A.

Financial Statement Elements of Hotel Department

1. Balance Sheet
The balance sheet is one of the important hotel financial statements. In the balance sheet
it is reported that the position of hotel property such as cash, receivables, inventories,
other current assets, building and building equipment, fixed assets etc., and land. In
addition to hotel wealth, the balance sheet is a systematic report on assets, liabilities, and
hotel capital at any given moment. The balance sheet is presented separately from the
current assets and non-current assets and lancer liabilities and non-current liabilities.
Current assets are presented in the order of liquidity whereas liabilities are presented on
the basis of their maturity.
2. Income Statement
In the income statement, the details of expenses are presented by the classification of
expenses based on the burden function within the company. While in the notes to the
financial statements, expenses are presented on the basis of their nature. Each component
in the financial statements should be clearly identified. In addition, the financial
information presented and repeated on each page of the financial statements, such as:
 Name of the reporting company or other identity
 Coverage of financial statements, whether covering only one entity or consolidation
 The date or period covered by the financial statements.
 Reporting currency
 The unit of numbers used in the financial statements
3. Statement of cash flows
The statement of cash flows is a report that reveals the sources of the hotel's cash. This
report is an integral part of the income statement and the balance sheet. In the cash flow
statement, cash flows (revenues and expenditures) of the hotel from operating activities,
investment activities, and financing activities. Cash flows from operating activities are
sourced from day-to-day hotel operations such as cash on sale of room service, food,
beverages and other services offered by the hotel to guests. Quotation of receivables is a
source of cash inflows from operational activities. Cash disbursements for operational
activities include paying employee salaries, repaying trade payables to partners for meat,
fish and other operational purposes. Cash flows from investment activities when the hotel
 receives cash dividends from investments in other companies, while cash for investment
activities when the hotel buys short-term securities. Cash flows from financing activities
are sourced from third parties, such as long-term debt from banks. Incoming cash sources
from long-term debt, while cash for installments and interest on long-term debt.
4. Notes to the Financial Statements
Notes to financial statements (notes on financial statements) are an integral part of the
hotel's financial statements. In the notes to the financial statements of information
disclosed, among others, accounting policies applied such as determination of value,
inventory, depreciation method applied, capitalization policy. In addition to the
accounting policies applied, the notes to the financial statements reveal the effect of
inflation on the financial statements.
5. Changes in estimates, alterations of policies or methods of accounting and fundamental
errors should be treated as follows:
a. Changes in accounting estimates
An estimate is revised if there are changes to the conditions underlying the estimate
or additional new information, further experience or developments. The impact of
these changes should be treated prospectively.
b. Changes in accounting policies
Conducted only if the application of a different accounting policy is required by
applicable law or accounting standards or if it is expected that the change will result
in a more appropriate presentation of events or transactions in the company's financial
statements.
c. Fundamental mistake
Fundamental errors may arise from miscalculations of mathematics, errors in the
application of accounting policies, misinterpretation of facts or fraud and negligence.
The impact of the underlying accounting and error policies should be treated
retrospectively by re-presenting for the period previously presented and reporting its
impact on the period before the presentation period as an adjustment to the beginning
balance of the period. Exceptions are made where considered impractical or
specifically regulated in the terms of the transition period for the adoption of new
financial accounting standards.
 d. On each balance sheet page, income statement, cash flow statement and statement of
changes in equity, must be stated that "Notes to financial statements are an integral
part of financial records."
e. Notes to financial statements should disclose separately the amount of each type of
transaction and balance with directors, employees, commissioners, major
shareholders, key employees and related parties.
f. Separate explanation is required for accounts receivable, payable, sales, income or
expenses if the number of transactions for each category is Rp1,000,000,000. This
amount should be presented separately and the names of the parties involved should
be disclosed.
The privileged person is:
 Companies which, through one or more intermediaries, control, or are controlled
by, or are located in joint control with the reporting enterprise including holding
companies, subsidiaries, and fellow subsidiaries.
 Associated companies
 Individuals owning, directly or indirectly, an interest in the voting power of a
significantly influential reporting enterprise, and close members of the family of
such individuals.
 Key personnel are persons who have the authority and responsibility to plan,
direct, and control the activities of the reporting enterprise including
commissioners, directors and managers of the company and close members of the
individual's family.
 Companies in which a substantial interest in the voting power is owned, directly
or indirectly. This includes companies owned by the board of commissioners,
directors, or major shareholders of the reporting enterprise and companies having
the same key management members as the reporting enterprise.

2. MAKE MANAGEMENT ACCOUNTING REPORTS CONSISTING FROM STATISTIC

AND DEPARTMENTAL STATEMENT
The hotel's financial reporting system is based on a behavioral approach, which is to pay
attention to the purpose and motivation of using the report. Thus the reporting system is
divided into:

1. Financial accounting report

2. Management accounting reports

However, in practice there is a very close correlation between management accounting and
financial accounting, especially concerning the financial accounting system, especially those
concerning the forecast chart as well as the financial accounting procedures.

Management accounting reports may also be in the form of financial analysis of financial
accounting reports, especially those related to the balance sheet and income statement.
Financial analysis is one method that can show the strengths and weaknesses of companies
from various aspects of finance. The results of this analysis is required by various parties
both external and internal to evaluate the condition of the company and to be able to predict
the ability of the company in the future.

1. Financial Accounting Report

Financial accounting reports are prepared under Indonesian GAAP, so in general there is
little difference with the financial accounting statements prepared by other industries. The
main characteristic that differentiates from other industries only concerns the many types of
income (including trading companies, service companies, manufacturing companies, and
brokerage services). Similarly, the calculation of the cost of goods that are tailored to the
type of sale. Financial statement analysis can be done with various methods, among others:

a. Ratio analysis

b. Horizontal analysis

c. Vertical analysis

d. Analysis of sources and use of funds

e. Measurement of health and financial performance of various perceptions