Business Spotlight – Nr.6 2019

8 SKILL UP!

IN CONTEXT

Money in,

money out

Here, we present some more key phrases

and expressions you might use to discuss

company finances in more detail.

5. Misleading?
   Craig: If you take a look at the prof-
   it and loss account, you’ll see we
   made a trading profit of €185,000
   last year.
   Sue: Can we go over these num-
   bers? How have you calculated
   these figures?
   Craig: Using the full-disclosure
   principle.
   Sue: Have you deducted the entire
   purchase cost of your production
   equipment for that year? Could
   you clarify that for me?
   Craig: It’s valued at zero on the
   balance sheet.
   Sue: How long will the equip-
   ment be in use?
   Craig: Maybe seven years.
   Sue: That’s not really a true and fair
   view of the company’s assets.

clarify sth. , etw. klären; hier: erläutern

deduct sth. , etw. abziehen

trading profit , Handelsgewinn

6. Be consistent
   Sue: Normally, fixed assets are de-
   preciated over the entire period
   that they are used. Each year, you
   can charge equal amounts against
   profits on the profit and loss ac-
   count. In your case, over seven
   years. Why did you deduct the
   entire cost last year?
   Craig: I’ll have to check with our
   accountant. I think for tax reasons.
   Sue: We can legitimately defer
   some of your current operating ex-
   penses to later periods, which will
   increase your current profits. This
   is something investors like.

defer sth. , etw. verschieben

depreciate sth. , etw. abschreiben Illustration: Bernhard Förth

The SiTuaTion:

Sue starts working for Ron.

Her first business case is

Afoodable, Craig Bain’s meal

delivery service for people

with special diets.