Service 03 — Vessel Depreciation & Asset Management
Your Vessel Assets,
Accounted for Correctly
Depreciation schedules and financial asset records maintained with the detail auditors, insurers, and lenders expect — covering hull, machinery, dry-dock capitalisations, and annual summaries for each vessel.
Asset records that hold up under scrutiny — from auditors, insurers, and lenders alike
Vessel assets are long-lived, high-value, and complex to account for correctly. Hull and machinery components depreciate at different rates. Dry-dock expenditure needs to be capitalised rather than expensed. Classification society surveys affect both cost allocation and impairment assessments.
This service maintains the full depreciation schedules and financial records for each vessel — structured to meet the requirements of financial reporting, insurance documentation, and lender review without needing to be reformatted each time.
Each year, you receive an asset summary that reflects the current financial position of each vessel — useful for board reporting, refinancing discussions, and keeping your records complete and audit-ready.
CYCLE
Annual
Asset summaries and depreciation schedules updated yearly
SCOPE
Per Vessel
Records maintained individually for each vessel in the arrangement
COVERAGE
Full Asset
Hull, machinery, dry-dock costs, and impairment assessments
PRICING
$650
USD per year, per vessel
Vessel depreciation is one of the areas where maritime accounting most commonly diverges from standard practice
Hull and machinery don't depreciate as a single unit
The hull, main engine, auxiliary systems, and other machinery components have different working lives and replacement cycles. Treating a vessel as a single depreciating asset produces figures that don't accurately reflect the financial position — and don't satisfy auditors who understand the sector.
Dry-dock expenditure needs careful treatment
Dry-docking costs are substantial and occur on a schedule tied to classification society requirements. Whether these costs are capitalised or expensed — and over what period — has a material effect on the reported asset value and profitability of the vessel. Getting this wrong creates issues when auditors or lenders review the accounts.
Impairment assessments require sector-specific judgement
Market values for vessels move with freight rates, vessel age, and fleet supply dynamics. Determining whether an impairment review is needed — and what it should reflect — requires familiarity with how vessel asset values behave, not just accounting standards in isolation.
Insurance and financing documentation has specific requirements
Insurers and lenders often require asset schedules and financial summaries that demonstrate how vessel values are being maintained and accounted for. Producing these from records that weren't structured for this purpose adds time and effort that could be avoided with the right setup.
What this service maintains and delivers
The service covers every component of vessel asset accounting — from initial cost allocation through to annual impairment review and summary reporting.
01
Acquisition Cost Allocation
Purchase price allocated across hull and individual machinery components in accordance with their respective useful lives — establishing the foundation for depreciation calculations that are defensible under audit.
02
Depreciation Schedules
Depreciation calculations maintained for each component across its working life. Schedules updated annually and structured so they can be extracted cleanly for inclusion in financial statements or provided to auditors.
03
Dry-Dock Capitalisation
Dry-dock expenditure assessed for capitalisation versus expensing in accordance with the applicable accounting framework. Capitalised amounts added to the relevant asset component and depreciated over the interval to the next scheduled dry-dock.
04
Impairment Assessments
Periodic review of whether vessel carrying values remain appropriate given market conditions and the vessel's operating profile. Assessments documented with reference to observable market data and sector-relevant indicators.
05
Annual Asset Summaries
Year-end asset summaries for each vessel, showing opening book value, additions, depreciation charge, and closing net book value. Formatted for inclusion in financial statements and suitable for insurer or lender distribution.
06
Insurance Documentation Support
Asset records and depreciation schedules maintained in a format that supports hull & machinery insurance documentation — providing insurers with the financial basis for agreed vessel values and coverage assessments.
How the asset records are set up and maintained over time
The initial setup requires more input from your side than the ongoing maintenance — but once the records are established, annual updates are straightforward for both parties.
Vessel Particulars Gathered
We gather the acquisition documentation, original purchase price, and any existing depreciation records. Classification society survey history is also referenced during setup.
