Dissertation on Hospitality Industry

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DISSERTATION
Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................3
1.1 Background to the organisation........................................................................................3
1.2 Rationale of the research..................................................................................................4
1.3 Overall aim of project.......................................................................................................4
1.4 Objectives.........................................................................................................................4
1.5 Methods of analysis..........................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
2.1 Introduction......................................................................................................................7
2.2 Understand the importance ofInternational Financial reporting Standards.....................7
2.3 The benefits of adoption of International FinancialReportingStandards.....................12
CHATPER 3: RESEARCH METHODOLOGY...........................................................................15
3.1 Introduction....................................................................................................................15
3.2 research philosophy........................................................................................................16
3.3 research approach...........................................................................................................16
3.4 Research design..............................................................................................................17
3.5 Data collection................................................................................................................17
3.6 Data analysis...................................................................................................................17
3.7 Validity and reliability....................................................................................................18
CHAPTER 4: DISCUSSION AND ANALYSIS..........................................................................19
Chapter 5recommendationand conclusion...................................................................................22
5.1 Conclusion......................................................................................................................22
5.2 Recommendation............................................................................................................23
Reference.......................................................................................................................................25
CHAPTER 1: INTRODUCTION
1.1 Background to the organisation
From the last few years, International financialreportingstandards have become the
standard of choice for many companies. It is perceived to be more flexible and neutral as
compared to standard of any individual country. They are expected to assistances depositors
through the comparability of financial statements. Hospitality industry is one of the fastest
growingsectorsinallovertheworld.Itissegmentedintovarioussectorsthatare
accommodation, food and beverage, travel and tourism, etc. (Nobes, 2014). The Savoy hotel is
operatingitsbusinessin Hospitalityindustry. It isa multinationaldiversified hospitality
company which manages and franchises a broad portfolio of hotels and related lodging facilities.
Number of employees operating in the firm are more than 177,000. The present research is based
onthe importance and relevance of accounting information after adoption of International
Financial Reporting Standards within Hospitality Industry of United Kingdom.
International financial report standard is usually called as IFRS. It is known as the set of
international accounting standard which shows the way specific type of transaction and other
events which are required to be reported in financial statements. It is issued by international
accounting standard board (Leuz and Wysocki, 2016). Their role is to make clear accurate way
accountants should maintain and report their account. Reason for establishing IFRS is that to
have common accounting languages which can be understandable by both accounts and business
from firm to firm and nation to nation. IFRS is adopted by firm in order to maintain stability and
transparencythroughout the financialworld. Therefore, itallows business and individual
investor to ensure educated financial decisions which help them in looking exactly what is going
in company in which they are interested in investing. IFRS is the standard in various parts of the
world such as European Union, South Africa, Asia, etc.
However, adopting International Financial Reporting Standards provide benefit to both
company as well as country (FriasAceituno and GarciaSánchez, 2014). Nations which are
benefited from the standards are those which have lots of international business and investing. It
is identified that adoption of IFRS leads to save money and alternative comparison cost and
individual investigations (Flower, 2015). There are some standards of IFRS requirements. It
leads to cover various range of accounting activities. There are many aspects of business
practices for which IFRS set mandatory rules.The Savoy hotelcan gain lots of benefits through
adopting International Financial Reporting Standards. It leads to provide an opportunity to attract
international investors.
1.2 Rationale of the research
Reason for conducting the research is to develop in-depth understanding related to the
selected topic that is toidentify the importance and relevance of accounting information after
adoption of International Financial Reporting Standards within Hospitality industry of United
Kingdom (Cheng, Green and Romi, 2014). The present research will help gaining knowledge
related to the accounting principles and the way it kept transparency in between company and
investors. Principles of accounting are known as the rules of actions or conduct adopted by
accountants. The business is becoming more global there is push for a worldwide adoption of
single set of accounting standard. There are many studies which are evaluating the impact of
adoption of IFRS which are related to the higher quality disclosure. Through adopting IFRS,
companies can improve international financial reporting and transparency, pay to a more well-
organized global financial market and enhance international comparability.
IFRS apparently have higher quality as compared to the most domestic accounting norms
and standards as well as many studies have reported its impact. The present research will help in
gaining enough knowledge related to the significance of IFRS and way The Savoy hotel can
adopt it. The research will help people who are carrying out their education program (Adams,
2015). They can learn the way in which IFRS will help company in gaining investors and
making global position in the financial market. The adoption of IFRS can help in gaining
benefits to investors and make use of financial statement for minimizing the cost of investment
and enhance the quality of the information provided. Along with this, investors can become more
willing to provide finance with greater transparency. The IFRS has some goal such as for
developing global accounting standards requiring transparency, comparability and high quality in
financial statements.
1.3 Overall aim of project
Aim: To identify the importance and relevance of accounting information after adoption of
InternationalFinancialReportingStandards(IFRS)withinHospitalityIndustryofUnited
Kingdom – A study ofThe Savoy hotel.
1.4 Objectives
To understand the importance ofInternational Financial Reporting Standards
To evaluate the impact of International FinancialReportingStandards on financial
disclosure of the Savoy hotel.
To analyse the benefits of adoption of International FinancialReportingStandards on The
Savoy hotel
To recommend strategies for successful adoption of International FinancialReporting
Standards by the Savoy hotel.
Research questions
Q1. What is theconceptofInternational Financial Reporting Standards?
