商务英语阅读(第三版)Chapter 5 accountin

become “rules-based,〞 filled with specific details in an attempt
to address as many potential contingencies as possible. This
made standards longer and more complex, and led to arbitrary
Warm-up questions
What do you know about GAAP and IFRS? What are the main differences between them?
What are the strengths and weaknesses of GAAP and IFRS respectively and what are the pros and cons of adopting the global standards?
Words and expressions
thicket (para.1) n. 1 a dense growth of bushes 小树丛，灌木丛
2 something resembling a thicket in density or impenetrability 一大群，一堆错综复杂的事物
While the suit wasn’t filed until June 2002, it is apparent that some in the public were aware of illegal practices at WorldCom over a year earlier. A previous lawsuit was filed in June 2001 by several WorldCom shareholders, only to be thrown out. That suit included testimony from a dozen former WorldCom employees, detailing the same problems that would eventually bring about the company’s downfall.
Background Introduction
The present text highlights the recent development in the US accounting landscape and exams the benefits and potential problems as well as the outlook for convergence.
一大堆问题 a thicket of problems
一群记者围在他家门口 A thicn front of his
house
tally (para.1) n. a record of the number or amount of sth especially one that you can keep adding to纪录，累计统计
reconcile (para.5) v. to make (two apparently conflicting things)
compatible or consistent with each other 调和，使兼 容/对接 to reestablish a close relationship 和解
criteria for accounting treatments that allow companies to
structure transactions to circumvent unfavorable reporting. In
addition, the quest for bright-line accounting rules shifted the
keep a daily tally of road accidents
scythe (para.1) n. a tool with a long handle and a slightly curved blade, used for cutting long grass and corn长柄大镰刀
Chapter 5
Accounting and
Financial Management
Background Introduction
Standard-setters create accounting standards that mandate how financial reporting should be conducted so that the information available to relevent stakeholders can be reliable and consistently comparable. These standards can be divided into two basic categories: rules-based and principle-based. Under the former, detailed rules must be followed when preparing financial statements. Many accountants favor rules-based standards, because in the absence of rules they could be brought to court if their judgments of the financial statements were incorrect. When there are strict rules to follow, the possibility of lawsuits is diminished.
Financial executives at WorldCom exercised various methods of hiding expenses for a period of more than two years between 2000 and 2002. They delayed reporting some expenses and misrepresented others to give investors the appearance of growth during secretly hard times.
调和这些对立的观点是有可能的 It is possible to reconcile these apparently opposing
perspectives.
Getting Hamas and Fatah to reconcile is also key to the success of U. S.-backed Mideast peace talks
Background Introduction WorldCom scandal
In June 2002, Securities and Exchange Commission (SEC) lawyers filed civil fraud charges against WorldCom for what would later be estimated at over $9 billion worth of accounting errors.
Background Introduction
However, the US GAAP went under a great deal of criticism in
the wake of Enron and Worldcom scandals. A major concern
arising from these business scandals was that GAAP had
goal of professional judgment from consideration of the best
accounting treatment to concern for parsing the letter of the
r
u
l
e
s
.
Some experts argued that rules-based accounting standards encourages a check-the-box mentality to financial reporting that eliminates judgments from the application of the reporting. To address these concerns, the Sarbanes-Oxley Act of 2002 required the SEC to examine the feasibility of a principles-based accounting system, which represents a call for the convergence of US accounting practices and corporate governance with their international counterparts.
The Enron scandal has had far-reaching political and financial implications. As a consequence of the scandal, new regulations and legislation were enacted to expand the reliability of financial reporting for public companies.
n. an official order given to sb to perform a particular task指令，命令
vt to make mandatory; order; require 命令，要求 公立学校的强制解除种族隔离
mandated desegregation of public schools
Background Introduction Enron scandal
Enron Corporation was once one of the world's largest electricity and natural gas traders. Enron filed for bankruptcy protection in late 2001 amid allegations of accounting fraud and violations of federal securities laws.
convergence (para.2)
n. the process by which different ideas, policies etc. become more similar趋同
不同做法的趋同
the convergence of different pratices
mandate (para.3)
scrap (para.3) v. to cancel or get rid of sth
no longer practical or useful, discard报废，废 弃
scrap your old computer
I think we should scrap nuclear and chemical weapons.