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Maritime Financial Reporting

Maritime Assets held for Sale

A vessel can have an economic life of approximately 25 years or more. It is presented on a company’s statement of financial position as a non-current asset and is usually collateralized so that the company can raise funds by means of a loan from a financial institution.

Impairment of Maritime Assets

For a vessel-owning company, the vessel is the most substantial and valuable part of the total assets within the statement of financial position. Essentially, for the financial statements to present a true and fair view of the company’s financial position as at the year-end date, the carrying amount of its vessel should be fairly stated.