FINANCIAL RESULTS AND REPORTING IN TOURISM: COMPARISON OF ACCOUNTING MODELS

Abstract

Accounting for financial results in the tourism sector has its own characteristics due to the long service cycle, agency relationships and the specifics of the product (package).Depending on the role of the travel company (tour operator or travel agent), two fundamentally different revenue accounting models are used: recognition of gross revenue and recognition of net revenue. A travel company recognizes gross revenue if it acts as a Principal (Controlling Person) and net revenue (commission) if it acts as an Agent (Intermediary). Travel services are diverse. Therefore, it is necessary to disclose the issue of Accounting in multi-stage tours. The accounting of travel companies uses the Accrual principle and the concept of Income for future periods. Revenue is recognized as the service is provided. Apply the principles of "Gross" and "Net" when calculating the financial result and preparing the Profit and Loss Statement.