Heavily influenced by international trade environments, the shipping industry is capital-intensive; comprising a vast network of closely interconnected stakeholders ranging from leasing banks, shipowners, ship operators, major commodities traders to ship builders, equipment providers. Whilst capital expenditure, operating cost, earning and revenue are immensely sensitive to numerous factors such as economic recessions, Covid-19 disruptions on demands & logistics, trade risks, charter income, fuel prices; the financial & accounting professionals require informed judgements to answer a range of complex questions
Hands-on and practical, this masterclass dwells in the most relevant challenges shipping players face in the current climate of uncertainty – including revenue recognitions, assessment of impairment indicators, liquidity & concentration risks, consolidation & joint arrangement, access to equity & debts, among many more; and most importantly, the impacts of Covid-19 on all aforementioned areas.
Key Learning Outcomes & Case Studies Include:
- Covid-19 particular considerations on accounting & financial reporting
- In-depth Analyses of the 5-step model of recognising revenue for Shipping & Maritime sectors
- Accounting & reporting issues relating to ship management, shipbuilding and retrofits
- Issues relating to asset acquisition, divestitures and merger/acquisitions
- Accounting for Leasing and Sale-Leaseback Transactions
- Hedge accounting in shipping industry
- Deferred taxes and recognition of taxes in shipping industry
- Assessment of costs that can be capitalised
- Shipping Asset Depreciation and Residual Value
- Impairment of Non-Financial Assets
- Other amendments Relevant to the Shipping Industry – Effects, Exemptions and more
- Group Accounts Consolidation and Joint Arrangements
Case Studies and Discussions Include:
- Key accounting & reporting issues during Covid-19 (financial covenant, impairment, going concern assessment etc.)
- IFRS 15 Revenue from contracts with customers and related accounting treatments
- Lease standard (IFRS 16) and Financial instruments (IFRS 9) and impacts on shipping industry