Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 171

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 19
Chunk 171
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2025-01 which clarifies the effective date of ASU 2024-03 with respect to interim periods.

F-13

Table of Contents

The standard is effective for annual reporting periods beginning after 15 December 2026, and for interim reporting periods within annual reporting periods beginning after December 15, 2027. The Company is currently evaluating the impact of its pending adoption of this standard on its financial statement disclosures.
On November 26, 2024, the FASB issued Accounting Standard Update 2024-04, Debt - Debt with Conversion and Other Options (Subtopic 470-20), which amends ASC 470-202 to clarify the requirements related to accounting for the settlement of a debt instrument as an induced conversion. The amendments in this update are effective for fiscal years beginning after December 15, 2025, and interim periods within those annual reporting periods. Early adoption is permitted if the entity has also adopted ASU 2020-06 Accounting for Convertible Instruments and Contracts in an Entity’s Own Equityfor that period. The Company is currently evaluating the impact of its pending adoption of this standard on its financial statement disclosures.
2.5. Revenue, net
Revenue is generated from spot charter arrangements and time charter arrangements, net of address commission and provisions for demurrage.
Spot charter arrangements
In the Company’s spot charter arrangements, the charterer hires a vessel to transport a specific agreed-upon cargo for a single voyage that are generally short in duration (less than two months), which may contain multiple load ports and discharge ports. The consideration in such a contract is determined on the basis of a freight rate per metric ton of cargo carried or occasionally on a lump sum basis. The contract generally has standard payment terms of freight paid within three to seven days after completion of loading. Revenue from voyage charters is recognized when (i) the parties to the contract have approved the contract in the form of a written charter agreement and are committed to perform their respective obligations, (ii) we can identify each party’s rights regarding the services to be transferred, (iii) we can identify the payment terms for the services to be transferred, (iv) the charter agreement has commercial substance (that is, the risk, timing, or amount of our future cash flows is expected to change as a result of the contract) and (v) it is probable that we will collect substantially all of the consideration to which we will be entitled in exchange for the services that will be transferred to the charterer
Spot