FAQ
Frequently asked questions
Accounting questions specific to transport and logistics – fleet leasing, contracts, and TSL-specific risks.
How does IFRS 16 affect the balance sheet of a transport company?▾
Companies applying IFRS recognise operating leases on rolling stock (tractor units, trailers, vans) as right-of-use assets and lease liabilities. For companies with large leased fleets this means a material increase in total assets and leverage ratios. The auditor verifies the completeness of leases recognised, the discount rate, lease terms including extension options, and disclosure in the notes. Misclassification of lease contracts can significantly affect compliance with bank covenants.
What does an auditor check at a freight forwarding or carrier company?▾
In freight forwarding, key audit areas are: timing of revenue recognition (at loading, at delivery, or proportionally along the route), valuation of receivables from foreign counterparties (FX differences, unhedged currency exposure), completeness of payables to subcontractors and carriers at the balance-sheet date, and the correct recognition of right-of-use assets on leased rolling stock. For entities operating across multiple countries, the auditor also assesses tax risk from permanent establishments abroad.
How should long-term contract logistics agreements be accounted for?▾
Logistics contracts (warehouse outsourcing, transport outsourcing) are often multi-year arrangements with fixed and variable fee components. The auditor verifies: whether revenue is recognised in line with the progress of service delivery, whether contract initiation costs (setup costs – e.g. warehouse fit-out) are capitalised or expensed, and whether provisions for onerous contracts (where expected costs exceed expected revenues) are correctly measured and complete.
What risks does an auditor see in TSL companies with mixed own and leased fleets?▾
In companies with both owned and leased rolling stock, the auditor assesses: consistency of depreciation policy for owned vehicles with actual usage and residual values, completeness of operating and finance lease classification, and – for FX-denominated leases – the impact of exchange differences on liabilities and profit. Additional challenges include fuel and fleet-card accounting, driver allowance calculations, and the correct recognition of insurance and accident-damage claims.