ITEM OF INTEREST

released by: Jefferson Sanchez

Disciplinary Tribunal of the Central Board of Accountants change of president: Now is a Certified Public AccountantBy: actualicese.com
     7 CommentsPublished: September 29, 2010
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 The practitioner Dr. Mauricio Spanish Leon was appointed since last September 23, 2010 as a representative of the Ministry of Commerce, Industry and Tourism in the Disciplinary Tribunal, replacing Dr. Giovanny Javier Chamorro economist who decided to resign his appointment. In the same resolution, the Minister is appointed as Chairman of the Disciplinary Tribunal of the Central Board of Accountants as established by Decree 1955 of 2010.A very important news came last week when the Ministry of Commerce Industry and Tourism issued the new resolution 2820 of September 23, 2010 through which it named as its chief representative before the disciplinary tribunal of the Central Board of Accountants the practitioner Spanish Mauricio Leon. In the same resolution, the Minister is appointed as Chairman of the Disciplinary Tribunal of the Central Board of Accountants as established by Decree 1955 of 2010.As you may recall, Dr. Giovanny Javier Chamorro Ruales had been appointed as the representative of the Ministry before the court according to the above mentioned Resolution 2374 of August 18, 2010. When held the first meeting of the new tribunal with the participation of members representing universities accountants and democratically elected and virtually in July 2010, Dr. Chamorro was proclaimed president of the court.Although doing so did not violate the standards of paragraphs 3 and 4 of Decree 1955 of May 2010, it caused a widespread rejection among members of the accounting in Colombia.The Economist chose notGiven the turmoil that led to the proclamation as President of a disciplinary tribunal for Accountants, Dr. Giovanni preferred time resign his appointment as representative of the Ministry of Commerce before the Disciplinary Tribunal. Thus we confirmed yesterday Dr. José Hernando Zuluaga, representative of public accountants referred to the court:"Dr. Giovanni Ruales Chamorro resigned as a member of the Central Board of Accountants. I could not resign as President of the Court because there was never a formal appointment. What did the minister was then appoint the practitioner Spanish Mauricio Leon as Member of the Court and in turn President with the above resolution. "Then we are glad this new appointment is made within the Security Court which will lead to greater harmony to the inner workings of the self and its relations with the accounting community. And obviously we also thank Dr. Giovanni to have had the honor of having made this possible.The new court will operate until December 2013In view of the foregoing, and pursuant to decisions taken at the reconvening of the Court held last September 23, 2010, the Internet portal of the Central Board of Accountants and let see what the new composition of the Court which runs until December 2013They are the following public servants (see article 7 of Decree 1955 of 2010):CP. MAURICIO LEON SPANISHPRESIDENTRepresentative of the Administrative Sector of Commerce, Industry and TourismCP. BOLIVAR MARGARITA ROSA ROLDÁNVICE PRESIDENTACCOUNTANT GENERAL OF THE NATIONCP. ESQUIVEL MANUEL GONZALEZRepresentative of the Administrative Sector of Commerce, Industry and TourismCP. OSCAR ALZATE IBAÑEZDelegado the Director General of Taxes and Customs "DIAN"CP. LONDOÑO WILLIAM JOSE MURILLOSenior Fellow at the National Business Council RepresentationCP. LEON ENRIQUE MIGUEL PEÑAAlternate member of the National Business Council RepresentationCP. HERNANDO JOSE MARIN ZULUAGAPrincipal Representative of Certified Public AccountantsCP. ALFONSO ESCOBAR ISMAEL BARRERARepresentante Deputy Public AccountantsCP. AURA LÓPEZ SALAZARRepresentante Herminda Senior Higher Education InstitutionsCP. MARIA VICTORIA AGUDELO VARGASRepresentante Deputy Higher Education InstitutionsGeneral CHAVEZSecretaria YENNY RUBIELOS

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BOOKKEEPING 4 BN

presented by: Victor Fabian Lozano, Jefferson Sanchez y Yenny  Daza 

REPLY BOOKKEEPING

4.1 match the words in the box with the definitions below. look or a and b opposite to you

1)   an amount entered on the left hand side of an account, recording money paid out

Reply: credit

2)   a book of account

Reply: ledger

3)   customers who owe money for goods or services not yet paid for

Reply: Debtors

4)   an amount entered on the right hand side of an account, recording a payment received

Reply: debit

5)   goods stored ready for sale

Reply: Stock

6)   suppliers who are owed money for purchases not yet paid for

Reply: creditors

"interesting data:

credit: appropriation of nature is used immediately to make purchases of goods and other merchandise is sold or when, or made payments   

