Hospitality accounting
Plain-English guides to the accounting issues hospitality companies face, each with a worked example from the industry.
Hospitality accounting guides
- Hospitality accounting: the key IFRS issues3 minute readHospitality accounting explained: hotel management and franchise fees, loyalty points, hotel property and depreciation, leases, vouchers and impairment.
- Hotel management agreements4 minute readHotel management agreements under IFRS 15: base and incentive fees, key money, performance guarantees, reimbursed costs and the hotel owner's side.
- Hotel franchise fees4 minute readHotel franchise fees under IFRS 15: the brand licence as a right to access, royalties as room revenue is earned, initial fees, marketing funds and incentives.
- Hotel loyalty points4 minute readHotel loyalty points under IFRS 15: points as a material right, allocating the room price, breakage, redemptions at other hotels and co-branded credit cards.
- Hotel property and depreciation4 minute readHotel property under IAS 16: why operated hotels are not investment property, component depreciation, refurbishments, pre-opening costs and revaluation.
- Restaurant leases4 minute readRestaurant leases under IFRS 16: turnover rent, airport concessions with minimum guarantees, subleases to franchisees, drive-thru ground leases and US GAAP.
- Gift vouchers and prepaid stays4 minute readGift vouchers and prepaid stays in hospitality under IFRS 15: contract liabilities, breakage, non-refundable rates, no-shows, cancellation fees and deal sites.
- Hotel impairment4 minute readHotel impairment under IAS 36: each hotel as a cash-generating unit, value in use with the FF&E reserve, cap-rate fair value, allocation, reversals and US GAAP.
- Timeshare revenue4 minute readTimeshare revenue under IFRS 15: when a vacation ownership sale is recognised, rescission periods, buyer financing, credit losses, fees and the US GAAP rule.
- Tour operators: principal or agent4 minute readTour operator revenue under IFRS 15: package holidays as principal, travel agents and online agencies as agents, timing, deposits and committed hotel and seats.
- Service charges and tips4 minute readService charges and tips under IFRS 15: when a mandatory service charge is revenue, why voluntary tips are not, tronc schemes, payroll and US tax rules.
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About these guides
Each guide starts from an accounting issue hospitality companies actually face and works through it with numbers from the industry. 11 of 11 planned guides are published; more are added with every batch.