EPISODE 117
LEVEL A2
READING COMPREHENSION
Company results
A firm reports its performance in a particular period in its results. Results for a particular year are shown in the company’s annual report. This contains, among other things, a profit and loss account (in American English called income statement).
In theory, if a company makes more money than it spends, it makes a profit. If not, it makes a loss. But it’s possible for a company to show a profit for a particular period because of the way it presents its activities under the accounting standards or accounting rules of one country, and a loss under the rules of another.
A pre-tax profit or a pre-tax loss is one before tax is calculated. An exceptional profit or loss is for something that is not normally repeated, for example the sale of a subsidiary company or the cost of restructuring. A company’s gross profit is before charges like these are taken away; its net profit is afterwards. The final figure for profit or loss is what people call informally the bottom line.
If a company is making a loss, commentators may say that it is in the red. When a company’s results are presented in a way that makes them look better than they really are, even if it follows the rules, it may be accused of creative accounting.
Exercise 1
Match the two columns into correct collocations:
1. accounting accounting
2. annual company
3. creative line
4. income loss
5. pre-tax loss account
6. profit and performance
7. subsidiary profit
8. the bottom report
9. to be in standards
10. to follow statement
11. to make a the rules
12. to report the red
Exercise 2
Find in the text words that mean:
1. wyniki (firmy)
2. sprawozdanie roczne
3. rachunek zysków i strat
4. wykazywać zysk
5. rachunkowość
6. przed opodatkowaniem
7. spółka zależna
8. restrukturyzacja
9. opłaty
10. ostateczny wynik finansowy
Exercise 3
What does it mean…?
If a company is making a loss, commentators may say that it is in the red.
This idiom can also be used about everyone’s personal financial situation: simply speaking, when we don’t have any money left on our accounts we are in the red. Fortunately, there is an opposite idiom as well: to be in the black.
Are you in the red or in the black at the moment?
Grammar corner…
A pre-tax profit or a pre-tax loss is one before tax is calculated.
When a company’s results are presented in a way …
These sentences contain a very common grammar structure: passive voice.
We use passive voice when we don’t have to say WHO does something because the important thing is just WHAT happens.
It can be generally presented as: to be + past participle (3rd form of the verb).
Exercise 4
Complete the sentences correctly with the passive voice structure:
1. Our offices (clean) ____________________________ by an outsourced company.
2. You (advise) ____________________________ not to waste time on phone calls.
3. Employees (not/allow) ____________________________ to send private emails.
4. I (pay) ____________________________ very well in my job.
5. My work (monitor) ____________________________ on a regular basis.
6. In our company reports (complete) ____________________________ every week.
7. Bad workers (fire) ____________________________ very quickly.
8. My colleague (promote) ____________________________ every 2 years.
9. It (not/permit) ____________________________ to smoke inside the building.
10. The first permanent contract (sign) ____________________________ after a year of work.
GLOSSARY
company results – wyniki firmy
to report- raportować, robić sprawozdanie
performance – wyniki
particular – poszczególny, konkretny
annual report – roczne sprawozdanie
to contain – zawierać
profit and loss account / income statement – rachunek zysków i strat
to make a profit / a loss – osiągać zysk / ponieść stratę
to show a profit – wykaz(yw)ać zysk
accounting standards / rules – zasady rachunkowości
pre-tax profit / loss – zysk / strata przed opodatkowaniem
tax – podatek
to calculate – wyliczać
exceptional – wyjątkowy
sale – sprzedaż
subsidiary company – spółka zależna
restructuring – restrukturyzacja
gross / net profit – zysk brutto / netto
charges – opłaty
to take away – odejmować
final figure – ostateczna liczba
the bottom line – ostateczny wynik finansowy
to be in the red – być na minusie (debecie)
to follow the rules – postępować zgodnie z zasadami
to be accused of – być oskarżanym o
creative accounting – kreatywna rachunkowość
>>Answers ANSWER KEY: Ex. 1 Ex. 2 Ex. 4 hide
1. accounting standards
2. annual report
3. creative accounting
4. income statement
5. pre-tax loss
6. profit and loss account
7. subsidiary company
8. the bottom line
9. to be in the red
10. to follow the rules
11. to make a profit
12. to report performance
1. company results / performance
2. annual report
3. profit and loss account
4. to show a profit
5. accountancy
6. pre-tax
7. subsidiary company
8. restructuring
9. charges
10. the bottom line
1. Our offices are cleaned by an outsourced company.
2. You are advised not to waste time on phone calls.
3. Employees are not allowed to send private emails.
4. I am paid very well in my job.
5. My work is monitored on a regular basis.
6. In our company reports are completed every week.
7. Bad workers are fired very quickly.
8. My colleague is promoted every 2 years.
9. It is not permitted to smoke inside the building.
10. The first permanent contract is signed after a year of work.
