¶ … financial statements of Marriott Hotels and discusses measurement bases they employ. The essay also surveys the literature for current thinking on fair value measurement.
According to the International Financial Reporting Standards (IFRS), measurement "involves assigning monetary amounts at which the elements of financial statements are to be recognized and reported" (Deloitte, 2011). Accounting measurement consists of quantifying financial information in dollars or units. These measurements are then used to report information to internal and external users through the use of financial statements that accountants prepare. Financial accounting measurements may be recorded at historical cost or adjusted to reflect current market values (Conjecture Corporation, 2011).
Generally Accepted Accounting Principles (GAAP) require companies to record balance sheet information using a fair value accounting measurement. Companies must therefore use this measurement technique to value assets and equity investment at the current market rate which thee items would bring if they sold in an open market. Such measurement methods may require disclosure on the company's financial statements by way of footnotes or disclosure statements. Investors use these explanations to better understand how the company values its balance sheet items and to determine if the company has accurately applied to GAAP. If accounting measurements are incorrectly applied, misstated financial statements may result, with the result that banks or investors may be unwilling to invest in these companies due to accounting irregularities (Conjecture Corporation, 2011).
The International Financial Reporting Standard (IFRS) acknowledges a number of measurement bases, including historical cost, fair value, and present value. According to the Framework of International Accounting Standards Board (IASB), historical cost is the most commonly used measurement basis. Historical cost requires financial statement items to be based on original cost and is primarily used for cash and held-to-maturity liabilities.
Fair value of an asset is the amount at which the asset could be bought or sold in a current transaction between willing parties not part of a liquidation. Fair value of a liability is the amount at which that liability could be incurred or settled in a current transaction between willing parties.
Present value is defined as the current worth of future cash flows, which are discounted at the discount rate; the higher the discount...
High-road competition focuses on service quality (Working for America Institute 2004), which means developing property in prime locations and the regular upkeep and upgrade of property. Hotels using high-road competition charge high room rates but provide top-class amenities, satisfying customer service and on-site attractions, such as restaurants, lounges, conference sites, gift shops and concierge service to attract customers and incline them to spend. Upper segments are likelier to engage in
Strategic Research Testimonial and examine the vision and mission statement. Is this business following the specified vision and mission? Our Vision: To be the favored supplier of vacation ownership and individualized vacation experiences. Our Mission: To provide memorable experiences that make vacation dreams become a reality. Marriott Vacations Worldwide Company is the world's leading pure-play public timeshare business. Because getting in the timeshare sector in 1984, the business made its position as a leader and inventor
Organizational Culture and Sustained Competitive Advantage Organizational culture is a defining feature of every organization. The unique culture that every organization displays has an affect on its ability to remain profitable. Culture can have either positive or negative affect on the ability of the organization to remain competitive. Much academic research up to this point has focused on theory and defining what is meant by culture and sustainable competitive advantage. This
"Muslims from Algeria, Egypt, Saudi Arabia, Southeast Asia, and beyond fought side by side, forging relationships and creating a cadre of veterans who shared a powerful life experience, a more global view,..." Jenkins 3) This experience was bolstered by the victory over the Soviet Union, which consequently strengthened the organization. However, the Afghan veterans, on returning to their various homes, were viewed with suspicion by the different governments and regimes and
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