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.


Finance

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Kongsberg Performs Well in Q2

Norwegian defence and marine technology company Kongsberg Gruppen's second quarter 2016 (Q2) financial results shows sales performance broadly in line with recent trends,

News

NParks, Keppel in S$2.08 mln Partnership for Restoring Singapore Forest Wetlands

The National Parks Board (NParks) and Keppel Corporation today unveiled plans for a partnership to restore the freshwater forest wetland ecosystem historically

Zumaia Offshore Acqires MPP Workboat Aitana B

In April 2016 Zumaia Offshore, S.L., leading workboat owner and operator based in the Basque Country, took delivery of the Cummins-powered MPP workboat “Aitana

Skaugen Goes to Red Again

Norwegian Marine Transportation Service Company I.M. Skaugen SE reported interim losses but cautiously positive and expecting a gradual recovery of trading opportunities

Logistics

How Rapid is the Fleet Growth?

During July 2016, the containership fleet reached a landmark 20 million TEU in terms of aggregate capacity, says Clarksons Research.   To many it only seems

Maersk Line's Innovative Smart Reefers

Have you heard about Maersk Line's smart reefers that can listen and talk? Cutting edge technology that reduces risk in customer supply chain, claims Maersk Line.

Rickmers Holding, E.R. Capital Drop Merger Plan

Rickmers Holding AG and E.R. Capital Holding have jointly decided not to pursue the merger of their ship management activities.   For many years the companies

 
 
Maritime Contracts Maritime Standards Naval Architecture Navigation Pipelines Pod Propulsion Port Authority Ship Repair Shipbuilding / Vessel Construction 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: 0.1329 sec (8 req/sec)