Q2.How likely the adoption ofInternational FinancialReportingStandardswill beonthe
financial disclosure of Savoy hotel?
Q3.Why it isbeneficial to undertake the standards ofInternational FinancialReportingbySavoy
Hotel?
Q4. What are the strategies forasuccessful adoption of International FinancialReporting
Standards by Savoy hotel?
Q5. What are the consequences of adopting IFRS by the hospitality based firms in UK?
1.5 Methods of analysis
Research methodology is the section that provide information related to various methods
that can be used for analysis of the research. Various tools and techniques which are covered in
this study are data collection method, research approach etc. Here below are some tools and
techniques that will be used in the present research.
Research Philosophy:
It is known as one of the crucial component of research methodology and assist in
understanding the way through which information can be gathered in context to analyse the
study. Here one of the aim of investigator is to carry out study so that set of results can be
accomplished. Therefore, it is considered as effective method to conduct the research and
gainingproperresults(Guix,Bonilla-PriegoandFont,2017).Therearetwotypesof
philosophies that are interpretivism and positivism. These both philosophies are different from
each other and helpful for carrying out the research. Positivism focus on believing that reality is
of stable nature that can be shows and detected from the views of research objectives. On the
other side interpretivism is known as research philosophy that could be defined as relatively not
reasonable for gathering information to develop understanding for particular subject matter. For
the present research interpretivism philosophy. will be used by the scholar which assist in
choosing qualitative set of data to examine the study. Reason for selecting this method is that it
helps in analysing the benefits of adoption of IFRS for Hilton hotel. It also assists in supporting
crucial findings and getting useful information so that company can adopt IFRS in an effective
manner.
Research approach:
Research approach is known as the method in which investigator can conducts the
research in an effective manner. It can be stated as a plan that help in improving the validity of
the research at large extent (Bailly and Comino, 2017). It is classified into two types inductive
and deductive approach. For the present research inductive approach will be used by the scholar.
Inductive approach makes research from the specific condition for developing a wider general
ideas and theories regarding subject matter. The assessment can be carried out for sake of
developing theories. Reason for selecting this method is that it is suitable in getting valid
outcome.
Data collection method
Data collection method is known as the method which is considered as effective tool in
respect to collect the information from different sources. Through collecting information from
different sources research can easily reach to the valid outcome. It is comprising of two types
primary and secondary (Wright, Wahoush and Jack, 2016). Secondary information is that which
is already published in the books and journals by different authors. The present dissertation aim
istoidentifytheimportanceandrelevanceofaccountinginformationafteradoptionof
International Financial Reporting Standards within Hospitality industry of United Kingdom,
therefore secondary method will be considered for getting valid outcome. All the secondary
information will be gathered from the books and journals. Through collecting secondary
information researcher can easily incorporate views of authors that help in making research more
effective. Further it assists researcher in reaching to the valid outcome. Along with this, different
theories will be incorporated such asthe diffusion of innovationstheory, world-level institution
theory and institutional theory.
Data analysis:
Data analysis is known as one of the important method on the research which help on
reflecting the effectiveness of data which is being accessed from different sources of data
collection secondary and primary. After collecting information, it is important to analyse it with
the use of effective tools and techniques (Kerr, Eckert and Wandwabwa, 2016). Through
analysing the information, it will become easy to generate appropriate results. Based on outcome
the researcher can describe whole finding and generate valid conclusion. There are two methods
through which information can be analysed qualitative and quantitative. For the present research
qualitative method will be considered by the scholar. In this several themes will be prepared and
views of different authors will be analysed in an appropriate manner. The entire study is based
on qualitative analysis.
Tools and Framework
Facilitates comparability
Standardization
Assists stakeholders over the globe in decision making
Helps them in investing money internationally'
CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
The section of literature review is considered as one of the important part that is attached
with the thesis. The main reason behind carrying put the particular chapter is to develop a
suitable framework on the basis of selected topic. This chapter will provide views and opinion of
different authors which is incorporated by them in their study. The present chapter will cover the
importance ofInternational Financial Reporting Standards for the hospitality industry. Along
with this, the impactof International FinancialReportingStandards on financial disclosure of the
Savoy hotel is discussed.
2.2 Understand the importance ofInternational Financial Reporting Standards
According to the view of Nobes, (2014)accounting principle is considered as the best
media which can be used by firm for communication between different stakeholder and
company. It helps them in measuring and develop understanding related to the firm performance.
According to the view of Lang and Stice-Lawrence, (2015)international Financial
Reporting Standards is known as the set of accounting standard which is constructed by the
international standards board which is become the global standard for making of public financial
statements. Reason for developing IFRS is to develop the public interest, understandable,
enforceable, a single set of high quality and globally accepted financial report. It is fully based
on the clearly articulated principles. Since from last few years IFRS has become standard of
choice for many jurisdictions. It is considered as more flexible and neutral as compared to
standard of the single nation. They are expected to advantage stockholders over the better-quality
comparability of monetary statements.
As per the view of Christiaens, Vanhee and Van Cauwenberge, (2015), International
financial reporting standards is known as set of principle which is based on issues and
establishment through international accounting standards. Along with this, it is basically adopted
by various countries in all over the worlds. It also leads to make sure transparency and
comparabilityinaccountingpractice.ThroughadoptingIFRScompanycaneasilymake
improvement in its comparability and transparency of financial accounting information. These
both are considered as key qualitative characteristics of financial information which is more
useful for the users.
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