Shipping accounting
Plain-English guides to the accounting issues shipping companies face, each with a worked example from the industry.
Shipping accounting guides
- Shipping accounting: the key IFRS issues4 minute readShipping accounting explained: vessel components and dry-docking, voyage and time charter revenue, demurrage, impairment and the US dollar functional currency.
- Vessel components and depreciation4 minute readVessel components under IAS 16: hull and machinery, dry-docking, scrubbers and ballast water systems, scrap-based residual values and useful lives of ships.
- Dry-docking costs3 minute readDry-docking costs under IAS 16: which costs are capitalised, depreciation to the next dry-dock, early dry-docks, why no provision is allowed, and US GAAP.
- Voyage revenue recognition4 minute readVoyage revenue under IFRS 15: one performance obligation over time, load-to-discharge, ballast costs to fulfil, commissions and contracts of affreightment.
- Time charters: lease or service4 minute readTime charters under IFRS 16 and IFRS 15: why they usually contain a lease, splitting hire between lease and crewing service, bareboat charters and charterers.
- Demurrage and despatch4 minute readDemurrage and despatch under IFRS 15: demurrage as variable consideration in a voyage charter, estimating claims, despatch, disputes and the charterer's side.
- Vessel impairment4 minute readVessel impairment under IAS 36: each vessel as a cash-generating unit, broker valuations, value in use with contracted and estimated charter rates, reversals.
- Bunker fuel4 minute readBunker fuel accounting under IFRS: who owns the fuel under voyage and time charters, delivery and redelivery, IAS 2 measurement, surcharges and hedging.
- Shipping pools4 minute readShipping pools under IFRS: how pool members recognise distributions, pool points, whether the pool is a customer or a lessee, and the pool manager's accounting.
- Vessel sale and leaseback4 minute readVessel sale and leaseback under IFRS 16: why deals with repurchase obligations are financing, the financial liability, purchase options and US GAAP.
- Functional currency in shipping4 minute readFunctional currency in shipping under IAS 21: why most owners use the US dollar wherever they are based, local currency bonds and presentation currency.
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About these guides
Each guide starts from an accounting issue shipping companies actually face and works through it with numbers from the industry. 11 of 11 planned guides are published; more are added with every batch.