Accounting for tangible fixed assets in the Maltese hotel industry : an evaluation

Abstract

This dissertation investigates some areas in accounting for tangible fixed assets in the Maltese hotel industry where deviations from general principles exist. The aim is to identify how, or whether or not, local hotel companies are applying the requirements of the International Accounting Standards on accounting for tangible fixed assets when preparing their accounts. For the purposes of this study, a questionnaire was sent to 76% of all classified hotels listed on the Hotel List 1999 published by the National Tourism Organisation of Malta. The responses obtained are examined and tentative conclusions are drawn. The result of the survey undertaken constitutes good evidence that, not only the local hotel companies do not comply with IASs, but the accountants in charge of preparing their accounts lack the knowledge necessary of the basic accounting principles. Suggestions to improve such unfortunate circumstances are made. However, these are not intended to be a final word on the matter.