Analysis of Financial Reporting for Travel and Tourism Sector

This report provides an analysis of financial aspects within the travel and tourism sector, focusing on the application of management accounting systems and financial statements. The analysis includes a detailed look at the financial performance of the Dalata Hotel Group, examining key tools like income statements, cash flow statements, and balance sheets. The report further explores variance analysis, budgeting, and management information systems as crucial components for informed decision-making. It also examines the use of ratio analysis and other financial tools to assess performance trends, identify deficiencies, and develop strategic measures. The study leverages insights from established financial and management accounting literature to support its findings.

Finance and Funding in Travel and Tourism Sector
TASK 2

Management accounting systems are highly significant
that provide manager with suitable inputs for decision
making. Main MA tools that Dalata Hotel group Plc
can undertake are as follows:
Financial statements
 Income statement
 Cash flow statement
 Balance sheet
2.1 Explaining different types of management accounting
system that can be used by Dalata Hotel Group Plc

 Variance analysis
 Budget
 Management Information System (MIS)
CONTD…

Management team of Dalata hotel group Plc can take competent
decisions using management accounting information in the
following manner:
Financial statements: ratio analysis
 Enables to compare performance with the trends
 Helps in assessing financial performance from different criteria’s
 Facilitates monetary performance evaluation over the years and
over competitors
 Offers opportunity in relation to identifying reasons behind
performance deterioration
 Assists in developing suitable policies and strategies for the
upcoming time period
2.2 Assessing the use of management accounting information
as a decision making tool

Budget
 Better forecasting
 Helps in taking decision regarding raising
capital etc.
CONTD…

Variance analysis
 Provides assistance in identifying deficiencies
 Specify reasons behind loopholes
 Gives clear indication about the need of taking strategic
measures
CONTD…

Fullerton, R. R., Kennedy, F. A. and Widener, S. K.,
2014. Lean manufacturing and firm performance: The
incremental contribution of lean management
accounting practices. Journal of Operations
Management. 32(7). pp.414-428.
Kaplan, R. S. and Atkinson, A. A., 2015. Advanced
management accounting. PHI Learning.
Malmi, T., 2016. Managerialist studies in management
accounting: 1990–2014. Management Accounting
Research. 31. pp.31-44.
REFERENCES