What was the current period charge (release) for expected credit losses for Crowne Plaza in 2023?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
s standard introduces expedients relating to common control lease transactions, effective for financial years beginning after December 15, 2023. There has been no effect on the consolidated balance sheets, consolidated statements of net income or financial statement disclosures in future years.
Future Adoption of Accounting Standards
In December 2023, the FASB issued ASU No. 2023-09, Income taxes (Topic 740): Improvement to Income Tax disclosures. This standard enhances the transparency and decision usefulness of income tax disclosures, effective for financial years beginning after Dece
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the current period charge (release) for expected credit losses in 2023 was a credit of $1,988. This figure represents an adjustment to the allowance for credit losses, which is an estimate of the amount of accounts receivable that may not be collected.
A 'charge' would indicate an increase to the allowance, reflecting a higher expectation of uncollectible accounts. Conversely, a 'release,' as is the case here with the negative $1,988, indicates a decrease in the allowance, suggesting that Crowne Plaza expected to collect more of its outstanding receivables during that period than previously anticipated. This adjustment can be influenced by various factors, including changes in economic conditions, the creditworthiness of customers, and the effectiveness of collection efforts.
For a prospective franchisee, understanding these figures is important as it provides insight into Crowne Plaza's financial management and its expectations regarding revenue collection. While this specific figure relates to the franchisor's overall financial statements, it demonstrates the brand's approach to managing financial risk and forecasting potential losses. Franchisees may want to inquire about how Crowne Plaza supports franchisees in managing their own accounts receivable and minimizing credit losses at the individual hotel level.