Abstract

http://ssrn.com/abstract=1702589
 
 

References (52)



 


 



Accounting for the Furniture, Fittings & Equipment Reserve in Hotels


Michael J. Turner


University of Queensland - Business School

Chris Guilding


Griffith University - School of Accounting and Finance - Gold Coast Campus


Accounting & Finance, Vol. 50, No. 4, pp. 967-992, December 2010

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.

Number of Pages in PDF File: 26

Accepted Paper Series


Date posted: November 8, 2010  

Suggested Citation

Turner, Michael J. and Guilding, Chris, Accounting for the Furniture, Fittings & Equipment Reserve in Hotels. Accounting & Finance, Vol. 50, No. 4, pp. 967-992, December 2010. Available at SSRN: http://ssrn.com/abstract=1702589 or http://dx.doi.org/10.1111/j.1467-629X.2010.00347.x

Contact Information

Michael J. Turner
University of Queensland - Business School ( email )
St Lucia
Australia
Chris Guilding
Griffith University - School of Accounting and Finance - Gold Coast Campus ( email )
PMB 50 Gold Coast Mail Centre
9726 Queensland
Australia
+61 (07) 5552 8790 (Phone)
+61 (07) 5552 8068 (Fax)
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References:  52

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