Creditors: corresponds to sales or services to third parties becoming creditors, with customer

Ledger: The ledger is where it organizes and classifies the different movements in their accounts must be authorized

Stock: title is a property value that represents ownership of a person in a society, which provide economic.

debits: nature is revenue debit cash, wallet, and other expenses

debtors: debts up to the third toward the company or called accounts receivable, which corresponds to the sale of goods"

4.2. Complete the sentences. I.ook at A, B and C opposite to help you.

·         Double-entry bookkeeping shows where money comes from and where it goes. It is always transferred from one account to another one. Every event is entered twice – once as a credit and once as a debit

·        Most businesses record very  frequent or numerous transactions in purchases or  sales

·        The main account books are called the day books or journal.

in Britain, they call the main books of nominal ledgers. creditors, suppliers to the company owes money on credit purchases are recorded in a book bought

·        In order to prepare financial statements, companies do a trial balance .which copies all the debit and credit balances of different accounts onto a single page

4.3 Complete the sentences using “debit” or “credit”,  look at A opposite to help you .

1.    If  you buy new assets, you DEBIT the  cash or capital account

2.    If you pay some bills, you CREDIT the liabilities  account

3.    If you buy materials from a supplier on 60 days credit, you DEBIT the purchases account and CREDIT  the supplier´s  account

If you sell something to a customer who will pay 30 days later, you CREDIT the sales account and DEBIT the customer´s account

Depreciation and amortization

A Fined assets

A company's assets are usually divided into current  assets like cash and stock or inventory which will be used or concerted into cash in less than a year, and fixed assets such as buildings and equipment, which will continue to be used by the business for many years.

But fixed assets wear out- become unusable, or become obsolete -out of date, and eventually have little or no value. consequently fixed asset are  depreciated: their value on a balance sheet is reduced each year by a charge against profits on the profit and loss account. in other words, part of the cost of the asset is deducted from the profits each year.

The accounting technique of depreciation makes it unnecessary to charge the whole cost of a fixed asset against profits  in the year it is purchased. instead it can be charged during all the years it is used. this is an example of the matching principle

B Valuation

Assets such as buildings , machinery and vehicles are grouped together under fixed assets.

Land is usually not depreciated because it rends to appreciate, or gain in value. British  companies occasionally revalue -calculate a new value for- appreciating fixed asset like land and buildings in their balance sheets. the revaluation is at either current replacement cost- how much it would cost to buy new ones, or at net realizable value (NRV)-how much they could be old for. this is not allowed in the USA . apart from this exception appreciation is only recorded in countries that use inflation accounting systems

Companies in countries which use historical cost accounting - recording only the original purchase prince of assets - do not usually record an estimated market value -the price at which something could be sold today. the conservatism and objectivity principles support this, and where the company is going concern,  the market value of fixed assets is not important.

C. the most common system of depreciation for fixed assets is the straight-line method, which means charging equal annual amounts againts, profit during the lifetime of the asset (e.g deducting 10% of the cost of an assets value from profits every year for 10 years) many continental european countries allow accelerated depreciation: bussinesses can deduct the whole cost of an asset in a short time. accelerated depreciation allowances are an incentive to investement: a way to encourage it. For example, if a company deducts the entire cost of an asset in a single year, it reduces its profits, and therefore the amount of tax, is has to pay. consequently new assets, incluiding huge buildings, can be valued at zero on balance sheets. in britian, this would not be considered a true and fair view of the company's assets

9.1 March the words in the box with the definitions below. look at A and B apposite to help you                     

appreciate                    current assets                       fixed assets                

obsolete                       revalue                                   wear out

 1. to record something at a different price (revalue )

 2. assets that will no longer be in the company in 12 months' time  (current assets)

 3. to increase rather than decrease in value (appreciate).

 4. our of date, needing to be replaced something newer (wear out)

 5. assets that will remain in the company for several years (fixed assets )

 6. to become used and damaged (obsolete)

9.2 Match the nouns in the box with the verbs below to make Word combinations. Then use some of the word cominations to complete the sentences below. Look at A,B and C. opposite to help you.

Costs              fixed assets  market value

Profits                        value              purchase price

Deduct           profists                                  record    costs ,      value

Depreciate fixed assets                 reduce  market value    ,     purchase price                               

1-    Because we deduct  the profits , we don’t have worry about the market value of fixed assets.

