Impact Of IFRS On Accounting Procedures For Hotel Companies In The USA

Project Objective

The main purpose of this research study is to reflect on the requirement for the systematic approach to accounting, what we have acquired to date and to suggest preliminary maps of where we need to go and what is required to be done to get there. Companies across the financial service industry are mainly facing enhanced risks as a result of the increasing complexities offered by accounting and regulatory requirements. The main key to staying ahead in the evolving environment is for the finance department to be drivers of value and makes sound policies, process, and decisions of technology that are based on comprehensiveness. The tourism industry is mainly encouraged for mainly working on the processing by offering effective comments of The Global Marketplaces.  IFRS mainly works out on the effective impacts on the hotel company’s accounting process and the roles and procedures that also offers a proper and effective strategy for the positive changes in the organizations. 

On the basis of the problems determined, the research study is performed for the following purposes:

• To determine the accounting process followed by tourism industry
• To determine the impact of the accounting procedures on productivity in tourism industry
• To determine the challenging factors of accounting
• To analyze the solutions for the impact of the challenging factors 

In the current time, it has been determined that the significant changes in the accounting system works of USA with the accounting information system and to handle out the global competitive marketplace accounting and the financial functions, it is quite important to determine the optimized recipe for the success of the business. It comprises of the stewardship of the values of shareholder along with the alignment of the objectives of company and operations. The IFRS (International Financial Reporting Standards) comprises of major impacts on the process of accounting and the procedures of the hotel companies with the strategies that can be put forward for the positive changes along with the management and handling of the comparative forms of the financial information. The research study will be aiming towards analyzing the accounting procedures at varied financial companies of the USA. This research study shall also offer solutions to the existing issues at practical levels for the purpose of overcoming the issues that the hotel industry in the USA is facing.  

The tourism industry helps the GDP of the country to grow to an adequate level with the contributions mainly towards the development of the economy. With the globalized economy and the environment of business, the assessment of the system of accounting has been very important. The accounting procedures tend to offer information regarding the company as well as the transactions that tends to facilitate towards allocation of the resources with the main decisions that are made by the users for the information (Dopson & Hayes, 2016).

Project Scope

Every business comprises of varied issues of accounting that comprise of:

• The payroll system affects the accounting information. The labor laws have been established with the payroll for the groups where there are employees like the workers who requires handling the process of back office
• The scheduling of the project also affects accounting procedures. The scheduling is established wherein the hotels live on the basis of ebb and the flow is mainly for the spikes of the season in the business. with this, there is right software for payroll, wherein the owners can manage the ways for controlling the costs of staffing. The payroll system tends to integrate the timecard solutions wherein there is scheduling that is based on the details of the calendar.
• The inventory tracking also affecting accounting(Esparza-Aguilar, et al., 2016)

There is a requirement for keeping the track through the usage of right accounting software (Turner, et al., 2017). The Quick books can easily manage the features with the integration seamlessly. For this purpose, there are needs of point of sale software systems that can help in handling and managing the accounting payments as well as the payroll system, inventory system and the standards of auditing. The software will be helpful in offering better and enhanced services of security.

The main key challenge faced by hotel and tourism firms are to develop excellent practices of accounting systems that offer set of measures to account for how the unions utilize their resources for meeting the core goals which includes the measures of what constitutes a financially healthy company that help in sustainment (Lempert & Nguyen, 2017). The accounting systems of the hotel and tourism firms need to acquire transparent and open reporting to the boards. Finally, the system should also offer management with the measurement tools they need for managing the transactions (Ragab & Meis, 2016).

According to the analysis. there are any diversified forms of the risks and challenges in the industry of hotel that comes from the rate of the contracting to the engineering and then to delivery systems. The complexity is mainly related to the system of information and to handle out the processes/ The major foundation and focus have been laid on the management of the uncertainties in the risk profiling that comes towards the unpredictability of the hotel industry (Kudrna & Müller, 2016). There is an inadequacy in the auditors which mainly tends to get the key staff members without many supervisions and that grasps the issues. The changes in the procedures come with the services that are being offered. For the purpose is good manager of accounting it is very important to focus on how the managers can spend the time on the monitoring of accounts. There are many barriers to enters where the globalized market is set with the barriers for the trading also with the management of the firm. The standards of accounting are set with the activities that associated with the usual environment along with the development of the economy. The utilization of the accounting systems in the hotel industry is very important. The emphasis is on the practices of a competitor where the major focus is kept on the functions of accounting. The procedures of accounting  tend to determine the varied factors that comprise of (Engel, 2016):

• The measurement procedures for determining and quantifying the activities of economies. The processes comprise of the strengths and financial positions
• There have been major disclosures towards the procedures wherein the measurement of the accounting are communicated towards users
• The auditing procedures that has been laid by the professionals of accounting and who mainly tends towards work on the reliability of the measurement of communication(Scafarto, et al., 2016)

Literature Review

There are some accounting processes that are important for the purpose of handling the belts of security of the business. The avoidance of the income loss because of the misuse of the operational activities plays important role in the verification of the incomings (Islam, 2017). The operations in the hotel industry comprise of varied forms of incomes and expenses and for this, there are many sections that focus on profits. The utilization comprises of hotel units like the bedrooms and the restaurant. The research has been focusing on the fields of operations that are important for the cost management. Capital is important for hotel firms and major risk is related to the loss of capital and the credit risk. There are varied techniques like the Quick book that are applied for accounting that also dominates the small number of institutions. The accounting process is based on the determined concerns with the varied areas of interest and the findings of research.  For the purpose of the effective accounting system, there is a requirement to represent the company in the way where the users can determine the formats (Scafarto, et al., 2016). 

