IFRS 16 lease accounting for shipping companies
LOIS brings chartered vessels, containers, port equipment and property into one audit-ready IFRS 16 lease accounting system, built and supported by CA-qualified lease accountants.
What is LOIS for shipping companies?
LOIS is IFRS 16 lease accounting software for shipping companies that charter vessels, containers and port equipment. It records each charter once, remeasures index-linked hire and currency movements, and produces the schedules, journals and audit trail. CA-qualified lease accountants build and support it.
Fixed charter hire
Say the charter is fixed at US$20,000 per day. The rate is known for the whole term, so the lease liability is a known schedule from day one.
Index-linked charter hire
Now say hire is 95% of the relevant market index, subject to a minimum of US$12,000 per day. The rate resets with the market, and every reset means a remeasurement.
Which benchmark?
There's no single shipping index. The right Baltic Exchange assessment depends on vessel size, trade route, charter type and market convention ($/day, $/tonne or Worldscale).
The charter type decides the accounting
A bareboat charter is generally a lease, a time charter usually contains one plus a service component, and a voyage charter usually isn't a lease.
Short fixtures and options keep changing the term
Charters under 12 months make the short-term exemption a live decision, and every extension or early redelivery is a reassessment with a new schedule.
Variable hire sits outside the lease liability
Off-hire deductions and usage-linked payments are expensed as incurred, so every charter carries a capitalised hire element and a separate variable one.
USD charters, a different reporting currency
Hire is often paid in USD while the group reports in another currency, so the liability is remeasured at each reporting date, with the difference through profit or loss.
How does LOIS handle shipping lease portfolios?
Each charter is entered once, and LOIS generates the schedules, journals and audit trail behind it. Run it in-house, or hand the monthly cycle to the LOIS Managed Service.
Every modification, automated
Extensions, early redelivery, part terminations, consideration changes and index-linked adjustments each generate a new schedule and remeasurement journals.
Index-linked and variable hire
Index-linked hire is remeasured and usage-linked hire expensed, with both flowing to the lease liability, right-of-use asset and journals.
Multi-currency leases and reporting
LOIS holds leases in multiple currencies and reports in both functional and reporting currencies.
Audit history and version control
Every change is versioned with a timestamped audit trail, with read-only auditor access and dual approval on lease events.
Shipping companies using LOIS: MUR Shipping
MUR Shipping has run its office leases and vessel charters on LOIS since 2024: fixed, variable and index-linked pricing, with Baltic-index-driven adjustments processed daily or fortnightly.
"The system supports complex vessel lease arrangements, including frequent in-life changes driven by market indices such as Baltic shipping rates. LOIS is able to accommodate daily or fortnightly lease adjustments while maintaining IFRS 16-compliant accounting outcomes."
Dean Post - Director, MUR Shipping
Global standards compliance
Run reports under IAS 17, IFRS 16, AASB 16 and FASB ASC 842, with a dedicated reporting module and an automated general ledger for all journals and modifications.
- Asset, liability, future rentals and disclosure reports
- All relevant journals automated
Reporting & forecasting
LOIS's standard reports support compliance with IFRS 16, AASB 16 or FASB ASC 842, so you can track progress in real time.
- Forecasting reports
- Movements between defined date parameters
Consolidated dashboard
One dashboard gives a consolidated view of every active lease, so you can:
- See how active leases are distributed globally
- Spot leases that need immediate attention
- Drill down into key financial metrics and the ledger
Run reports under IAS 17, IFRS 16, AASB 16 and FASB ASC 842, with a dedicated reporting module and an automated general ledger for all journals and modifications.
- Asset, liability, future rentals and disclosure reports
- All relevant journals automated
LOIS's standard reports support compliance with IFRS 16, AASB 16 or FASB ASC 842, so you can track progress in real time.
- Forecasting reports
- Movements between defined date parameters
One dashboard gives a consolidated view of every active lease, so you can:
- See how active leases are distributed globally
- Spot leases that need immediate attention
- Drill down into key financial metrics and the ledger
-
Easy data upload
-
Custom data fields
-
Manage lifecycle & modifications
-
Amortisation & depreciation schedules
-
Journals & GL integration
Upload lease data manually, through a customised Excel template or through an ERP integration, so every charter and lease sits in one place.
- Regular and irregular rental profiles
- Unlimited document storage, including charter parties and addenda
- Save as a draft, then confirm to activate
Use custom fields for vessel name and IMO number, charter type and redelivery window, container counts by lessor, square metres for property, or usage hours for cranes and reach stackers.
LOIS covers every in-life amendment under IFRS 16, AASB 16 and FASB ASC 842:
- Full extensions and part terminations
- Full early terminations
- Consideration and indexation price changes
- Rental corrections and impairments
LOIS generates an asset and amortisation schedule at commencement and a new one with each modification, keeping earlier schedules for retrospective reporting.
LOIS creates journals for IFRS 16, AASB 16 and FASB ASC 842 entries, with general ledger codes you can map to your own. Export journals to Excel, or use the LOIS bespoke API to send them to your general ledger.
Lease Data & Lifecycle Management
Easy Data Upload
Easy Data Upload
Upload your lease data with ease to ensure all your critical lease information is centralised in one place.