Cost Allocation & Schedules Built
Acquisition cost is allocated across hull and machinery components, and depreciation schedules are built for each. Existing dry-dock expenditure is reviewed and incorporated correctly.
Annual Updates
Each year, the schedules are updated with new depreciation charges, any dry-dock capitalisation from the period, and an impairment review where market conditions warrant it.
Asset Summary Delivered
The annual asset summary is delivered in a format ready for inclusion in financial statements, insurer review, or lender reporting — without additional reformatting required.
SERVICE 03
Vessel Depreciation & Asset Management
Depreciation schedules and financial asset records for vessel owners — maintained annually and structured for financial reporting, insurance, and lender documentation.
ANNUAL INVESTMENT
$650
USD per year, per vessel
The annual fee covers full maintenance of the depreciation schedules, dry-dock capitalisation treatment, impairment review, and the year-end asset summary for the vessel. Multi-vessel arrangements are accommodated at the same per-vessel rate.
DISCUSS THIS SERVICEWHAT'S INCLUDED
Acquisition cost allocation across hull and machinery components
Depreciation schedule maintenance, updated annually
Dry-dock cost capitalisation and amortisation treatment
Periodic impairment assessment with documented basis
Annual asset summary per vessel (opening value, additions, depreciation, closing NBV)
Documentation suitable for audit, insurance, and lender review
Multi-vessel arrangements at the same per-vessel rate
How vessel asset records are built to be accurate and defensible
The approach starts with the vessel's acquisition documents and works forward. Cost allocation between hull and machinery components is based on the specific vessel type, classification survey intervals, and the expected working lives of each system — not a generic split applied across all vessels.
Dry-dock expenditure is reviewed against the charter party and classification requirements for that vessel before capitalisation decisions are made. The amortisation period is set by reference to the interval to the next scheduled dry-dock, not by convention.
Impairment reviews are conducted with reference to observable second-hand vessel values and sector conditions, documented with the basis for the conclusion so that auditors have what they need to concur with or challenge the assessment on solid grounds.
Vessel-specific cost allocation
Component splits reflect the actual vessel type and survey intervals — not a formula applied uniformly across a fleet without reference to the specific asset.
Survey-aligned dry-dock treatment
Capitalisation decisions and amortisation periods tied to classification society survey requirements — matching the accounting treatment to the operational reality of the vessel.
Documented impairment basis
Every impairment assessment includes documented reference to market data and the specific factors considered — so the conclusion is supportable, not just asserted.
Multi-purpose output
The annual asset summary is structured to serve financial reporting, insurance, and lender needs simultaneously — eliminating the need to produce separate versions for each stakeholder.
OUR COMMITMENT
We're transparent about scope and approach before any commitment is made
Initial review at no charge
We review your existing vessel records and discuss what the setup process would involve before any engagement is formalised.
Scope agreed in writing
The specific vessels covered, the annual deliverables, and what's required from your side are all documented before work begins.
Records you can use independently
The depreciation schedules and asset summaries are yours — formatted so they can be provided directly to auditors, lenders, or insurers without mediation.
How the vessel records get established
The initial setup is the most involved stage — once the schedules are built, the annual maintenance cycle is straightforward.
STEP 01
Send an enquiry
Use the contact form to describe your vessels — how many, when they were acquired, and whether any depreciation schedules are currently in place.
STEP 02
Records review
We review the acquisition documents and any existing records, and discuss the setup approach — including how dry-dock history will be incorporated.
STEP 03
Schedules built
Cost allocation and depreciation schedules are established for each vessel. Existing dry-dock expenditure is reviewed and incorporated at the correct values.
STEP 04
Annual cycle begins
From the following year-end, annual updates and asset summaries are produced on the agreed schedule — requiring minimal input from your side to maintain.
Ready to put your vessel asset records in order?
If your depreciation schedules are incomplete, inconsistently maintained, or simply not structured the way auditors and lenders expect, this service is worth a conversation. Use the contact form to get in touch.
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