Course Description

This is a practical 10-day workshop covers the financial and accounting issues associated with shipping industry. Using real examples and exercises, the participants will learn how to deal with those issues.

Course Goal

To enhance the participants’ knowledge, skills, and abilities necessary to understand and apply the concepts, principles, policies, and methods of Accounting in shipping industry

Course Objectives

By the end of this course, the participant will be able to:

1. Understand the accounts of companies in the shipping business.
2. Communicate intelligently with professional accountants on matters of management accounts, statutory accounts and methods of financing.

Course Outline

• Accounting Systems and Structure

1. Accounting Systems
2. Structures to Report to Management, Shareholders and to Comply with Statutory Requirements and the Financial Data Required to Satisfy These Needs.

• Concepts and Conventions

1. The Business Entity

• Distinction Between the Business and its Owners
• Money as a Measurement Medium and Unit of Account

2. Conventions

• Going Concern
• Accruals
• Consistency

3. Prudence and Recommended Practices

• Financial Reports

1. Statutory Requirements Concerning Preparation of Annual Report and Accounts
2. Trial Balance
3. Income Statement
4. Balance Sheet
5. Cash Flow Statement.

• Interpretation Of Financial Information

1. Annual Accounts
2. Financial Press
3. Ratio Analysis
4. Inter-Company Comparison.

• Budgeting and Forecasting

1. Cost Concepts and Classifications
2. Need for Budgetary Control
3. Preparation of Budgets
4. Using Budgets for Forecasting
5. Forward Planning
6. Cost Behavior
7. Variance Analysis.

• Cash Flow Management

1. Preparation of Cash Flow Statements and Working Capital Requirements

• Investment Appraisal

1. Appraisal Methods
2. Depreciation and Replacement of Assets
3. Return on Capital Employed.

• Financing

1. Borrowing
2. Leasing
3. Retaining Funds
4. Sale and Leaseback
5. Financial Institution Loans
6. Stock Exchanges.

• Shipping Accounts Freight and Hire Collections

1. On/Off Hire Statements
2. Port Disbursement Accounts
3. Voyage Estimates and Port-Voyage Audit
4. Foreign Currency Transactions.
5. The Role of the Computer in Accounting.