Financial Statements

Financial statements (or financial reports) are formal records of a business' financial activities. These statements provide an overview of a business' profitability and financial condition in both short and long term. There are four basic financial statements:
1. Balance sheet: also referred to as statement of financial condition, reports on a company's assets, liabilities and net equity as of a given point in time.
2. Income statement: also referred to as Profit or loss statement, reports on a company's results of operations over a period of time.
3. Cash flow statement: reports on a company's cash flow activities, particularly its operating, investing and financing activities.
4. Statement of retained earnings: explains the changes in a company's retained earnings over the reporting period.

For large corporations, these statements are often complex and may include an extensive set of notes to the financial statements and management discussion and analysis. The notes typically describe each item on the balance sheet, income statement and cash flow statement in further detail. Notes to financial statements are considered an integral part of the financial statements.

Purpose of financial statements
"The objective of financial statements is to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions." Financial statements should be understandable, relevant, reliable and comparable. Reported assets, liabilities and equity are directly related to an organisation's financial position. Reported income and expenses are directly related to an organisation's financial performance.
Financial statements are intended to be understandable by readers who have "a reasonable knowledge of business and economic activities and accounting and who are willing to study the information diligently."

Analogy
Knowing is not the same as understanding, so it is helpful to present an analogy.

• Think of an investment as a water reservoir. The value of the investment is the volume of water in it. The shareholder equity (net equity) on the balance sheet measures this value.
• Streams empty into the reservoir, adding more water. These inflows are measured by revenues on the income statement.
• Streams run out of the reservoir, depleting it. These outflows are measured by expenses on the income statement.
• The difference between these inflows and outflows is the net income, also shown in the income statement.
• When a neighbor joins in the investment as a partner, he digs a canal from his own reservoir so it drains into the reservoir. This additional water is measured by an increase in the share capital.
• If you ask a neighbor to add to the reservoir, it is considered as liability, thus reducing net equity but increasing assets. These are both shown on the balance sheet.

While measuring the volume of water in the reservoir at a point in time (balance sheet) is relatively easy, keeping track of the streams' volumes at every second of the year is difficult. Accountants may choose to ignore some streams: they may not know that some streams exist: water may be evaporating, and unmeasurable. As a result the income statement is easily wrong. Regardless, the net sum of inflows less outflows should equal the difference in the reservoir (beginning vs. ending). The statement of changes in shareholder equity attempts this reconciliation.
None of the financial statements measures your own personal share of the reservoir when you have partners. It is up to the individual investor to measure, not the business totals, but his share. The methods to use "equity per share" is shown at shareholders' equity.

Users of financial statements
Financial statements are used by a diverse group of parties, both inside and outside a business. Generally, these users are:

1. Internal Users: are owners, managers, employees and other parties who are directly connected with a company.

• Owners and managers require financial statements to make important business decisions that affect its continued operations. Financial analysis are then performed on these statements to provide management with a more detailed understanding of the figures. These statements are also used as part of management's report to its stockholders, as it form part of its Annual Report.
• Employees also need these reports in making collective bargaining agreements (CBA) with the management, in the case of labor unions or for individuals in discussing their compensation, promotion and rankings.
  

2. External Users: are potential investors, banks, government agencies and other parties who are outside the business but need financial information about the business for a diverse number of reasons.

• Prospective investors make use of financial statements to assess the viability of investing in a business. Financial analyses are often used by investors and is prepared by professionals (financial analysts), thus providing them with the basis in making investment decisions.
• Financial institutions (banks and other lending companies) use them to decide whether to grant a company with fresh working capital or extend debt securities (such as a long-term bank loan or debentures) to finance expansion and other significant expenditures.
• Government entities (tax authorities) need financial statements to ascertain the propriety and accuracy of taxes and other duties declared and paid by a company.
• Media and the general public are also interested in financial statements for a variety of reasons.
  

Government financial statements
The rules for the recording, measurement and presentation of government financial statements may be different from those required for business and even for non-profit organizations. They may use either of two accounting methods: accrual accounting, or cash accounting, or a combination of the two. A complete set of chart of accounts is also used that is substantially different from the chart of a profit-oriented business.

Audit and legal implications
Although the legal statutes may differ from country to country, an audit of financial statements are usually, but not exclusively required for investment, financing, and tax purposes. These are usually performed by independent accountants or auditing firms. Results of the audit are summarized in an audit report that either provide an unqualified opinion on the financial statements or qualifications as to its fairness and accuracy. The audit opinion on the financial statements is usually included in the annual report.

