INTL FCStone 2005 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2005 INTL FCStone annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 85

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85

INTERNATIONAL ASSETS HOLDING CORPORATION AND SUBSIDIARIES
Notes to the Consolidated Financial Statements—(Continued)
September 30, 2005 and 2004
capital contribution was allocated as $100,401 share capital and $399,599 excess capital. The excess capital
contribution was made by the Company in recognition of the asset management skills and relationships
contributed by CIC. The excess capital contribution has a liquidation preference of three years. The Company is
entitled to receive 50.1% of the profits and losses of INTL Consilium. The Company and CIC each hold two
seats on the board of directors of INTL Consilium. Two principals of CIC actively manage this business. The
Company has assessed the joint venture using the consolidation criteria in FIN 46R and concluded INTL
Consilium is not a VIE. Accordingly, the Company assessed the consolidation criteria established by EITF Issue
No. 96-16 by reviewing the participating voting rights of each investee of INTL Consilium and due to certain
specified operating matters that require board approval concluded to use the equity method of accounting for its
investment in INTL Consilium.
For the fiscal years ended September 30, 2005 and 2004 the Company has recorded income of $217,585 and
a loss of $40,925, respectively, for its 50.1% share of the joint venture’s income and loss for the two periods.
Below are the unaudited condensed statement of operations and condensed balance sheet of INTL Consilium.
INTL Consilium, LLC
Condensed Statement of Operations
For the year ended September 30, 2005 and
For the period from inception May 11, 2004 through September 30, 2004
(Unaudited)
2005 2004
Revenues:
Management and investment advisory fees ...................... $1,521,046 $164,473
Interest income ............................................ 4,138 1,963
Other.................................................... 27,353 930
Totalrevenues ........................................ 1,552,537 167,366
Non-interest expenses:
Compensation and benefits .................................. 771,252 172,148
Occupancyandequipmentrental .............................. 45,968 12,290
Professional fees ........................................... 87,601 13,887
Depreciation .............................................. 11,048 839
Businessdevelopment ...................................... 74,601 22,942
Insurance ................................................ 52,750 13,487
Other.................................................... 72,169 13,458
Total non-interest expenses .............................. 1,115,389 249,051
Netincome(loss) ...................................... $ 437,148 $ (81,685)
F-16