Managing Financial Resources in the Hospitality Industry

Managing financial
resources in
Hospitality industry

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Question 1: Describe GAAP principles and identify the users of financial statements along
with their needs for taking decisions...........................................................................................3
Question 2: Elaborate which financial statement is of most interest to the following persons.. 4
Question 3: Discuss the components of supplement of annual report. Also discuss financial
reporting concept.........................................................................................................................5
Question 4: Evaluate the performance of Smart Resort Ltd.......................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Management of monetary resources means controlling and monitoring the issues related
to finance and evaluating the performance of company with a motive of increasing its
profitability. It is very critical concept as it is impossible to correctly interpret the situations of
external environment and its impact on the internal operations of business. There are many
measures which helps in managing the money of business such as framing budget, evaluating the
current position of organisation and preparing a well proof policy for the recovery and payment
of debts. There are some rules and regulations that assists the companies in documenting all their
records properly. These reports are then used by stakeholders for generating information about
the performance of business (Lee, Hwang and Kang, 2020). This report is based on Smart Resort
Ltd. It discusses about the generally accepted accounting principles and the needs of users of
financial statements. It further evaluated the interests of various creditors along with components
of financial statements. The report also analysis the performance of Smart Resort by comparing
its ratios of last two years.
MAIN BODY
Question 1: Describe GAAP principles and identify the users of financial statements along with
their needs for taking decisions.
Generally accepted accounting principles provides details about the recording structure of
transactions in books of accounts. It set some standards and procedures which must be followed
by companies at the time of compiling of financial statements. In UK, all the listed companies
are bound to adopt these principles of IFRSs and the other firms are set free. They can choose
from GAAP and IFRS codes. It provides complete definition of the financial institution. All the
rules related to assets, liabilities and their valuation is mentioned in these standards. Their is also
a detailed information about the treatment of intangible and fictitious assets held by the
business. The principles of GAAP also provides data about the adjustment of various expenses
and incomes. It also gives knowledge about the items which are eligible for taking advantage of
reducing tax and which are not (Weygandt and et. al., 2019).
The GAAP codes, too deals with the behaviour of sincerity, regularity, consistency,
prudence and continuity. It expects that the company must apply all these attributes while