There has been much legal debate over who an auditor is liable to. Since audit reports tend to be addressed to the current shareholders, it is commonly thought that they owe a legal duty of care to them. But this may not be the case as determined by common law precedent. In Canada, auditors are liable only to investors using a prospectus to buy shares in the primary market. In the United Kingdom, they have been held liable to potential investors when the auditor was aware of the potential investor and how they would use the information in the financial statements. Nowadays auditors tend to include in their report liability restricting language, discouraging anyone other than the addressees of their report from relying on it. Liability is an important issue: in the UK, for example, auditors have unlimited liability.

In the United States, especially in the post-Enron era there has been substantial concern about the accuracy of financial statements. Corporate officers (the chief executive officer (CEO) and chief financial officer (CFO)) are personally liable for attesting that financial statements "do not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by th[e] report". Making or certifying misleading financial statements exposes the people involved to substantial civil and criminal liability. For example Bernie Ebbers (former CEO of WorldCom) was sentenced to 25 years in federal prison for allowing WorldCom's revenues to be overstated by $11 billion over five years.

Standards and regulations
Different countries have developed their own accounting principles over time, making international comparisons of companies difficult. To ensure uniformity and comparability between financial statements prepared by different companies, a set of guidelines and rules are used. Commonly referred to as Generally Accepted Accounting Principles (GAAP), these set of guidelines provide the basis in the preparation of financial statements.

Recently there has been a push towards standardizing accounting rules made by the International Accounting Standards Board ("IASB"). IASB develops International Financial Reporting Standards that have been adopted by Australia, Canada and the European Union (for publicly quoted companies only), are under consideration in South Africa and other countries. The United States Federal Accounting Standards Board has made a commitment to converge the U.S. GAAP and IFRS over time.

Inclusion in annual reports
To entice new investors, most public companies assemble their financial statements on fine paper with pleasing graphics and photos in an annual report to shareholders, attempting to capture the excitement and culture of the organization in a "marketing brochure" of sorts. Usually the company's chief executive will write a letter to shareholders, describing management's performance and the company's financial highlights.

In the United States, prior to the advent of the internet, the annual report is considered the most effective way for corporations to communicate with individual shareholders. Blue chip companies went to great expense to produce and mail out attractive annual reports to every shareholder. The annual report was often prepared in the style of a coffee table book.

History
Financial statements and records have been produced for as far back as there has been human writing. The people in the old Mesopotamian societies operated both insurance and credit interest corporations, and had the obvious need of record keeping.

Circus Camp

For kids looking to clown around this summer, we suggest that they run away and join a circus...ours! Where kids from ten to eighteen will learn slapstick falls, acrobatics, pratfalls, tumbling, hand-balancing, improvisation, gags and mime. More clownish lessons include: juggling rings and balls, riding unicycles, mastering the Diablo (Chinese yo-yo) and making balloon animals! Over a hundred and fifteen locations, choose that bests suits you.

Before climbing into the center ring, campers will be taught how to apply clown make-up, prepare costumes and sets, use a hoola-hoop, throw pies, walk on stilts, spin plates, walk a tight rope, fly through the air on a lyra and cradle, and even tame a wild animal (such as a counselor). Because safety is a priority, stunts will be taught using safety belts, mats, kneepads and spotters. After mastering these wacky skills, kid clowns will put on a circus show for the entire camp.

So, if you want your kids to have great fun this summer, and want them to experience de joy and excitement of the circus, bring them to our circus camp. You’ll have the time of your life! For more information, visit our website at http://www.paliadventures.com/circus.html

Giving Advice

Dear Donato,

I just got your letter, and I’m sorry to hear that you’re having so much trouble making friends at your workplace. I hope the following advice may be of some help to you.

First, why don’t you offer yourself as a volunteer to help organize work gatherings? Doing it will help you socialize with you co-workers and you’ll get to know everyone in you office, from your boss, to the anyone there is to know.

Also, maybe you can make some meetings in your department, so If joining the events committee fails, you’ll still get to know your own department. But don’t always make them in the office. Try some get-togethers outside the office, like in a restaurant.

I hope that my advice will help you get to know better your coworkers and feel better about your new workplace. I’ll be waiting to hear how everything turned out.

Best of luck,
Maribel

Letter To An Editor

I’m writing about a serious problem that we have in our city: stray pets. It is a problem that should be dealt with because it’s horrible that we have such beautiful and kind animals roaming the streets, putting their lives, and ours, in danger. I firmly believe that we should take some steps to deal with this issue.