Primary Question

• What are the factors that affect the accounting of global hotel firms

Secondary Questions

• What are the ways in which factors affect accounting process
• What are the possible solutions for global accounting process management

Research methodology will be stating the techniques through which the data have been collected for the report. Based on this, the assessment of findings will be done

• Qualitative research: In this research study, in-depth analysis of the research question will be done in the context of the real-world accounting issues. No numerical measurement will be involved
• Quantitative research: In this research, the numerical measurement will be involved. in the design, statistical figures and models will be developed. This will helps in ensuring validity and reliability of the research study 

Primary Data: Primary data will be collected through the survey instrument. A survey will be collected with the accounts department employees of the hotel firms. 30 respondents will be chosen for the survey. Structured survey will be developed

Secondary Data: Secondary data will be collected from the previous research papers, articles, and journals. Through the secondary data, information will be collected with respect to the objectives of research and research papers. through this, the data will be collected in respect of the research objectives and the research questions.

Convenient sampling will be utilized for this research study for saving time and cost

A sample size of 30 will be selected for the report. The sample has been selected based on the random sampling techniques. In this methodology, there are no biases while the selection of the sample (Singh, 2010).

Following steps will be taken into consideration to make the research valid

• Usage of logical reasoning
• Articles and other sources will be covering full range of issues or problems
• Each research question on the research instrument will have logical link with objective(Bhattacharyya, 2006).
• It will be checked whether secondary sources are comprehensive enough for collecting information required for addressing purpose and goals of the study (Rajasekar, et al., 2013).

For checking reliability, several points will be checked:

• Collection of data: For making the research look reliable, reliable online data will be collected by thorough study.
• Date of Data Presentation: Before extracting data, data of reviews will be checked prior(Kumar, 2008).
• Data consistency: Reviews of customer for similar hotel will be verified so as to see if the data is consistent with the data from other sources(Rajasekar, et al., 2013). 

• There is possibility of inaccuracy of data, as the data will be mainly collected from a small sample
• Because of the privacy concerns in context to the hotel firms, there is possibility of data manipulation
• As the employees and the managers represents hotel firms, therefore the data can information can be contradictory (Khan, 2011) 

Steps of Research	Time Period
Research Proposal	1 week
Introduction	2 weeks
Literature Review	4 weeks
Research Methodology	3 weeks
Data Collection & Analysis	3 weeks
Findings, Conclusion & Recommendations	2 weeks
Final Report Writing & Proof Reading	2 weeks

Conclusion

Just like other industry, even hotel industry focuses on the process of decision making as well as on the controlling of the process. The financial reports are important for the management of the hotel and facing the varied issues. What actually matters is the core of the liability of the firm along with the planning and controlling the revenues as per the costing of the hotel firm. With this, the mangers needs to analyze the factors of profitability along with the research of the department of finance that plays an important and effective role for the purpose of strengthening the cost structure. The research study will be focusing on determining the issues in accounting and the suggestions for overcoming the issues.  

References

Bhattacharyya, D. K., 2006. Research Methodology. s.l.:Excel Books.

Dopson, L. & Hayes, D., 2016. Managerial accounting for the hospitality industry.. s.l.:Wiley Global Education..

Engel, C., 2016. A Primer on the Accounting and Reporting Requirements for Not-for-Profit Organizations.. Journal of Public Management Research,, pp. 2(1), p.14.

Esparza-Aguilar, J., García-Pérez-de-Lema, D. & Duréndez, A., 2016. The effect of accounting information systems on the performance of Mexican micro, small and medium-sized family firms: An exploratory study for the hospitality sector., s.l.: Tourism Economi.

Islam, M., 2017. Future of Accounting Profession: Three Major Changes and Implications for Teaching and Research., s.l.: Business Reporting, International Federation of Accountants (IFAC)..

Khan, 2011. Research Methodology. s.l.:APH Publishing.

Kudrna, Z. & Müller, P., 2016. Harmonizing Internationally to Harmonize Internally: Accounting for a Global Exit from the EU’s Decision Trap.. JCMS: Journal of Common Market Studies..

Kumar, R., 2008. Research Methodology. s.l.:APH Publishing.

Lempert, D. & Nguyen, H., 2017. Accounting for Threats to Sustainable Development: An Indicator for Holding NGOs and International Organizations Accountable to Creating the Context forSustainable Development. Consilience. The Journal of Sustainable Development, (Seventeen)..

Ragab, A. & Meis, S., 2016. Developing environmental performance measures for tourism using a Tourism Satellite Accounts approach: a pilot study of the accommodation industry in Egypt.. Journal of Sustainable Tourism,, pp. 24(7), pp.1007-1023..

Rajasekar, S., Philominathan, P. & Chinnathambi, V., 2013. RESEARCH METHODOLOGY, s.l.: arxiv.

Scafarto, V., Ricci, F. & Scafarto, F., 2016. Intellectual capital and firm performance in the global agribusiness industry: the moderating role of human capital.. Journal of Intellectual Capital,, pp. 17(3), pp.530-552..

Singh, Y. K., 2010. Research Methodology. s.l.:APH Publishing.

Turner, M., Way, S., Hodari, D. & Witteman, W., 2017. Hotel property performance: The role of strategic management accounting.. International Journal of Hospitality Management, , pp. 63, pp.33-43.