International Accounting Standards: Re: [International_Accounting

Further to below mail, I would suggest that you can define various Operating Business Units/Profit Centres with direct revenues & direct costs. In addition to it, some cost centres/overheads can be defined, whose costs can be allocated to direct Business Units based on revenues or some other reasonable basis.

For example, a Hotel can be divided in to 3 Divisions i.e. Accommodation, Catering & Other Services like Conference Hall/Seminars Centre/Internet Cafe etc. Under each Division, we can define some direct Business Units/Profit Centres, e.g. under Accommodation, we can define Single Rooms, Double Rooms, Family Rooms, Deluxe Apartments as separate direct Business Units. For each Bunisess Unit, we will enter all Direct Revenue & Direct Cost. Such Cost of Accommodation Division, which can not be treated as direct cost of any BuniessUnit (For Example, Accommodation Manager Salary etc.), can be considered as Divisonal Overhead & can be allocated to these Business Units based on their Revenues/any othersuitable basis. Same treatment can be done for all Business Units.

In addition to Divisional Overheads, there can be Departmental Overheads (For Example, Finance Department, Procurement Deptt, Sales Deptt, HR & Admin Department). These Costs can be allocated to all divisions based on Revenue/any other suitable basis.

Monthly P& L can be prepared for each direct BU under each Division, then Consolidated P & L for each division & at the end consolidated P & L for the whole Company/Hotel can be prepared.

I hope above will help you. In case of any clarification/confusion, please feel free to contact me.

Best Regards,

Muhammad Amin Ahsan

albert ekuful <aekuful@yahoo.com> wrote:

Which aspect do you want? Bookkeeping or Financial Reporting?

Depending on the sections or departments you have in the hotel, you may treat each as a profit centre where costs and revenues can be assigned.

There after a consolidated income statement can be prepared for the hotel.

Berto

----- Original Message ----
From: Mohammed Nizam <e2nizam@yahoo.co.in>
To: International_Accounting_Standards@yahoogroups.com
Sent: Thursday, December 6, 2007 4:23:00 PM
Subject: [International_Accounting_Standards] Hotel Accounting

Pls let me know about Hotel industry Accounting Systems

Awaitnig for earlier replay

Thanku

Nizam

Chat on a cool, new interface. No download required. Click here.

Looking for last minute shopping deals? Find them fast with Yahoo! Search.