2-    To depreciate fixed assets, we purchase price  part of their  reduce from profits each year.

3-    Because land usually appreciates, companies do not generally  depreciate  its value on the balance sheet.

9.3 March the two parts of the sentes. Look at B and C opposite to help you.

1. All fixed assets can appreciate it there is high inflation  R / A

2. Accelerate depreciation allows companies to  R / C

3. Fixes asserts  generally lose value, except for land, R / E

4. The straight- line method of depreciation R/B

5. Accelerated depreciation reduce companies tax bill, R/D

a. which usually appreciates

b. charges equal amounts against profist every year

c. remove some extremely valuable assets from their balance sheets

d. which encourages them to invest in new factories, etc.

e. but historical cost accounting ignores this.

by magaly  martinez, lucy aguilera and angela gutierrez... 

THE BALANCE SHEET 1

The Balance Sheet 1

Are the following statements true or false? Find reasons for answers in A and B opposite.

British and American balance sheers show the same information, but arranged differently.  (TRUE)

• • American and continental European companies usually put assets on the left and capital and liabilities on the right. In Britain, this was traditionally the other way round, but now most British companies use a vertical format, with assets at the top, and liabilities and capital below.

The revenue of the company in the past year is shown on the balance sheet.  (FALSE) 

      A balance sheet does not show how much money a company has spent or received during a year. This information is given in other financial statements: the profit and loss account and the cash flow statement.

The two sides or halves of a balance sheet always have the same total  (TRUE)

       The balance sheet is a document which has two halves. The totals of both halves are always the same, so they balance. 

The balance sheet gives information on how much money the company has received from sales of shares (TRUE)

   

        Shareholders' equity consists of all the money belonging to shareholders. Part of this is share capital - the money the company raised by selling its shares.

The assets total is always the same as the liabilities total (FALSE)

Since assets are shown as debits (as the cash or capital account was debited to purchase them), and the total must correspond with the total sum of the credits - that is the liabilities and capital - assets equal liabilities plus capital.

The balance sheet tells you love much money the company owes (FALSE)

Liabilities are obligations to pay other organizations or people: money that the company owes, or will owe an a future date. These often include loans taxes that will soon have to be paid, future pension payments to employees, and bills from suppliers: companies which provide raw materials or parts.

Complete the sentences. Look at A and B opposite to help you.

Providers are companies that provide other companies with materials, components, etc.

Retained earnings are profits that the company has not distributed to shareholders.

Assets are things a company owns and uses in its business.

The liabilities consist of everything a company owes.

Shareholders' equity consist of money belonging to a company's owners.

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DIANA MARCELA SERNA RINCON

JUAN CAMILO HINCAPIE GONZALEZ

YINA PAOLA FRANCO CALDERON

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AUDITING

10.1 Match the job titles (1-4) with the descriptions (a-d) look at A and B opposite to help you

1.       Bookkeepers                    D - people who prepare a company’s day-to-day- accounts

2.       Accountant’s                    C-  People who prepare financial statements

3.        Internal auditors            a -Company employees who check the financial statements

4.        External auditors           b – Expert accountants working for independent firms who review

    Company’s financial statements and accounting records.

10.2 match the nouns in the box with the verbs below to make word combinations. Some words can be used twice. Look at A and B opposite to help you.

Accounts                            procedures                        opinions

Systems of control         regulations                        Policies

Stock take                          advice                  laws

                                policies                                                                                              Stock take

                                System of Control                                                                         Procedures                                                      Accounts                              

                                  Laws                                                                 Give                        Advice

                                 Regulations                                                                                    Opinions

                                Procedures

                                System of Control

Complete table with words from A,B and C opposite and related forms. Put a stress mark in front of the stressed syllable in each word. The first one has been done for you. Then complete the sentences below with the correct forms of words from the table.

Verb	Noun	Adjective
Play	soccer	Accurate
Estudy	Compliance	Homework
Recommend	Children	Small
Send	Record	Of test
Write	Examination	Of English

1.       I am an internal auditor. I .Examination.. The company’s accounts, to make sure that they are …accurate…., and that they …recommend… with company policies and general accounting principles.

2.       If the control systems aren’t adequate, I make …record... Concerning changes.

3.       The external auditors check to see if transactions are being…compliance… correctly.

Over to you

Would you like to work as an external auditor?

Rta: not like to be an auditor.

Do you think they get a very friendly welcome at the companies whose accounts the audit?

Rta: I think that not always welcome audits

If not, why not? I think that the audit work is good for the verification of each record that make in the company.