Moore Stephens Highlights New Accounting Rules

Wednesday, April 20, 2005
Leading accountants Moore Stephens say that from 2005 companies have to produce their accounts in a new, internationally agreed way. Companies with a listing in any European Union state have to produce their financial statements in accordance with International Financial Reporting Standards (IFRS).

EU member states also have the option of requiring IFRS for unlisted companies. And many other countries, too, have decided to move to IFRS.

Writing in Moore Stephens' shipping newsletter The Bottom Line, partner David Chopping says, "The shipping industry is in a slightly unusual position, as many companies have been using international standards for years. But, unfortunately, that does not mean that shipping companies can sit back and ignore the changes.

"At the same time as the move to IFRS, there has been a series of changes to those standards that may affect shipping. These include a new requirement to classify, separately, assets held for sale. This means that accounts will not just reflect disposal of vessels in the year, but also any plans - at least those at an advanced stage - for such disposals. Vessels held for sale will not be depreciated, and may need to be restated immediately prior to being treated as held for sale.

"Another change that is likely to have an impact is the requirement to reconsider residual values annually, using as the basis the value that the company would receive were it to dispose of an asset currently in the condition expected at the end of its useful life. This means that the residual value needs to be changed each year taking account of the prevailing scrap value. It could have a substantial effect on ageing vessels where the remaining depreciation period is shorter."

Moore Stephens also notes that it is not just ships that have to be counted differently, but also what people are paid. Key management remuneration must now be detailed.

Also in Bottom Line, Moore Stephens explains US tax requirements, and interviews Pavel Lyshko, finance director of Russia's FEMCO.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Bollinger Wins Contract for Phase II FRC Builds

Louisiana shipbuilder Bollinger Shipyards announced it has secured a contract to build Phase II of the Sentinel Class Fast Response Cutters (FRC) for the United States Coast Guard (USCG).

Massive Layoff Ahead for Hyundai Heavy

Another massive reduction in the Korean shipbuilding workforce may come as most shipyards are still struggling with falling orders and mounting losses, reports Yonhap quoting industry sources.

Daewoo Shipyard Posts Q1 Operating Loss

South Korean shipbuilder Daewoo Shipbuilding & Marine Engineering Co. posted a first-quarter loss after incurring more costs to finish some offshore projects.   First-quarter

Finance

Offshore Casualty: Harkand Group Collapses

As the prolonged slump in energy prices continues to drag on a number of oil and gas and maritime players, word has it that Harkand Group has succumbed, according to staff reports and a report on www.

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

ITIC Reports on Ship Agents' Costly Transhipment Errors

International Transport Intermediaries Club (ITIC) says it continues to deal on a regular basis with claims resulting from errors by agents involving transhipment cargoes.

 
 
Maritime Security Maritime Standards Naval Architecture Offshore Oil Port Authority Salvage Ship Electronics Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0794 sec (13 req/sec)