Impact of IFRS: Shipping: Following a year of evident struggle to find comparable financial reports and relevant reporting information for the biggest shipping companies in the world, this publication aims to leverage our learnings and assess the impact of IFRS on the shipping industry, looking in detail at some of the significant issues company boards and their finance teams face when using IFRS, and examining how shipping companies are dealing with some of the more complex IFRS in practice.
The final report considers conversations between shipping companies and KPMG member firms and leverages off the experience of both in undertaking GAAP conversions to IFRS on the key areas outlined below, identified as those most sensitive to the operational reality of the shipping industry:
- Cost capitalization
- Depreciation and residual value
- Impairment of non-financial assets
- Consolidation and joint arrangements
- Revenue and costs
- Financial instruments
- Segment reporting
- First-time adoption
Each issue is given due consideration by dealing with the complexity in practice and by providing specific examples to illustrate the application of IFRS.