eTrade 2000 Annual Report Download - page 66

As discussed in Note 3, the consolidated financial statements give retroactive effect to the acquisitions of ETFC and VERSUS
Technologies, Inc., with and into E*TRADE Group, Inc. on January 12, 2000 and August 28, 2000 respectively, which have been
accounted for as poolings of interests.
/s/Deloitte & Touche LLP San Jose, California
October 19, 2000
71
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Board of Directors and Stockholder of
E*TRADE Financial Corporation and Subsidiaries:
We have audited the consolidated statements of financial condition of E*TRADE Financial Corporation (a Delaware corporation) and
subsidiaries as of September 30, 2000 and 1999, and the related consolidated statements of operations and comprehensive loss,
changes in stockholder’ s equity and cash flows for the years ended September 30, 2000 and 1999 and the year ended December 31,
1998 (not separately presented herein). These financial statements are the responsibility of the Company’ s management. Our
responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of
E*TRADE Financial Corporation and subsidiaries as of September 30, 2000 and 1999, and the results of their operations and their
cash flows for the years ended September 30, 2000 and 1999 and the year ended December 31, 1998, in conformity with accounting
principles generally accepted in the United States.
As explained in the financial statements, effective January 1, 1999, E*TRADE Financial Corporation and subsidiaries changed its
method of accounting for start-up activities in accordance with Statement of Position 98-5, Reporting on the Costs of Start-up
Activities .
/s/ Arthur Andersen LLP
Vienna, Virginia
October 13, 2000
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E*TRADE GROUP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
September 30,
2000 1999
ASSETS
Cash and equivalents $ 175,443 $ 157,705
Cash and investments required to be segregated under
Federal or other regulations
125,862 122,412
Brokerage receivables—net 6,542,508 2,982,076
Mortgage-backed securities 4,188,553 1,426,053
Loans receivable—net 4,172,754 2,154,509
Investments 985,218 828,829
Property and equipment—net 334,262 181,675
Goodwill and other intangibles 484,166 18,554
Other assets 308,671 160,361
Total assets $ 17,317,437 $ 8,032,174
LIABILITIES AND SHAREOWNERS’ EQUITY
2002. EDGAR Online, Inc.