ICS Challenges Proposed Accounting Standards

MarineLink.com
Tuesday, September 24, 2013
Peter Hinchliffe

The global trade association for shipowners, the International Chamber of Shipping (ICS), has submitted detailed comments to the International Accounting Standards Board (IASB) on its controversial proposals to overhaul international accounting rules for leases, which could have an impact on contracts used in international shipping, including those governing operational arrangements.

Following intensive discussion amongst its member national shipowners’ associations during the last few weeks, the ICS comments represent the consensus view of the world’s shipowners.

ICS Secretary General, Peter Hinchliffe remarked: “ICS has again tried to explain to IASB that the use of a variety of shipping contracts, including time and voyage charters, reflects the long-established modus operandi of the shipping industry.   These arrangements are transportation service contracts.  They are not an attempt to disguise the use of financial leases, or the ‘Enron’ scale abuses which the new IASB standards are intended to prevent.

He added, “Shipowners have no problem with being transparent about such arrangements which can be dealt with through notes in company accounts, but they should not be treated as balance sheet liabilities.”

“The majority of our members still have concerns about the latest IASB proposals, which, if ever implemented, could even result with some companies becoming in technical breech of existing covenants with financial institutions,” Mr Hinchliffe said.

In its latest comments, ICS objects to the IASB proposals in principle and highlights their complexity and the difficulties that many shipping companies would face in complying with them.  ICS seriously questions the benefits to third parties’ understanding of the financial position of shipping companies relative to the cost and complexity involved with implementing the proposals. ICS therefore requests that the IASB drops its proposals and instead, if felt necessary, make improvements to the classification of leases in existing IASB standards.

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

Video: USCG Medevacs Navy Sailor off Virginia

The U.S. Coast Guard (USCG) medevaced a man Wednesday from a Navy vessel off the Virginia coast after watchstanders at Coast Guard Sector Hampton Roads in Portsmouth

VT Halter Begins Building LNG-powered ConRo Ships for Crowley

VT Halter Marine, Inc., a subsidiary of Vision Technologies Systems, Inc. (VT Systems), has commenced construction on the first of two liquefied natural gas (LNG)-powered,

New Research Vessel Delivered on the Great Lakes

The new oceanographic research and fisheries assessment vessel, Arcticus, completed her sea trials and was delivered to the U.S. Geological Survey's Great Lakes Science Center on October 17.

Logistics

NYK Line Joins PNW West Coast Metro Pool

Effective October 20, 2014, NYK Line has become a member of the PNW West Coast Metro Pool (WCMP) operated by Trac Intermodal. The WCMP operates chassis at all major marine terminals,

Long Beach Cargo Continues to Climb

Cargo container traffic rose 7.3 percent in September at the Port of Long Beach compared to the same month last year, making for the Southern California seaport’s busiest September since 2007,

Continership Alliance Expands to US Trades

The CKYHE Alliance (COSCO, "K" LINE, Yang Ming, Hanjin Shipping, and Evergreen Line) has announced they will expand their cooperation scope to U.S. Trades and CKYHE

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Salvage Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2189 sec (5 req/sec)