INTRODUCTION
The course on Accounting and IFRS for the Shipping Industry provides comprehensive training on financial reporting practices and International Financial Reporting Standards (IFRS) specifically tailored to the shipping sector. Over five days, participants will gain a deep understanding of fundamental accounting principles and regulations relevant to the industry.
The course covers various topics, including corporate governance, revenue recognition, accounting for assets, fair value measurement, consolidation of financial statements, joint arrangements, and essential reporting issues. Participants will learn how to identify shipping obligations, allocate transaction prices, and recognize revenue in compliance with IFRS 15. They will also explore accounting practices for property, plant, equipment, government grants, investment property, and financial instruments.
Additionally, the course provides insights into fair value accounting, hedge accounting, debt modification, and complex financial instruments in the shipping industry. Participants will develop skills in preparing consolidated financial statements, handling non-controlling interests, goodwill treatment, and disclosure requirements.
OBJECTIVES
By the end of this course, participants will:
Understand the accounting principles and regulations specific to the shipping industry
Gain knowledge of revenue recognition in accordance with IFRS 15
Acquire expertise in accounting for property, plant, and equipment, government grants, and investment property
Comprehend fair value accounting, hedge accounting, and treatment of complex financial instruments
Develop skills in preparing consolidated financial statements and handling non-controlling interests
Learn about impairment assessment, leasing accounting, and VAT treatment in shipping
Address key reporting and disclosure issues in the shipping industry
WHO SHOULD ATTEND ?
Accounting and IFRS for Shipping Industry course designed for:
Professionals in the shipping industry, including accountants, financial managers, auditors, and professionals involved in financial reporting and compliance.
It is suitable for individuals seeking to enhance their understanding of accounting practices and regulations specific to the shipping sector. Prior knowledge of basic accounting principles and IFRS is recommended.
COURSE OUTLINE
Day 1
Accounting Basics
Terminology
Types of Accounting
Accounting Rules
Global Institutions
IFRS / IAS
Key accounting and reporting issues
Continuity assessment:
Fair value assessment of ships:
Dry dock costs, construction, and retrofit delays:
Ship impairment assessment:
Impairment assessment of goodwill
Treatment of TAX in shipping
Types of TAX
VAT in shipping calculations
Practical case on tax report
Day 2
Revenue recognition in shipping business in accordance with IFRS 15.
Overview of International Financial Reporting Standard 15 (IFRS 15)
Defining Revenue Recognition Methods: Review the basics to determine how companies recognize revenue in the shipping business according to the international standard.
Evaluating the effects on the financial statements: Analyzing how this recognition affects the financial statements and how it can be addressed.
Practical application: Practical case studies of companies applying this standard in the shipping sector.
Identification of contract with the appropriate customers/clients
Customer selection procedures: Analyze the steps that must be taken to select appropriate customers and ensure compliance with shipping requirements.
Contract content: Determine the necessary content to avoid confusion or vague interpretation of shipping terms.
Risk Analysis: Evaluate potential risks related to the contract and develop strategies to deal with them.
dentification of shipping obligations with the contract
Defining Obligations: Examine how specific shipping obligations in the contract are identified and documented.
Compliance Verification: Ensure that shipping obligations comply with legal and industry regulations and standards.
Change Management: Establish procedures to address any changes in shipping obligations during the contract period.
Determination of the shipping transaction price
Costing Techniques: Review appropriate costing techniques to determine the price of a shipping transaction.
Competitor evaluation: Studying competitors' prices to ensure price competitiveness.
Price Negotiation: Develop negotiation skills to achieve the best possible price.
Allocation of the transaction price to the performance obligations
Determine cost elements: Analyze the various factors that should be taken into consideration when allocating the transaction price.
Clarifying the services included: Ensure that all services included in the deal and their impact on the cost are clarified.
Performance follow-up: Establishing systems to monitor the company s performance in achieving its obligations.
Recognition of shipping revenue when each performance obligation is completed.
Monitoring Procedures: Develop procedures to monitor the fulfillment of performance obligations and determine when revenue should be recognized.
Financial reporting: How to include these revenues in financial reports accurately according to specified standards.
Commitment to Transparency: Enhancing the transparency of financial operations and ensuring that information is shared correctly and in a timely manner. Day 3
Measurement of shipping assets at recognition, after recognition and derecognition
Measuring Assets at Recognition: Detailing how the value of assets is measured during revenue recognition processes.
Measuring assets after recognition: Talk about potential changes in the value of assets after revenue is recognized.
Measuring assets upon derecognition: A review of the methods used to measure assets upon derecognition of revenue.
Revaluation of shipping assets
Reasons for revaluation: Examine the reasons that may require revaluation of shipping assets.
Impact of economic changes: How the economic context affects the revaluation of assets.
Difference Accounting: Explaining how to address differences between book value and fair value.
Depreciation of shipping assets
Depreciation methods: Explain the different ways the value of assets is depreciated over time.
The impact of accounting policies: Study how accounting policies can affect depreciation rates.
Consumption monitoring: means of monitoring asset consumption and improving efficiency of use.
IFRS 13 - Fair Value Measurement
The concept of fair value: Explaining the concept of fair value and how to measure it.
Techniques used: Review of accounting techniques used to measure fair value.
Impact on Financial Reporting: Analyze how fair value measurement affects financial reporting.
IFRS 9 - Financial Instruments (Hedge Accounting)
IFRS 9
Hedge accounting principles: Explanation of accounting principles related to financial instruments and hedge accounting.
Hedging techniques: The study of techniques used to reduce financial risks.
