Home > Financials > Compliance with IFRS 15 & 16 Regulations

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The following workflows and features support compliance with the following regulations:

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For some clients and their auditors, IFRS 15 is interpreted that the voyage operating entity is not allowed to recognize revenue during the positioning of the ship into the load port. Instead of the discharge-to-discharge or redelivery-to-redelivery (or voyage completion percentage) recognition, the entity is expected to recognize basis load-to-discharge or delivery-to-redelivery.

When running Monthly Accruals or Voyage Period Journals, select P&L calculation option Adjust Portion for Ballast Days. Load-to-discharge or delivery-to-redelivery is used as P&L recognition basis when the check box is selected, otherwise, the full voyage duration is used as the basis. Voyage revenues and expenses will be allocated within the L/D period (for voyage charters) or Y/Z period (for TC Out voyages). Note that this does not have any impact on revenues/expenses that are applied to period; these will still be allocated to the period in which they were incurred. The change impacts any revenues and expenses that are prorated only.

To select Adjust Portion for Ballast Days by default, enable configuration flag CFGDefaultPnlCalcAdjustForBallastDays.

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Under IFRS 15, demurrage must be recognized as a variable consideration. Under this regulation, future (estimated) demurrage cannot be accrued or deferred to future periods after the vessel has gone on demurrage. Demurrage must be allocated to the period in which it is realized.

When running Monthly Accruals or Voyage Period Journals, select the P&L calculation option Apply Demurrage to Period. The behavior of this check box depends on the following configuration flags:

• CFGDefaultPnlCalcApplyDemurrage: There are three possible values:

  • PRORATE (default): Demurrage is prorated based on voyage proration logic: Voyage Days in Period / Total Voyage Days. The Apply Demurrage to Period check box is cleared by default; if the check box is selected, the calculation logic for BYDAYS is applied.

  • FULL: The Apply Demurrage to Period check box is selected by default, and 100% of a demurrage amount is applied to the P&L reporting period. (for this functionality to be applied, the following flag must also be enabled :

    CFGLaytimeEnablePeriodAllocation )

  • BYDAYS: The Apply Demurrage to Period check box is selected by default, and the amount of demurrage in the P&L reporting period is prorated. The prorata portion is calculated by the following logic: For each port call, Prorated Demurrage Amount = (Number of Days at Port within Period / Total Number of Days in Port in Voyage) × Demurrage Amount.

• CFGDefaultPnlCalcAdjustForDemurrageDays: When enabled, the portion percentage for other P&L items are adjusted based on the demurrage days in the period by default.

To quickly view demurrage period allocation details for a Laytime Calculation, open the Period Allocation form (configuration flag CFGLaytimeEnablePeriodAllocation must be enabled).

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Certain interpretations of IFRS 15 require that expenses incurred following a nomination date of a vessel to a voyage and prior to the start of a performing period are to be capitalized to a balance sheet account and then amortized over the life of the performing period. In this interpretation the nomination date is a specific date when a vessel is nominated to perform a cargo operation and the performing period is from the Start of First Load activity to the completion of Last Discharge activity.

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When the CFGCreateSimulatedAccrualNotifications flag is set to Y, a Create Simulated Notifications button will be present on the Accruals form. Clicking this button instead of the Create Accrual Journals will generate invoice messages to be sent do a downstream system without actually creating the journal in VIPthe Veson IMOS Platform.

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Requires notificationsIncludeList to have ‘invoice’ included.

IFRS 16

Note: Configuration flag CFGEnableTCLeaseAccounting must be enabled.

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With the help of a Veson Nautical consultant, set up Business Rules for the following journal types.

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Lease Cost Journals

When you create Voyage Period Journals, lease line items are included:

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