Dear all,

We have given a contract to ship builders for construcing a vessel. As per the contract terms, if the builder delay the delivery of the vessel beyond agreed delivery date, they have to give us penalty of USD 10,000 per day. Now they have delivered the vessel after 373 days of the agreed date and we have received the penalty from them. How we can account the penalty income in our books, either as penalty income or by reducing the capital cost of the vessel. Kindly refer relevant IFRS or standard

Thank you

shas