Company: ASC
Filing Date: 2025-03-07
Form Type: 20-F
Source: 0001558370-25-002500
Chunk: 169

Company: Ardmore Shipping Corp
Filing Date: 2025-03-07
Form: 20-F
Item: Item 19
Chunk 169
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                    973,181                                                            

(1) International Maritime Organization (“ IMO”) cargo classification.

2. Significant Accounting Policies

2.1. Basis of preparation

The accompanying consolidated financial statements, which include the accounts of Ardmore and its subsidiaries, have been prepared in accordance with accounting principles generally accepted in the United States of America (“ U. S. GAAP”). All subsidiaries are100% directly or indirectly owned by Ardmore. AASML, a joint venture in which the Company has a50% interest, is accounted for using the equity method. The Company’s10% investment in Element 1 Corp. is also accounted for using the equity method as the Company is able to exercise significant influence. All intercompany balances and transactions have been eliminated on consolidation.

F-12

Table of Contents

2.2. Uses of estimates
The preparation of the consolidated financial statements in accordance with U. S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. On an on-going basis, management evaluates the estimates and judgments, including those related to uncompleted voyages, future drydock dates, the selection of useful lives for vessels, vessel valuations, residual value of vessels, expected future cash flows from vessels to support vessel impairment tests, provisions necessary for receivables from charterers, the selection of inputs used in the valuation model for share-based payment awards, provisions for legal disputes and contingencies. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable. Actual results could differ from those estimates.
2.3. Reporting currency
The consolidated financial statements are stated in U. S. Dollars. The functional currency of the Company is U. S. Dollars because the Company operates in international shipping markets in which most transactions are denominated in the U. S. Dollar. Transactions involving other currencies during the year are converted into U. S. Dollars using the exchange rates in effect at the time of the transactions. Resulting gains and losses are included in the accompanying consolidated statements of operations.
2.4. Recently issued accounting pronouncements
Recently adopted
In November 2023 the FASB issued Accounting Standards Update 2023-07, Improvements to Reportable Segment Disclosures, which amends the existing segment reporting guidance (Accounting Standards Codification Topic 280) to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker (“ CODM”)