Company: DSX-PB
Filing Date: 2025-03-21
Form Type: 20-F
Source: 0001562762-25-000050
Chunk: 159

Company: DIANA SHIPPING INC.
Filing Date: 2025-03-21
Form: 20-F
Item: Item 5
Chunk 159
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been

prepared

in

accordance

with

U. S.

GAAP.

The

preparation

of

those

financial

statements

requires

us

to

make

estimates

and

judgments

that

affect

the

reported

amounts of

assets

and liabilities,

revenues and

expenses and

related disclosure

of

contingent

assets and liabilities at the date of our financial statements. Actual

results may differ from these estimates

under different assumptions and conditions.

Impairment of Vessels

Long-lived assets

are

reviewed for

impairment whenever

events

or

changes in

circumstances (such

as

market conditions,

obsolesce or

damage to the

asset, potential sales

and other

business plans)

indicate

that the

carrying amount

of an

asset may

not be

recoverable. When

impairment indicators

are identified

and the estimate

of undiscounted projected

net operating cash

flows, excluding interest

charges, expected

to be generated

by the use

of an asset

over its remaining

useful life and

its eventual disposition

is less than

its carrying

amount, the

Company evaluates

the asset

for impairment

loss. Measurement

of the

impairment

loss is based on the fair value of the asset, determined mainly by

third party valuations.

For

vessels, we

calculate undiscounted

projected net

operating cash

flows by

considering the

historical

and

estimated

vessels’ performance

and

utilization

with

the

significant

assumption

being

future

charter

rates for

the unfixed

days, using

the most

recent 10-year

average of

historical 1

year time

charter rates

available for

each type

of

vessel over

the

remaining estimated

life

of

each vessel,

net

of

commissions.

Historical

ten-year

blended

average

one-year

time

charter

rates

are

in

line

with

the

Company’s

overall

chartering strategy,

they reflect the

full operating history

of vessels of

the same type

and particulars with

the Company’s

operating fleet

and they

cover at

least a

full business

cycle, where