Questions:
1. Discuss the important issues in determining the financial and management reporting requirements.
2. Assess who are the important groups to liaise with if there are any reporting issues.
3. Evaluate how you would plan to ensure that deadlines are met and all reporting issues are resolved.
This report encompasses with the applications and practices of the management accounting in the hospitality and tourism industry. In the recent years, the world has experienced a rapid growth in this industry which leads to the consequences of complex transformation from the global competition in the market through the evolution of the technological advances. Therefore, the organizations are compelling themselves to redefine their business foundations and seek solution to survive and prosper in the long run. However, Management Accounting has evolved in this response to the productive changes and considering the new horizons for the organizational environment. This influences the strategy for developing the accounting system adopted by the firm (Urquidi, 2013).
Intercontinental Hotel Group is one of the most recognized multinational hotel companies in the world, founded in 2003. It owns seven brands in the hotel industry providing the facilities of high class aimed at serving the leisure traveler and discerning business. Its headquarter is located in Denham, United Kingdom. The company generates more than 80% of profit from the predominant franchised and managed hotels. The company has developed its strategy to take the advantage of the increasing popularity across the new market and low cost airlines. It has done substantial investment to develop its brand with the successful refinancing strategy (ihgplc, 2016)
Intercontinental group of hotels has set their reporting standards according to Australian Accounting Board (AASB). The laws institutionalized by the organization are based on the Corporations Law Entities mentioned under the section 296 of Corporations Act 2001. These laws and standards comprises of general purpose financial reports issued by the reporting entities of private sector. This organization has taken the measured approach for making evaluation of the financial and prudential implications of IFRS. It is necessary for every organization to comply with the financial reporting standards (Perera & Chand, 2015).
The main role of the organization behind the compliance of the financial reporting standards is:
While making determination of the financial and reporting requirements, the reporting team has monitored a wide variety of issues just because of the attraction created by the global organizations in the market. Implementation of the financial reporting standard is a challenge for the non-public accountable entities (Schipper, 2003).
As per the Securities and Exchange Commission (SEC), the International Reporting Standards (IFRS) is circulated by the requirements of removing the reconciliation for the foreign private issuers. For the Intercontinental Group of Hotels, preparation of the financial statements is always a demanding responsibility for the group requiring for the input of the highly trained professionals. The financial reporting standards are the result of the efforts of the standard setters. They provide information related to the financial statements while making balance of the costs and the required budget. With the growing complexities of the Hospitality and tourism industry and their transactions, the demands of the public scrutiny and regulatory bodies has added value to the reporting standards(Gebhardt, 2006).
The following are the complexities that are faced by the organization while making determination of the reporting and management requirements:
The company predominantly manages and franchises its hotels with the enabling strategy to grow its business, generating high returns on the capital invested by the firm. They operate its business on behalf of the owners of the third party hotels. To drive the expansion and growth in the business, Intercontinental Hotel Group makes its presence in the priority market. The company consists of the key persons identifying and managing the related issues with the accounting. In order to overcome with the strategic business issues, the company established the integral part of the business vision stronger, offering the most consistent experience to the owners and customers of the company.
Intercontinental Hotel Group manages more than 650 hotels across the world having control over its activities. To implement its strategy, it is closely related with the owners of the hotel shape the hotel to with the support of the management tool. The company’s owners and holders of the franchisee reports in the hotel on the issues related to the community and environmental activities. However the company provides training for the hospitality jobs in their local communities. It also communicates with the employees about the business information and their performance to solve the issues valuing the company’s prominent feature in the global management process (Dumitru, Calu, Gorgan, & & Adriana, 2011)
The company formally reports to the shareholders twice in a year and holds regular meetings with the major institutional shareholders to discuss about the company’s performance, plans progress and its objectives. If there is rise in the reporting issues, the company report to its shareholders and suppliers. The company engages with its stakeholders to gain the related insight on its key issues relevant to the prior assessment areas determined by the business. It continues to develop the feedback from its stakeholders to strengthen its activities and the engagement programme (Ihgplc, 2011)
To develop the strategy, the organization need to have the information on the activities and the services it performs to develop the plans with the view to keep the financial data in costing and budgeting the related services. The management accounting techniques aims to determine the structure of the company and its revenue according to the principle of managerial costing. It results into many differences with the application of the accounting methods and techniques. These issues are needed to be considered with the related managerial person to evaluate the company’s performance and making the decisions according to the framework of the company. However, it is essential for the company to have good relations with their stakeholders so that the issues can be resolved easily and efficiently. Through this analysis, the identification and assess of the influencing issues can be significantly address with the presence of the important key people of the company. It develops its services according to the need and requirement of the customers in the organization with the less arising issues. Therefore, to expand the reach of Intercontinental Hotel Group, the company develops the strategies identifying the needs of the customer and managing its managerial accounting to lead in the industry and achieve greater success across the globe (Sunarni, 2013)
