued.
The matching principle This principle is concerned with the timing of
the recognition of transactions in the accounts.
Items are recorded when the income or
expense arises, and are not dependent on the
movement of cash.
The consistency principle Accounts should be produced using the same
principles from one year to the next. Deviations
(=afwijkingen) from this principle must be
noted, and the effects on the accounts shown.
2
, IFRS International Financial reporting Standards
International Financial Reporting Standards
(IFRS) are a set of accounting rules for the
financial statements of public companies that
are intended to make them consistent,
transparent, and easily comparable around the
world.
European Union
IASC International Accounting
Standards Committee
The IASC Board announced a substantial body
of Standards, Interpretations, a Conceptual
Framework, and other< guidance that was
adopted directly by many companies and that
was adopted directly by many companies and
that was looked to by many national accounting
standardsetters in developing national
accounting standards.
1.4 READING – ACCOUNTING AND FINANCE
UNIT 1: DEVELOPING GLOBAL PROFESSIONALS
Forensic accounting When a company’s financial Forensische boekhouding
records are officially checked in
order to find out if there has
been any illegal activity
Insolvency An situation in which a person Insolventie
or a company does not to have
enough money or assets to pay
their debts
Tax accounting Preparing a person’s or Fiscale boekhouding
company’s financial
information in order to
calculate the proportion of
their profit which they must
pay to their government
auditing 1 An official examination of a audit
person’s or organisation’s
accounts by an expert, to
check that they are true and
honest
2 an examination of an
organisation’s activities or
performance
Soft skills
Business adviser concept An expert who gives Business adviser concept
3
, information to someone so
that they are able to make a
good business decision
Mobility Mobility
Values and behaviours Values = the principles and Values and behaviours
practices that a business or
organisation thinks are
important and which it tries to
follow
Behaviours: the ways that
someone or something acts in
different situations
Team-management skills Team-management skills
Coaching Coaching
Employee appraisal Jaarlijks gesprek met baas
= functioneringsgesprek
Relationship skills Relatievaardigheden
creditor A person or business to whom schuldeiser
another person or business
owes money
debtors schuldenaren
To borrow Geld lenen van iemand
To lawn Geld lenen aan iemand
Relationship skills = soft skills
Initial Occurring at the beginning
eerste
implications Consequences
implicaties
inexhaustible Enormous
onuitputtelijk
UNIT 2 : ESTABLISHING THE PROFESSION WORLDWIDE
accountancy profession an area of work that needs accountantsberoep
advanced education and
specific training
accountancy bodies official organisations which accountancy-instellingen
= accountancy institutes represent people of a = boekhoudkundige instituten
particular profession
international financial the set of new accounting rules internationale standaarden
reporting standards that over 100 countries have voor financiële verslaglegging
adopted or are in the process
of adopting
regulator a person or organisation toezichthouder
chosen by the government to
ensure that an industry or
system operates legally or fairly
government official someone who has a overheidsfunctionaris
responsible position in a
government organisation
chamber of auditors official body of auditors, who accountantskamer
check that a company’s
4
