FOB Shipping point and FOB destination Accounting

Course Info

Length: 1 Week

Type: Online

Available Dates

Fees

  • Dec-09-2024

    2,575

Course Details

Course Outline

5 days course

General Accounting Principles and Concepts

  • Accounting Guidance in FOB shipping
  • Identification and division of costs in FOB shipping
  • Identification of FOB shipping point
  • Identification of FOB destination

Preparation of FOB accounts

  • Treatment of FOB freight prepayments
  • Treatment of FOB shipping point, freight prepaid and charged back

Accounting treatment of non-FOB items:

  • Free alongside
  • Free carrier
  • Delivered ex-ship
  • Ex-works

Treatment of income:

  • Freight, primage, passage money. 
  • Valuation of closing inventories, unfinished coals, fuels, etc.
  • Provisioning for unfinished voyages.

Accounting for FOB Shipping consignment

  • Accounting entries for FOB consignments,
  • Accounting entries in the books of the FOB consignor 
  • Accounting entries in the books of the FOB consignee
  • Physical inventory count
  • Sale of inventory by consignee
  • Recognition of profit

Performance measurement in shipping business

  • Liquidity measurement ratios
  • Cash flow management
  • Profitability ratios
  • Debt and equity considerations

 Key reporting accounting and reporting issues

  • Going concern assessment
  • Fair valuation assessment of vessels
  • Drydocking, construction, retrofit delays. 
  • Impairment assessment of vessels
  • Impairment assessment of goodwill
  • Joint operations arrangements under IFRS 11