First of all, as humans, and society, we have the duty to take care of our pets, which means that we should spay or neuter our pets, in order that they do not over populate houses, and, consequently, end up in the streets.

Secondly, we should tag and microchip our pets, in case of an accident or a catastrophe, let us remember hurricane Katrina, because, by their nature, pets have a necessity to explore and wonder off. Tagging them or microchipping them makes it easier to help them get back home.

In conclusion, I believe that, as a society, we and make this changes and put an end to the suffering that pets on the street cause. We prevent accidents and illness that our loving companions cause unknowingly.

Attentively,
Maribel Tenorio

How To Improve The Global Enviroment

The planet suffers more each day because of the pollution that we create, we are destroying animals, plants and the very air that we need for our survival.

First, we need to find other forms of energy; we cannot continue burning fossil oils and create toxic fumes that create acid rain. Using solar energy would improve the condition of the planet vastly; it would also reduce fumes that contaminate our air and waters.

We have to stop cutting trees; trees give us oxygen and clean the atmosphere. They are also food and shelter for a wide variety of species on the planet and we would help to preserve natural habitats.

In addition, everyone should keep recycling, and those who have not started, they have to start know. Recycling would keep trash away from rivers that provide us with fresh, drinking water and it would reduce litter form the streets and local dumping ground would reduce and contaminate less.

If everyone does its part, we should have a clean earth in no time, but we have to do it, we have to put in practice these ideas and come up with new ones. We only have one earth, one home… how would you protect it?

St. Peter’s Basilica

The Basilica di San Pietro in Vaticano and commonly called St. Peter’s Basilica, it’s located in Vatican City in Rome, Italy. It is the most prominent building inside the Vatican City.

The history of the original St. Peter's goes back to AD 349, when the emperor Constantine completed a basilica over the site of the tomb of St. Peter, the Church's first pope. The original church stood for more than 1,000 years, undergoing a number of restorations and alterations, until it was in danger of collapse toward the middle of the 15th century. In 1452 a reconstruction job began but was quickly abandoned for lack of money. In 1503 Pope Julius II instructed the architect Bramante to raze all the existing buildings and to build a new basilica, one that would surpass even Constantine's for grandeur. It wasn't until 1626 that the basilica was completed and consecrated.

The largest church in the world, built over the tomb of St. Peter, is also the most imposing and breathtaking architectural achievement of the Renaissance (although much of the lavish interior dates to the Baroque). The physical statistics are impressive: it covers 18,000 square yards, runs 212 yards in length, and carries a dome that rises 435 feet and measures 138 feet across its base. Directly to the east of the church is St Peter's Square (Piazza di San Pietro), built by Gianlorenzo Bernini between 1656 and 1667. An elliptical colonnade with two pairs of Doric columns, which form its breadth, each bearing Ionic entablatures, surrounds it. The colonnade wraps around the square, embracing the faithful in "the motherly arms of the church". This is an excellent example of Baroque architecture, where creativity is coupled with flexible guidelines. In the center of the colonnade is a 25.5 metre (83.6 ft) tall obelisk. Domenico Fontana finished moving the obelisk to its present location on September 28, 1586 by order of Pope Sixtus V. The obelisk dates back to the 13th century BC in Egypt, and was moved to Rome in AD 37 to stand in the Circus of Nero some 250 metres (820 ft) away. Including the cross on top and its base, the obelisk reaches 40 m. (131 ft). The Vatican obelisk is notable for being the second largest standing obelisk and the only one that remained standing since it was erected during the Roman Empire. An original bronze globe on top of the structure was removed when the obelisk was re-erected in St Peter's Square by Domenico Fontana. There are also two fountains in the square, the north one by Maderno (1613) and the southern one by Bernini (1675). The square is reached mainly through the Via della Conciliazione built by Mussolini after the conclusion of the Lateran Treaties.

Walking along the right aisle of the basilica, there are several noteworthy monuments and memorials. The first is Michelangelo's Pietà, located immediately to the right of the entrance. After an incident in 1972 when an individual damaged it with an axe, the sculpture was placed behind protective glass. Up the aisle is the monument of Queen Christina of Sweden, who abdicated in 1654 in order to convert to Catholicism. Further up are the monuments of popes Pius XI and Pius XII, as well as the altar of St Sebastian. Even further up is the Chapel of the Blessed Sacrament, which is open during religious services only. Inside it is a tabernacle on the altar resembling Bramante's Tempietto at San Pietro in Montorio. Bernini sculpted this gilded bronze tabernacle in 1674. The two kneeling angels were added later. Further still are the monuments of popes Gregory XIII (completed in 1723 by Rusconi) and Gregory XIV.