LOIS’s intuitive design makes it easy to enter all types of leases either manually, through a customised Excel template or with full integration into other in-house systems via a bespoke integration tool.
- Regular and irregular profiles (multiple rentals with different periodicities)
- Multi-asset addition
- Unlimited document storage for all aspects of leases, including charter parties and addenda
- Ability to save mid input as draft lease or confirm to activate a lease
Custom data fields
Custom data fields
LOIS records as much detail as you need for your leased asset data. Use custom fields to save information such as vessel name and IMO number, charter type and redelivery window for chartered ships, container counts by lessor, square metres for port and office property, or usage hours for cranes and reach stackers.
Manage Lifecycle & Modifications
Manage Lifecycle & Modifications
All in-life lease amendments are catered for, adhering to the IFRS 16 and FASB ASC 842 standards covering all modifications. Charter extensions, early redeliveries, renegotiated hire and indexation on port property all run through the same automated process, with a new schedule stored on each change. LOIS covers all modifications:
- Full extensions
- Part terminations
- Full early terminations
- Consideration changes
- Indexation price changes (IFRS)
- Rental corrections and impairments
Amortisation and depreciation schedules
Amortisation and depreciation schedules
At the commencement of a lease, LOIS generates an asset and amortisation schedule based on the financial information inputted into the system. With each modification to the lease, a new amortisation and asset schedule is created and stored to allow retrospective reporting based on the schedules in play at that time. These schedules drive the accounting output.
Journals & GL Integration
Journals & GL Integration
LOIS will also generate the complex calculations whilst providing full general ledger functionality and a comprehensive audit trail.
Journals are created in the system for both IFRS 16 and FASB ASC 842 accounting entries. LOIS also has its own generic general ledger codes associated with each event in a lease’s life. These codes can be mapped to the user’s general ledger codes. Journals can be exported to Excel for upload to the general ledger or use our bespoke API to remit the journals to the user’s general ledger in an automated fashion.
Easy Data Upload
Upload your lease data with ease to ensure all your critical lease information is centralised in one place.
LOIS’s intuitive design makes it easy to enter all types of leases either manually, through a customised Excel template or with full integration into other in-house systems via a bespoke integration tool.
- Regular and irregular profiles (multiple rentals with different periodicities)
- Multi-asset addition
- Unlimited document storage for all aspects of leases, including charter parties and addenda
- Ability to save mid input as draft lease or confirm to activate a lease
Custom data fields
LOIS records as much detail as you need for your leased asset data. Use custom fields to save information such as vessel name and IMO number, charter type and redelivery window for chartered ships, container counts by lessor, square metres for port and office property, or usage hours for cranes and reach stackers.
Manage Lifecycle & Modifications
All in-life lease amendments are catered for, adhering to the IFRS 16 and FASB ASC 842 standards covering all modifications. Charter extensions, early redeliveries, renegotiated hire and indexation on port property all run through the same automated process, with a new schedule stored on each change. LOIS covers all modifications:
- Full extensions
- Part terminations
- Full early terminations
- Consideration changes
- Indexation price changes (IFRS)
- Rental corrections and impairments
Amortisation and depreciation schedules
At the commencement of a lease, LOIS generates an asset and amortisation schedule based on the financial information inputted into the system. With each modification to the lease, a new amortisation and asset schedule is created and stored to allow retrospective reporting based on the schedules in play at that time. These schedules drive the accounting output.
Journals & GL Integration
LOIS will also generate the complex calculations whilst providing full general ledger functionality and a comprehensive audit trail.
Journals are created in the system for both IFRS 16 and FASB ASC 842 accounting entries. LOIS also has its own generic general ledger codes associated with each event in a lease’s life. These codes can be mapped to the user’s general ledger codes. Journals can be exported to Excel for upload to the general ledger or use our bespoke API to remit the journals to the user’s general ledger in an automated fashion.
Collaboration & control
LOIS is built for finance, chartering, port operations and your auditors, with customised access levels and real-time data. It can be set up within four weeks without changing your existing systems. Bulk upload works for containers and port equipment as it does for fleet and transport and logistics leases. See the IFRS 16 lease accounting software page for the full feature set.
Dual approval workflow
Reminders for lease events, renewals and options.
Multi-level hierarchy and security
Fully customised to your teams and access levels.
Audit tracking
Every user access and amendment is tracked.
Cost centres and users
Cost centre allocations and unlimited users.
Additional LOIS features (optional add-ons)
Optional extras on top of your standard LOIS subscription.
The Sandpit
Model the financial impact of future lease changes without touching live data.
Low-value leases
Add them at a lower cost per lease and review the ROI of your whole portfolio.
Month-end process consulting
Our CA-qualified leasing accountants review and give feedback on your month-end process.
LOIS Lease Accounting software features
Everything you need to know about LOIS and how it supports IFRS 16, AASB 16 and FASB ASC 842.
LOIS Client success
stories
See how companies across industries use LOIS to streamline lease accounting and reporting.
Spreadsheets vs Lease Accounting Software - the best approach
The pros and cons of lease accounting software versus spreadsheets such as Excel.