Shipping accounts lack clarity

THE SHIPPING INDUSTRY is still lacking clear financial reporting, according to a report.

KPMG’s study found that a third of the world’s biggest shipping companies produce no publicly available accounts. The figures are an improvement on 2008’s survey, when 44% failed to produce accounts.

More companies are producing accounts in line with IFRS.

John Luke, KPMG’s global head of shipping said: “The improvements are encouraging and perhaps a reflection of the growing demand for transparency from the sector’s supply chain and financiers. What we are seeing is a shift in both regulation and practice towards producing accounts, and producing them in IFRS which is helpful.

“Capital is in short supply whether this is debt capital or equity; therefore shipowners should be interested in presenting themselves in the best possible light if they are after some of that capital.”

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Fiona Westwood of Smith and Williamson.