1. Items acquired with a useful life of greater than one year and with a minimum threshold amount, as specified by the country legislation, should be capitalized in the balance sheet as a Fixed Asset.
2. Depreciation should be calculated using the straight-line method, unless the owning company requires the use of a different method.
3. Proper files must be maintained with the details of all acquisitions of assets.
4. The Chief Accountant will regularly review the insurance coverage of assets in order to ensure that the hotel is adequately insured.