St. Peter’s Basilica is a fascinating and wonderful place to visit full of history and art. There’s so much thing to see, that I think you’ll need a couple of weeks to experience it all… Moreover, it is a place you will never forget a place.

Review of the Summer Wine Festival

The Summer Wine Festival takes place every august in Ensenada, Baja California. The wine growing region of Baja California lies within the valleys of San Vicente, Santo Tomás and Guadalupe, all located in the municipality of Ensenada. Much of the Baja California peninsula has a semi-desert climate, but Ensenada's region has a cold marine current which helps to produce a Mediterranean climate which is ideal for growing wine grapes. With its warm summers and mild winters, not to mention sunny days and cool nights during the growing season, these valleys produce fine Mexican wines with a style of their own.
The rolling hills and lowlands of the Guadalupe Valley, just northeast of Ensenada, and the Santo Tomás Valley to the southeast are covered in vineyards. The wineries in this area produce nearly 95% of Mexico’s wines. These days they produce an array of memorable wines, including Cabernet Sauvignons, Merlots, Cabernet Francs, Zinfandels, Petit Sirahs, Sauvignon Blancs, Semillons, Chenin Blancs, Fumé Blancs, Blanc de Blancs and Chardonnays.

Mexican wines from this area have obtained international recognition, and are being exported to Europe, the United States and Canada in ever increasing quantities.

For these and many other reasons, every year the wineries hold a festival where you get the chance to try some of the best wines of the region, as you can try some of the best food to accompany them. From lobster to paella, prepared each one in so many different ways, and each one more delicious that the next that you can’t stop your mouth from watering.

With the friendliest atmosphere, this is an experience that you shouldn’t let it pass you by!

Cancun

Cancun is the most beautiful, relaxing and exciting place you will ever know, why not take you spring brake vacation here? It’s the perfect choice!

Cancun offers many things to do, see and taste! That’s why it’s the most popular destination in Mexico. Since the Mayans conquered this region, a little more than a half a century ago, it has always been a paradise on earth.

Dive Through Crystal Waters
You can dive into the crystal clear, turquoise waters of the Mexican Caribbean and experience beautiful reefs filled with a myriad of colorful marine life. Scuba Cancun is a medium size, family run Padi Five Star dive center and marina. It is owned and run by Captain Luis Hurtado who has more than 55 years of diving experience in commercial, military and sport scuba diving. He is the first scuba instructor to work in Cancun, and founded Scuba Cancun in 1980. Since then he has taken many people on safe and exciting dives.

Tulum/Xel-Ha Ancient Cities
This is a combination of the Mayan history at Tulum, the only archeological zone in the area overlooking the ocean and it’s believed to have been the largest port for the Mayans. And Xel-ha, a natural aquarium which is ideal for snorkeling. You can visit the castle & the temple of the masks of the god Chaac. Combine this rich history with the natural beauty of Xcaret, Mexico and you have a tour you will never forget. For more than a millennium, Xcaret, Mexico was one of the most important ceremonial centers and Mayan ports.

Chichen-Itza
Chichen-Itza is the most impressive of all the Mayan ruins. Find out for yourself why the Mayan culture was the most advance in the world. "El Castillo" pyramid has 91 steps x 4 sides and the one on top for a total of 365. Visit the "ball court" for the game where the winners only had a one game winning streak, as they where then beheaded. The first known calendar, more accurate than the one we use today was, you guessed it, made by the Mayans.

Swim With The Dolphins
Get Kissed by these amazing mammals, caress them, feed them and learn about the incredible anatomy and friendly nature that characterizes them. A once in a lifetime experience!

For these and other many reasons Cancun it’s a great vacation destination, a great place for relaxing and it will be a visit you’ll remember forever.

Hotel Del Coronado

A storybook castle rising at the ocean’s edge. A Victorian landmark that has inspired legends, not to mention legendary romances. A place every bit as youthful and vibrant as when it first opened its doors in 1888. This is the Hotel del Coronado.™

But our greatest attribute is our people. From the moment you arrive, your every need is attended to with effortless skill and genuine hospitality. It’s all part of our commitment to make every aspect of your stay memorable and rewarding.

So relax to the rhythm of the waves as you enjoy a massage on the beach. Explore the quaint pleasures of Coronado Island by bike. Watch the sun set over the ocean as you dine on award-winning California cuisine. And throughout it all, enjoy the warm embrace of one of America’s most cherished seaside resorts.