Most of the organization embraces its sustainability in its reporting issues and managing the system processed by the management. Most of the department tend to posses and improve the reporting process in order to ensure that deadlines are easily met and all the issues are resolved on the priority basis. The business leaders are playing a major role in supporting the operational decision making. The company is pressurized to provide the accurate and reliable managerial information efficiently on time to meet the standards. To address these internal and external reporting issues the company seeks the effective ways in optimizing the efforts of the business activities. There are various significant opportunities for ensuring the deadlines of the report, make better financial decisions, and improving the transparency to the key holders of the company. Through the consideration of the factors available across the business dimension, highly sustainable structure and strategy of the business can be developed. However, through proper planning all the reporting issues can be easily resolved and met with the deadline (Bonner, Hastie, Sprinkle, & Young, 2000)
The company should determine the desired results and monitor the progress of the business by developing the effective plan. The reporting objectives of the overall strategy of the organization should be aligned properly and drives a close check on its key performance. Intercontinental Hotel Group should also consider the opportunities throughout the reporting cycle. The changes should be implemented according to the desired accounting standards. The finance and management accounting function should be properly aligned to enable the strategy of the organization. The alternative operating models of the management accounting must be evaluated to focus on the degree of centralization of the overall function of the finance in the reporting issue. The roles and responsibilities should be clearly assigned to the management. It helps in the contribution of the goals and objectives of the company. This helps in managing the accounting issues proactively and performs the accounting analysis properly (pwc, 2007)
Conclusion
Management accounting plays a very important role in the improvement and success of the business. The accounting investigates the manager’s exercise in the discretion and reporting issues. The company defined their business policies in such a manner that it survives and prospers for the long period of time. However, Management Accounting has evolved in this response to the productive changes and considering the new horizons for the organizational environment. Intercontinental group of hotels has set their reporting standards according to the laws institutionalized by the country and are based on the Corporations Law Entities. The company has developed the management approach for making evaluation of the financial and prudential implications of IFRS (Stede, 2016). Therefore, the company should implement the alternatives for analyzing the financial statements in more detailed manner and the management accounting needs to be considered with the exercise of the accounting discretion.
References
Ball, R. (2001). Infrastructure Requirements fInfrastructure Requirements for an Economically Efficient System of Public Financial Reporting and Disclosure. Brookings-Wharton Papers on Financial Services , 127-169.
Ball, R. (2006). International Financial Reporting Standards (IFRS): pros and cons for investors. Accounting and Business Research.
Bonner, S. E., Hastie, R., Sprinkle, G. B., & Young, S. M. (2000). A Review of the Effects of Financial Incentives on Performance in Laboratory Tasks: Implications for Management Accounting. Journal of Management Accounting Research, 12(1), 19-64.
Dumitru, M., Calu, D. A., & Gorgan, C. (2011). A Historical Approach Of Change In Management Accounting Topics Published In Romania. Accounting and Management Information Systems, 10(3), 375- 396.
Gebhardt, H. D. (2006). International financial reporting standards and experts’ perceptions of disclosure quality. A journal of Accounting, Finance and Business Studies, 461-498.
We provide professional writing services to help you score straight A’s by submitting custom written assignments that mirror your guidelines.
Get result-oriented writing and never worry about grades anymore. We follow the highest quality standards to make sure that you get perfect assignments.
Our writers have experience in dealing with papers of every educational level. You can surely rely on the expertise of our qualified professionals.
Your deadline is our threshold for success and we take it very seriously. We make sure you receive your papers before your predefined time.
Someone from our customer support team is always here to respond to your questions. So, hit us up if you have got any ambiguity or concern.
Sit back and relax while we help you out with writing your papers. We have an ultimate policy for keeping your personal and order-related details a secret.
We assure you that your document will be thoroughly checked for plagiarism and grammatical errors as we use highly authentic and licit sources.
Still reluctant about placing an order? Our 100% Moneyback Guarantee backs you up on rare occasions where you aren’t satisfied with the writing.
You don’t have to wait for an update for hours; you can track the progress of your order any time you want. We share the status after each step.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
Although you can leverage our expertise for any writing task, we have a knack for creating flawless papers for the following document types.
From brainstorming your paper's outline to perfecting its grammar, we perform every step carefully to make your paper worthy of A grade.
Hire your preferred writer anytime. Simply specify if you want your preferred expert to write your paper and we’ll make that happen.
Get an elaborate and authentic grammar check report with your work to have the grammar goodness sealed in your document.
You can purchase this feature if you want our writers to sum up your paper in the form of a concise and well-articulated summary.
You don’t have to worry about plagiarism anymore. Get a plagiarism report to certify the uniqueness of your work.
Join us for the best experience while seeking writing assistance in your college life. A good grade is all you need to boost up your academic excellence and we are all about it.
We create perfect papers according to the guidelines.
We seamlessly edit out errors from your papers.
We thoroughly read your final draft to identify errors.
Work with ultimate peace of mind because we ensure that your academic work is our responsibility and your grades are a top concern for us!
Dedication. Quality. Commitment. Punctuality
Here is what we have achieved so far. These numbers are evidence that we go the extra mile to make your college journey successful.
We have the most intuitive and minimalistic process so that you can easily place an order. Just follow a few steps to unlock success.
We understand your guidelines first before delivering any writing service. You can discuss your writing needs and we will have them evaluated by our dedicated team.
We write your papers in a standardized way. We complete your work in such a way that it turns out to be a perfect description of your guidelines.
We promise you excellent grades and academic excellence that you always longed for. Our writers stay in touch with you via email.