Business Spotlight 08.2019

(Nancy Kaufman) #1

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.


  1. 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


  1. 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.
Free download pdf