7200 Financial Reporting Guide 7231 Overview of Financial

7200. Financial Reporting Guide, 7231 Overview of Financial Statements A. The Purpose of Financial Statements The purposes of Financial Statements are to report on the financial health of the business. Financial Statements are also needed for report to taxing agencies. B. Reporting Periods Our Hotel fiscal year is the calendar year, January 1 st through December 31 st. Our reporting periods are the twelve calendar months of the year. Continue ► FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. , confidential and proprietary 1

7200. Financial Reporting Guide, 7231 Overview of Financial Statements C. Types of Financial Statements There are three core financial statements: v the Balance Sheet, v the Statement of Changes In Financial Position, and v The Income Statement is often referred to as the “Profit & Loss Statement” or “P&L”. More information about specific Financial Statements is contained in the following three sections, Balance Sheets, Statements of Changes in Financial Position and Income Statements. Continue ► FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. , confidential and proprietary 2

7200. Financial Reporting Guide, 7231 Overview of Financial Statements D. The Accounting Method See the sections of this Guide titled Accounting Method and Chart of Accounts for guidelines on our accounting methods used. E. Responsibilities The accountant is responsible for preparing and distributing accurate and timely Financial Statements. Hotel general managers are responsible for providing them with accurate and timely information needed by the accountants. Continue ► FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. , confidential and proprietary 3

7200. Financial Reporting Guide, 7231 Overview of Financial Statements F. Timeliness of Financial Statements The accountant distributes the first draft of the Financial Statements according to the agreed schedule—preferably by the tenth day of the month for the period ending the last day of the prior month. He or she also distributes the “final” or corrected draft according to the monthly due date—preferably by the 15 th day of the month. See the Hotel-specific Accounting Information Guide for your Hotel’s schedule. G. Ownership and Confidentiality of Financial Statements All Financial Statements are the property of the Hotel. The information that they contain is confidential and may not be distributed other than as shown in the Hotel-specific Accounting Information Guide without the approval of the Hotel owner or the president of MMI. Continue ► FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. , confidential and proprietary 4

7200. Financial Reporting Guide, 7231 Overview of Financial Statements H. Recordkeeping We keep Financial Statements for business unit managed by the Company electronically or in print for 20 years from the date of the statements. Marin Management does not have any responsibility to keep financial records after being managed by the Company. End FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. , confidential and proprietary 5

7200. Financial Reporting Guide, 7231 Overview of Financial Statements FINANCIAL MANAGEMENT GUIDE © Marin Management, Inc. , confidential and proprietary 6