Management Accounting Practices and Financial Analysis: Dalata

This report provides a comprehensive overview of management accounting information and practices within the Dalata Hotel Group. It begins by outlining different types of management accounting information, including financial statements such as the balance sheet, income statement, and cash flow statement, with examples from Dalata's 2017 financials. The report then discusses the role of internal managers in presenting financial information through financial ratios, variance analysis, budget forecasts, and cost accounting. It highlights the importance of accounting management in the travel and tourism industry, particularly for balancing the profitability of a large organization like Dalata Hotel Group. The report further explores decision-making tools used by the company, including strategic tools like budgets and balance scorecards, tactical budgets, and operational forecasting techniques. It emphasizes the use of budget forecasting for financial decision-making and resource allocation within Dalata Hotel Group. Finally, the report concludes that effective management accounting is essential for managing funds and investments, providing valuable insights for the organization's future reference and strategic planning.

Management
Accounting
Information

Table of content
• Part 2.1
• Financial statement
• Example of Balance
• Example of income statement
• Cash Flow
• Budget expenses
• MIS
• Dalata Hotel Group
• Part 2.2
• Forecasting
• Setting Price
• Conclusion
• References
• Thank you

Part 2.1
• Different type of management Accounting
Information Flow chart
Accounting
Financial Management

Financial Statement
• Financial statement includes various
records which are as follows:
• Balance sheet
• Income statement
• Statement Cash flow

Example of Balance- Dalata
2017

Example of Income Statement

Cash flow

Budget
Budget for the year 2017
€’000
Revenue 420000
Cost of Sales 180000
Gross Profit 240000
Administrative Expenses 12717
Other Income 700
Operating profit 227983
Finance Cost 11000
Profit Before Tax 216983
Tax Expenses 45566
Profit after tax 171417

Management Accounting System
Management accounting is done by the decision maker
and some of the internal managers. The internal
managers present the financial information in the
following points:
• Financial ratio
• Variance analysis
• Budget forecast
• Cost accounting

Dalata Hotel Group
• In travel and tourism industry, the accounting management is
an essential thing to balance the profitability of entire
business.
• Dalata Hotel Group plc has almost 33 three star and four star
hotels at different location which has around 7700 rooms.
• Dalata Hotel Group plc is the well known organization in the
travel and tourism industry.
• The accounting management is done for the financial
management in Dalata Hotel Group plc

Part 2.2
• Decision making tools
• Strategic- Budget and Balance score card.
• Tactical- Budgets
• Operational

Forecasting
• Budget forecast is the technique to take some
financial decisions in the Dalata Hotel Group plc.
• This organization is using the budget forecasting to
allocate the budget for the future of the organization.