Course description
The Accounting for Maritime Carriers training course provides comprehensive knowledge and practical guidance on accounting principles and practices specific to the maritime industry. Over five days, participants will delve into various accounting topics, including revenue recognition, property plant and equipment, investment property, fair value accounting, lease accounting, consolidation of financial statements, joint arrangements, and critical reporting issues.
Through interactive sessions, participants will learn to identify contracts, shipping obligations and determine transaction prices in accordance with IFRS 15.
They will also explore accounting for property plant and equipment, government grants, and investment property in compliance with IAS standards.
The course will cover fair value accounting, lease accounting under IFRS 16, and the treatment of VAT and sales tax in the shipping industry.
Upcoming start dates
Outcome / Qualification etc.
Upon completion of this course, participants will be able to:
- Understand the accounting principles and practices specific to maritime carriers.
- Identify and apply International Financial Reporting Standards (IFRS) applicable to the maritime industry.
- Gain knowledge and skills related to accounting for contracts, property plant and equipment, government grants, investment property, fair value accounting, lease accounting, consolidation of financial statements, and critical reporting issues.
- Learn how to identify shipping obligations, determine transaction prices, allocate revenue to performance obligations, and recognize shipping revenue.
- Explore cost models, revaluation of shipping assets, depreciation, fair value measurement, lease accounting, joint arrangements, impairment assessments, VAT treatment, and reporting requirements in the context of the maritime industry.
Training Course Content
Accounting for contracts in accordance with IFRS 15
- Identification of contract with the appropriate customers/clients
- Identification of shipping obligations with the contract
- Determination of the shipping transaction price
- Allocation of the transaction price to the performance obligations
- Recognition of shipping revenue when each performance obligation is completed
Accounting for Property Plant and Equipment (IAS 16) and Government Grants (IAS 20) and Investment Property (IAS 40)
- Cost or revaluation model
- Component approach
- Major maintenance and overhaul costs (including drydocking and special survey costs)
- Impairment of long-lived and indefinite-lived assets
- Measurement of shipping assets at recognition, after recognition and derecognition
- Revaluation of shipping assets
- Depreciation of shipping assets
- IFRS 13 - Fair Value Measurement
- IFRS 9 - Financial Instruments (Hedge Accounting)
- Treatment of borrowing costs
- Vessel government grant accounting
- Treatment of dry docking
- Fair Value Accounting in Shipping
- Lease accounting in shipping
- Sale-leaseback transactions
- Valuation of Financial Instruments
- Expected credit loss model
- Hedge accounting in shipping (fair value hedge and cash flow hedge)
- Accounting for debt modification
- Accounting for complex financial instruments.
Understanding and applying IFRS 10 in the consolidation of financial statements
- Preparation of consolidated Income Statement
- Preparation of consolidated SOFP
- Preparation of consolidated Statement of Cash Flows
- Treatment of Non-controlling interests in shipping business
- Treatment of Goodwill in shipping business
- Treatment of intra-group items and unrealised profits
Joint Arrangements in accordance with IFRS 11
- Treatment of joint arrangements, joint control, joint operations and joint ventures
- Preparation of Joint Venture Accounts in accordance with IAS 28
- Joint Venture Accounts for interests in Accordance with IFRS 9
- Disclosure on interests in other entities in accordance with IFRS 12.
Key reporting accounting and reporting issues
- Going concern assessment
- Fair valuation assessment of vessels
- Drydocking, construction, retrofit delays.
- Impairment assessment of vessels
- Impairment assessment of goodwill
- Accounting for leasing in shipping in accordance with IFRS 16
Treatment of VAT and sales tax in shipping
- Input VAT
- Output VAT
- Quarterly reporting, Annual Accounting and Cash Accounting
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London Maritime Academy
London Maritime Academy provides a wide range of maritime training courses tailored to the global industry. Located in London and known for international standards, we offer diverse Classroom and Online courses taught by highly experienced experts in the maritime sector....