Читать книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood - Страница 67

In May 20X1, the Company experienced a fire that damaged certain inventory and machinery and equipment at the production facility in Raleigh, North Carolina. The fire occurred after business hours and was fully extinguished quickly, with no injuries. The plant was back in full operation shortly thereafter with no significant disruption in supply or service to customers. The Company maintains adequate insurance coverage for its operations.

The total amount of the loss related to assets and the related expenses was $2,690,000. The majority of the Company's insurance claim relates to the recovery of damaged inventory. Through payments received in May 20X2 and March 20X3, the Company has recorded approximately $2,397,000 as a partial payment on the claim. This resulted in no gain or loss being recognized. As of December 31, 20X3, the Company reflects a receivable from the insurance company relating to this claim of $285,000, net of $232,000, and represents additional proceeds to be received. The deductible charge was expenses in Fiscal Year 20X1, as a component of cost of goods sold in the statement of operations and comprehensive income.