Reflective Journal
HOS301A Hotel Management Simulation
Finance
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Finance
Introduce the subject and the class lesson for today.
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Overview
FINANCE
HOtS program
FINANCIAL REPORTS
The main financial statements are designed to provide a picture of the overall financial position and performance of the hotel.
Source: Atrill, P., McLaney, E., & Harvey, D., Accounting: An Introduction, 6th Edition, Pearson Education Australia
THRE REPORTS
Statement of Cash Flow
Statement of Income
Statement of financial position - Balance sheet
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CASH FLOW
The statement that shows the sources and use of cash for a period.
Source: Atrill, P., McLaney, E., & Harvey, D., Accounting: An Introduction, 6th Edition, Pearson Education Australia
Provides data regarding all cash inflows from it’s operations and external investments
First section is cash flow from operations
Second section is cash flow from investments
The third section is cash flow from financing
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HOTS
Select the period you wish to review
TEAM DECISION
CF from operating activities
CF from investment activities
CF from financing activities
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Income – increase economic benefit
Revenues – increase in owners claim as a result of operations
Other gains – gains from not operating activities
Expense– A measure of the outflow of assets (or increased liabilities) incurred as a result of generating revenues
A statement which measures and reports how much profit has been generated in a period.
Source: Atrill, P., McLaney, E., & Harvey, D., Accounting: An Introduction, 6th Edition, Pearson Education Australia
STATEMENT OF INCOME
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HOTS
TEAM DECISION
Select the period you wish to review
Revenue
Expenses
Income
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HOTS
HOTS YEAR 1:
30 minutes
2 DECISION CYCLES
July August
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BALANCE SHEET
Shows how much a company owns and owes
Shows how much shareholders have invested
Snapshot of companies finances at a moment in time
Use balance sheet in conjunction with other financial statements
A statement that shows the assets of a business and the claims on the business. Assets must always equal claims. Claims will relate to external labilities and owners claim (know as equity)
Source: Atrill, P., McLaney, E., & Harvey, D., Accounting: An Introduction, 6th Edition, Pearson Education Australia
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ASSETS
A probable future economic benefit
The business has exclusive right to control the benefit
The benefit must arise from some past transaction or event
The asset must be capable of reliable measurement in monetary terms
A resource held by a business which has certain characteristics.
Source: Atrill, P., McLaney, E., & Harvey, D., Accounting: An Introduction, 6th Edition, Pearson Education Australia
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Past transaction or events
Accounts Payable
Represent legal claim by external parties
Provisions – contingent liability
Claims of individuals and organisations, apart from owner(s), that have arisen from past transactions or events, such as supplying goods or lending money to the business .
Source: Atrill, P., McLaney, E., & Harvey, D., Accounting: An Introduction, 6th Edition, Pearson Education Australia
LIABILITIES
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Current Asset – To be converted or consumed within 12 months
Non-Current Asset – Held with the intention of being used generate wealth > 12 months
Current Liabilities – Amounts due for repayment to outside parties within 12 months
Non-Current Liabilities - Amounts due to other parties not liable within the next 12 months
Classification
Current and Non Current
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Equity = residual interest in the asset of the entity after deducting all liabilities
Shareholders equity
Retained Earnings
The claim of the owner (s) on the asset of the business.
Source: Atrill, P., McLaney, E., & Harvey, D., Accounting: An Introduction, 6th Edition, Pearson Education Australia
OWNERS
EQUITY
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HOTS
TEAM DECISION
Select the period you wish to review
Assets
Liabilities
Owners Equity
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HOTS
HOTS YEAR 1:
30 minutes
2 DECISION CYCLES
September October
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Section one – displays income from three generating departments (accommodation, f&b, other)
Section two – displays expenses from three departments (accommodation, f&b, other)
Section three – displays undistributed operating expenses
Section four – displays fixed charges
SUMMARY
OPERATING
SCHEDULE
A report that summaries all the department operating schedules.
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HOTS
TEAM DECISION
Select the period you wish to review
Revenue
Department Expenses
Undistributed Expenses
Fixed Charges
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Accommodation
Food and Beverage
Administration and General (A&G)
Other
A detailed expenses and revenue per department. The report does not include fixed charges, interest expense depreciation or income tax.
DEPARTMENT
OPERATING
SCHEDULE
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HOTS
TEAM DECISION
Select the period you wish to review
The department you are viewing i.e. Rooms
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HOTS
HOTS YEAR 1:
30 minutes
2 DECISION CYCLES
November December
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Balanced Scorecard – Year One Review
Review the first year performance – share the balanced score results with rankings.
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Assessment
DISCUSSION
Introduce assessment three (3), due date and requirements.
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Assessment
DISCUSSION
Discuss assessment three (3).
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Assessment
DISCUSSION
Discuss assessment three (3).
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Next Week
Teams to conduct detailed review of year one (1)performance
Teams to work on the plans/decisions for year two (2)
Teams need to complete a forecast for year two
Complete pre class Activity
Participate – post your thoughts on the discussion forum
Remind students that this subject requires out of class work.
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