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Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition - PRINT

Uniform System of Accounts for the Lodging Industry Eleventh Revised Edition - PRINT

Eleventh

00659TXT11ENGE

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The Uniform System of Accounts for the Lodging Industry (USALI) is periodically revised to reflect changes in industry practice and to address issues that arise as the industry develops.

Examples of contemporary industry issues and practices considered and addressed in this Eleventh Revised Edition include, but are not limited to, the following: technology updates, sustainability, globalization, new terminology, cluster services, distribution channels, and enhanced ratio analysis.

Every section of the Uniform System of Accounts for the Lodging Industry has been updated to reflect the latest practices for recording financial information.  There are new categories, changes in where specific items are recorded, and additional guidance on issues such as recording of surcharges, service charges, and gratuities; the handling of revenues and expenses associated with mixed-ownership lodging facilities; the handling of gift certificate revenue; and more.  

The "Highlights" tab provides additional information on material changes in the Eleventh Revised Edition.

Please note: 

The print version of the book will be packaged with a keycode that enables readers to register and receive access to download Excel templates of all financial statements and supporting schedules, as well as a searchable Revenue and Expense Guide. 

©2014, Hardbound 
ISBN 978-0-86612-447-8

Select Changes from the Tenth Revised Edition

The following paragraphs and bullet statements highlight the material changes from the Tenth Revised Edition that are incorporated in the Eleventh Revised Edition. Be advised that additional changes are presented throughout the book.

Summary Operating Statement

 The following statements highlight the material changes made to the presentation of the Summary Operating Statement.

  • "Rentals and Other Income" has been changed to "Miscellaneous Income."
  • "Revenue" has been changed to "Operating Revenue" and "Total Revenue" has been changed to "Total Operating Revenue."
  • "Information and Telecommunications Systems" has been added as a fifth Undistributed Operating Department (see Part I, Schedule 6 ).
  • "Fixed Charges" has been changed to "Non-Operating Income and Expenses" (see Part I, Schedule 11 ).
  • "Net Operating Income" has been changed to "EBITDA" (Earnings Before Interest, Taxes, Depreciation and Amortization).
  • Two Summary Operating Statement formats have been developed:
    • For operators, a Replacement Reserve is deducted from EBITDA, and the bottom-line is "EBITDA less Replacement Reserve."
    • For owners, Interest, Depreciation, Amortization, and Income Taxes are deducted from EBITDA, and the bottom-line is "Net Income."

Operating Schedules

The following statements highlight the material  changes contained in the operating schedules.

 Multiple Departments

  • In all departments, readers are advised to refer to the Appendix the end of the book that provides enhanced guidance on the reporting of revenues and expenses on a gross versus net basis.
  • Additional guidance is provided in each revenue-producing department regarding the handling of surcharges, service charges, and gratuities.
  • Categories have been added to each department schedule to provide additional information regarding Labor Costs and Related Expenses:
    • The aggregated salaries and wages of management and non-management personnel are presented on the department schedule.
    • Service Charge Distribution is presented as a distinct cost category within Salaries, Wages, Service Charges, Contracted Labor and Bonuses. It has been moved from Payroll-Related Expenses-Supplemental Pay.
    • Contracted, leased, and outsourced labor costs are presented independently.
  • New expense categories have been added to account for cluster services and department-specific reservations expenses.
  • Administrative telecommunications expenses are no longer recorded within each department. All administrative telecommunications expenses are now recorded in the new  Information and Telecommunications Systems-Schedule 6 .

Rooms Department

 The segmentation that is used to record rooms revenue reflects efforts to provide greater detail and definitions and to align with industry practices.

  • Resort fees are now recorded in Miscellaneous Income-Schedule 4 . They are not included in the calculation of average daily rate.
  • Enhanced guidance is provided regarding the handling of revenues and expenses associated with mixed-ownership lodging facilities.
  • Enhanced guidance is provided regarding the allocation of package revenues and the handling of package breakage, which has moved to Miscellaneous Income--Schedule 4 .

 Food and Beverage Department

  • Food and Beverage-Schedule 2  presents the revenues from both food and beverage venues. Separate food and beverage department schedules are not mandatory.
  • Enhanced guidance is provided regarding the handling of gift certificate revenue.
  • The term "cover" has been replaced with the term "customer" to reflect the number of people served.

Other Operated Departments

  • Telecommunications is no longer an Other Operated Department. Guest room-generated revenues and cost of sales are now accounted for in Guest Communications on Minor Operated Departments-Schedule 3-xx . Function room-generated revenues and cost of sales are accounted for in Audiovisual on Food and Beverage-Schedule 2 . All telecommunications-related labor expenses, administrative telecommunications costs, and the costs associated with complimentary phone and Internet services are recorded on the new Information and Telecommunications Systems-Schedule 6 .

 Miscellaneous Income

  •  All resort fees and package breakage are recorded in Miscellaneous Income-Schedule 4 .
  • Additional guidance is provided regarding the handling of commissions, business interruption insurance, foreign currency exchange, unused or forfeited gift certificates, and interest income.

 Undistributed Departments

  •  The information and telecommunications systems department has been created to consolidate all system-related technology expenses.
  • Additional guidance is provided regarding the handling of non-guest-related foreign currency exchange income and expenses.
  • The segregation of sales and marketing expenses was eliminated.
  • Revenue management and catering sales functions have been clarified as sales and marketing expenses.
  • Utility Taxes was eliminated as a separate expense category on Utilities-Schedule 9 .
  • Contract Services was added as an expense category on Utilities-Schedule 9  to incorporate the cost of energy audits.

 Non-Operating Income and Expenses

  • The net revenue generated by ownership that is not managed or maintained by the hotel is recorded as Non-Operating Income.
  • An Owner Expense category has been added to account for such items as asset management fees, receiver fees, and owner directed market studies and audits.
  • Additional guidance is provided regarding the handling of equipment rental, unique municipal charges, and various employee housing expenses.

Financial Statements

The following statements highlight the material changes contained in the financial statements.

  • Revenue and expense categories have been added to the Income Statement to reflect changes made to the Summary Operating Statement.
  • A Statement of Comprehensive Income has been added to supplement the Income Statement. An illustrative statement is provided.
  • A reference to International Financial Reporting Standards (IFRS) was added.
  • Gift certificates and cards have been removed from Other Current Liabilities and made a separate line item.
  • Additional guidance is provided regarding the handling of inventories, operating equipment, and pre-opening expenses.

Financial Ratios and Operating Metrics  

The following statements highlight the material changes contained in Part III--Financial Ratios and Operating Metrics .

  • In recognition of the importance of operational and financial analysis, the name of this section has been changed from Ratios and Statistics to Financial Ratios and Operating Metrics .
  • Ratios are presented for both operating departments and undistributed departments.
  • For each department, a recommended schedule of key ratios is provided.
  • A recommended labor cost schedule is provided that presents detailed labor cost data for each department.
  • Additional utility and waste consumption ratios are provided, as is a discussion regarding the growing trend to measure sustainability and environmental impact.

Revenue and Expense Guide

The following statements highlight the material changes contained in the Revenue and Expense Guide.

  • Guidance is provided regarding the proper recording of both revenues and expenses.
  • The Revenue and Expense Guide available in an electronic format that is both sortable and searchable.

 

 

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