Accounting for the furniture, fittings and equipment reserve in hotels

Turner, Michael J. and Guilding, Chris (2010) Accounting for the furniture, fittings and equipment reserve in hotels. Accounting and Finance, 50 4: 967-992.


Author Turner, Michael J.
Guilding, Chris
Title Accounting for the furniture, fittings and equipment reserve in hotels
Journal name Accounting and Finance  (ERA 2012 Listed)    (ERA 2010 Rank B)   Check publisher's open access policy
Publication date 2010-12
Sub-type Article
DOI 10.1111/j.1467-629X.2010.00347.x
Volume number 50
Issue number 4
ISSN 0810-5391
1467-629X
Start page 967
End page 992
Total pages 26
Place of publication Richmond, VIC, Australia
Publisher Wiley-Blackwell Publishing Asia
Collection year 2011
Language eng
Abstract The somewhat idiosyncratic accounting procedure of maintaining reserves to fund furniture, fittings and equipment (FF&E) capital expenditure in hotels mediated by a management contract is examined. Five research objectives have been pursued: (i) ascertaining contrasting motives of owners and operators with respect to FF&E reserve accounting; (ii) determining FF&E reserve accounting approaches adopted in hotels; (iii) determining the amount assigned to FF&E reserves in hotels; (iv) determining the sufficiency of FF&E reserves in hotels; and (v) appraising the degree of ease with which hotel operators can draw on FF&E reserve funds. These objectives have been pursued through the analysis of qualitative field data as well as survey data collected in Australia and New Zealand. The study’s more significant findings include the determination that, consistent with the wishes of operators, maintaining cash funded FF&E reserves is the most popular approach (particularly in small hotels). It has also been found that FF&E reserves are 40 per cent underfunded. This deficiency beckons a question over whether hotel FF&E reserve accounting serves any meaningful role. © 2010 The Authors. Accounting and Finance © 2010 AFAANZ
Keyword FF&E reserve accounting
Hotel management contract
M41–Accounting
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article
Collections: Official 2011 Collection
UQ Business School Publications
 
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Created: Fri, 05 Nov 2010, 10:23:10 EST by Dr Michael Turner on behalf of UQ Business School