Review of financial reporting – Siem Shipping Inc.
Published: 19 November 2014
Last updated: 18 March 2019
Finanstilsynet has reviewed certain aspects of the 2013 financial statements of Siem Shipping Inc ("SSI"). The review has covered, inter alia, impairment testing of assets and disclosure of revenue, reliance on major customers and leases.
SSI is operating in the specialised reefer industry under the trading name Star Reefers. At year-end 2013 the company controlled a fleet of 32 reefer vessels, of which 19 vessels were owned by the company.
Finanstilsynet has requested the company to disclose additional information on key assumptions used in the company's impairment testing, with the aim of providing users of the financial statements a better understanding of the judgments made. The company has informed Finanstilsynet that additional information will be disclosed in the future.
The company did not give sufficient information about geographical distribution of revenue, revenue type and reliance on major customers. Finanstilsynet has also informed the company of the requirement to disclose revenues for each type of product or service, including a separation of lease payments from payments for other services included in a time charter contract. The company was also requested to report the required disclosures for lessors. SSI has informed that the company will disclose information according to the respective requirements in future reporting.