Course description
This course on FOB Shipping Point and FOB Destination Accounting provides a comprehensive understanding of the accounting principles and concepts related to FOB shipping transactions. Over five days, participants will learn about the identification and division of costs in FOB shipping, the treatment of FOB accounts, and the accounting treatment of various non-FOB items.
Additionally, the course covers income treatment, valuation of closing inventories, provisioning for unfinished voyages, and accounting for FOB shipping consignments. Participants will also gain insights into performance measurement in the shipping business, including liquidity measurement ratios, profitability ratios, and debt and equity considerations.
Lastly, the course addresses key accounting and reporting issues specific to the shipping industry, such as fair valuation assessment of vessels, impairment assessment, and joint operations arrangements under IFRS 11.
Upcoming start dates
Outcome / Qualification etc.
By the end of this course, participants will:
- Understand the general accounting principles and concepts related to FOB shipping.
- Identify and divide costs in FOB shipping transactions
- Differentiate between FOB shipping point and FOB destination
- Prepare FOB accounts and handle FOB freight prepayments
- Apply accounting treatment to non-FOB items and calculate income from freight, primage, and passage money
- Value closing inventories and provision for unfinished voyages
- Record accounting entries for FOB consignments in the books of both consignors and consignees
- Perform physical inventory counts and account for the sale of inventory by consignees
- Measure performance in the shipping business using liquidity measurement ratios, profitability ratios, and debt and equity considerations
- Address accounting and reporting issues specific to the shipping industry, such as fair valuation assessment of vessels, impairment assessment, and joint operations arrangements under IFRS 11
Training Course Content
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
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London Maritime Academy
London Maritime Academy provides a wide range of maritime training courses tailored to the global industry. Located in London and known for international standards, we offer diverse Classroom and Online courses taught by highly experienced experts in the maritime sector....