Accounting for FF&E reserves in hotel companies

Yıl 2022, Cilt: 5 Sayı: 1, 26 - 33, 16.03.2022

Gürol Baloğlu

Öz

Hotel businesses anticipate some expenses that may arise in the future, allocate a certain provision for them, and ensure that the hotel activities continue in a healthy way. In practice, this situation, which is seen in businesses that operate hotels by using the brands of large hotel chains, is based on the contractual provisions of the two parties. This practice, which is not recognized by tax laws, generally affects management accounting and gains importance in monitoring the performance by both parties. In this study, a proposal has been developed for this accounting process, which is known as FF&E reserves in international practices. It has been understood that there has been no previous study in this direction in the academic literature.

Anahtar Kelimeler

FF&E Reserves, provision accounting, Hotel Companies

Otel işletmelerinde FF&E rezervlerinin muhasebeleştirilmesi

Öz

Otel işletmeleri gelecekte ortaya çıkması muhtemel bazı giderleri öngörerek bunlar için belirli bir karşılık ayırmakta ve otel faaliyetlerinin sağlıklı bir şekilde devam etmesini sağlamaktadırlar. Uygulamada büyük otel zincirlerinin markasını kullanarak otel işletmeciliği yapan işletmelerde görülen bu durum iki tarafın aralarında düzenlenmiş sözleşme hükümlerine dayanmaktadır. Vergi kanunları tarafından tanınmayan bu uygulama genelde yönetim muhasebesini etkilemekte ve iki tarafın performans takibinde önem kazanmaktadır. Bu çalışmada uluslararası pratiklerde FF&E rezervleri olarak geçen bu muhasebe işlemine yönelik bir öneri geliştirilmiştir. Akademik yazında bu yönde daha önce bir çalışma yapılmadığı anlaşılmıştır.

Anahtar Kelimeler

FF&E rezervleri, Karşılık Muhasebesi, Otel İşletmeleri

Kaynakça

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• Balyozyan, D., Perret, S., & Martin, C. (2017). Hotel management contracts in Europe. London, UK.
• Crandell, C. (2002). Is it time to rebalance the FF&E reserve accounts?, http://ishc.com/wp-content/uploads/FFEArticle.pdf.
• Farazad, K. (2020). Difference between hotel managements agreements and franchise operators. https://www.hospitalitynet.org/opinion/4099753.html
• Hilton Worldwide Holdings Inc. (2021). Hilton Reports Second Quarter Results. https://ir.hilton.com/~/media/Files/H/Hilton-Worldwide-IR-V3/quarterly-results/2021/q2-2021-earnings-release.pdf.
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• TFG Asset Management. (2018). The importance of a hotel’s FF&E reserve revealed. https://www.tfgassetmanagement.com/the-importance-of-a-hotel-s-ff-e-reserve-revealed/.
• The Plasencia Group. (2021). The consequences of depleted FF&E reserve balances, https://tpghotels.com/quick-topics-depleted-ffe-reserves/.
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