Location
The Hotel del Coronado is located on 28 oceanfront areas on Coronado Island, just across the bay from downtown San Diego. A 15-minute drive from the San Diego International Airport, The Del is situated near many of San Diego’s attractions.

History
Built in 1888, the Hotel del Coronado is an elegant example of Victorian architecture and is considered one of America’s most beautiful resorts. Founders, Elisha Babcock and H.L. Story dreamed of building a resort hotel that would be the “talk of the Western world.” Since that time, The Del has become a living legend with visits by celebrities, U.S. presidents, and dignitaries from around the world. In fact, publisher Rand McNally credits the Hotel del Coronado as enjoying “more fame and historical significance than perhaps any hotel in North America.”

The Del’s enchanting architecture is said to have been the inspiration for many of L. Frank Baum’s Oz books. The resort’s famed red turret has also been the backdrop for dozens of movies including the 1959 comedy classic Some Like It Hot, starring Marilyn Monroe, Tony Curtis and Jack Lemmon.

Accommodations
Guestrooms at The Del are located in three different areas. Rooms in the original Victorian building have been designed with charming classic décor.

Accommodations in the newer Ocean Towers and poolside California Cabana buildings are decorated with a contemporary ocean-themed motif.

Experience the artful blend of elegance and tradition at the Hotel del Coronado - with 679 recently remodeled rooms in three distinct areas. The Del's most traditional San Diego beach accommodations - housed in the original Victorian building - reflect the resort's classic heritage in their charming décor. The Ocean Towers and poolside California Cabana buildings offer tranquil and soothing Coronado accommodations with a contemporary, ocean-themed motif and Caribbean-inspired design.

Victorian Building
The Victorian Building, a National Historic Landmark, blends romantic, 19th-century ambiance with modern comforts for today's traveler.

Ocean Towers & California Cabanas

The contemporary design of the Towers and Cabana rooms reflects the oceanfront setting through tranquil water-themed colors and fabrics.

Room Amenities
The recently remodeled guestrooms at the Hotel del Coronado combine modern style with a casual sophistication that reflects its beachfront setting. At this celebrated Coronado luxury hotel, we stock your room with every modern comfort, including:
¨ The Del's signature line of personal care and bath products
¨ Plush terry robes
¨ Minibar
¨ 26 television channels, including HBO
¨ Voicemail
¨ High-speed Internet access
¨ Hairdryer
¨ Iron and ironing board
¨ In-room safe
¨ 24-hour in-room dining service
¨ Turndown service, upon request
¨ Nintendo Game Cube videogame system
¨ Daily newspaper delivery

Recreation & Fitness
With year-round sunshine, two pools and a full-time recreation staff, The Del offers an array of fun activities including surfing lessons, biking, kayaking, sailing clinics and more. For those who want to work-out, there is a state-of-the-art Fitness Center and classes. Also, the Coronado Golf Course is just steps away.

Kids & Teens Programs
Tent City Kids’ Camp and Kids’ Crafts are offered year-round. Teens can hang out in the Coast Club Teen Lounge (open during the Summer and December holiday season) or enjoy spa treatments created specially for them.

Services

Guest Services at The Del, a Leader Among Coronado California Hotels
¨ Business Center. The Del's full-service Business Center offers complete support including computer workstations, email access, fax and copy service, office supplies, office equipment rental, shipping, and postal services.
¨ Car Rental. The Hertz desk at the Hotel del Coronado is located directly across from the main entrance to the hotel, adjacent to the transportation desk. The extension is 8539. To call from outside the hotel, dial 619-522-8539 or 619-435-2482.
¨ Childcare Services. Should you want a night out on the town without the kids, we'd be pleased to arrange a babysitter through one of our licensed, bonded, and CPR-certified childcare agents. The agent will entertain and take care of your loved ones in your room. To arrange childcare services, email concierge@hoteldel.com.
¨ Concierge. The concierge at the Hotel Del can assist you with information about hotel activities, hotel amenities, recreational opportunities, and more. Contact The Del Concierge at concierge@hoteldel.com.
¨ Guest Email. Send guest emails to businesscenter@hoteldel.com. Please include the guest name in the subject line. The email will be printed out and treated as a fax.
¨ Guest Fax. Send guest faxes to 619-522-8262. Please include guest name and room number.
¨ Transportation Service. For individual needs, contact our transportation service at (888) 726-4504. For group transportation services, contact Del Destinations at (619) 522-8813.