The impact of hedging on financial performance: Analyze how hedge accounting can affect the estimation of financial performance.
Treatment of borrowing costs
Borrowing cost analysis: studying the components of borrowing costs and methods for calculating them.
Interest effect: How the interest rate affects borrowing costs and planning.
Borrowing cost management: Develop strategies to examine and improve the management of borrowing costs.
Vessel government grant accounting
Accounting Requirements: Review how government grants to support shipping activities are processed.
Estimating value: How to estimate the financial value of grants and their impact on financial reports.
Compliance with standards: Verifying that accounting is carried out in accordance with international standards.
Treatment of dry docking
Maintenance Costs: Determine costs and manage ship dry dock operations.
Impact of temporary closure: How does drydock closure affect the financial statements.
Improving Efficiency: Develop strategies to improve the efficiency of dry dock operations and achieve maximum financial benefit.
Day 4
Expected credit loss model
Understanding Credit Loss: Explaining how to estimate and account for expected loss on debt.
Influencing factors: Analysis of the factors that affect the credit loss estimate.
Impact on Financial Reporting: How credit loss estimation affects shipping companies' financial reporting.
Hedge accounting in shipping (fair value hedge and cash flow hedge)
The concept of hedging: Explain the concept of hedging and its importance in the context of shipping.
Fair value hedging: How companies hedge to protect themselves from fluctuations in the value of assets and liabilities.
Cash Flow Hedging: Review how cash flows are hedged to address financial risks.
Accounting for debt modification
Debt modification interpretation: How to identify and account for any debt modifications.
Impact of Interest Spreads: Examining how adjustments in interest rates affect financial reporting.
Compliance with standards: Ensuring that accounting conforms to recognized international standards.
Accounting for complex financial instruments.
Definition of complex financial instruments: Understand what complex financial instruments mean and how they are accounted for.
Evaluation techniques: Study of the methods used to evaluate the value of these instruments.
Impact on Financial Reporting: Analyze how the valuation of complex financial instruments impacts shipping companies' financial reporting
Day 5
Determination of control
Definition of Control: Explain the concept of control in the context of the shipping business.
Defining control: How to define and achieve control over assets and activities.
Reporting on control: How to report control-related information in financial reports.
Consolidation procedures
Legal and Financial Procedures: How to legally and financially integrate a shipping business.
Stages of merging: Detailing the steps and stages of merging and how to implement it.
Effect of consolidation on reporting: How does consolidation affect the income statement, balance sheet, and cash flow statement.
Preparation of consolidated Income Statement
Key Components: Explain the key components that should be included in a consolidated income statement.
Breaking down revenues and costs: How to effectively distribute revenues and shipping costs on the income statement.
Related Financial Reporting: Analysis of how the income statement affects other financial reports.
Preparation of consolidated SOFP
Consolidated SOFP Concept: Explain the concept and importance of preparing a consolidated balance sheet.
Consolidating Assets and Liabilities: How to consolidate assets and liabilities in the balance sheet.
Impact of Standardization on Reporting: How a standardized SOFP setting affects company reporting.
Preparation of consolidated Statement of Cash Flows
Cash Flow Analysis: Explain how to analyze and present a cash flow statement in a shipping context.
Consolidate cash flows: How to consolidate cash flows from various shipping activities.
Impact on financial reporting: How does the consolidated statement of cash flows affect financial reporting
Treatment of Non-controlling interests in shipping business
Non-controlling interests:
How to deal with interests that shipping does not control:
How does the presence of non-controlling interests affect shipping operations and related activities
Treatment of Goodwill in shipping business
Understanding the concept of goodwill: Explain the concept and importance of goodwill treatment in the context of the shipping business.
Estimating the value of goodwill: How to estimate the value of goodwill and its impact on financial reports.
Affected Financial Reporting: Analyze how the goodwill transaction affects financial reporting.
Treatment of intra-group items and unrealized profits
Understanding inter-group items: Explain how inter-group items are treated in freight calculations.
Recording unrealized profits: How to record profits that have not yet been realized in financial reports.
Final Financial Reports: Analyze how line items and unrealized gains affect final reports.
IN-HOUSE TRAINING
LMA Training is capable of conducting this training programme exclusively for your delegates. Please e-mail us on admin@lmitac.com for further information and/or to receive a comprehensive proposal.
DOCUMENTATION
High-Quality material has been prepared by the LMAteam for distribution to delegates. In addition, a special note pad to facilitate note-taking will be provided.
CERTIFICATES
Accredited Certificate of completion will be issued to those who attend & successfully complete the programme.
SCHEDULE
Our Course timings commence at 09:00AM12:45PM and 01:00PM - 05:00PM.
REGISTRATION & PAYMENT
Please complete the registration form on the course page & return it to us indicating your preferred mode of payment. For Further Information, please get in touch with us.
CANCELLATION AND REFUND POLICY
Delegates have 14 days from the date of booking to cancel and receive a full refund or transfer to another date free of charge. If less than 14 days notice is given then we will be unable to refund or cancel the booking unless on medical grounds. For more details about the Cancellation and Refund policy, please visit www.lmitac.com/terms-and-conditions/
TRAVEL AND TRANSPORT
We are committed to picking up and dropping off the participants from the airport to the hotel and back.
CONTACT INFO
LONDON
London - Oxford Street 25 N Row, London W1K 6DJ
+44 (0) 20 36 916 970
Info@lmitac.com
DUBAI
Business Bay, ParkLane Tower, Offices 718 - 719
+971 43880094
Info@lmitac.com