Who should attend: Accountants and shipping accountants, controllers and finance directors, who work within the maritime sector.
Objectives and benefits: The masterclass aims to refresh the main IFRS concepts relevant to this subject and to take the participant through a thorough example that covers the full implementation of these concepts. US GAAP differences are also covered as commentary.
- Recap of the basic general information on loan covenants:
- What is a loan covenant and why is it included in the loan agreements?
- Main classification of the loan covenants.
- Common loan covenants in the shipping loan agreements.
- Illustrative example of covenants compliance testing.
- Go through the effect of a loan covenant breach in the Financial Statements:
- Presentation of loan liabilities in the Financial Statements.
- Loan Covenant Waiver.
- Is a breach always easily identifiable?
- Additional disclosures in the Financial Statements.
- Going Concern considerations.
- Discuss the differences between IFRS and US GAAP in this area.
Legislation & References: Industry practices