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 records бухгалтерские счета, бухгалтерская отчетность

stocktaking records книга учета запасов

accounting date отчетная дата

accrual basis принцип начислений

departure n (зд.) отклонение

Companies Act Закон о компаниях

overriding adj первостепенный