Читать книгу Wiley GAAP: Financial Statement Disclosure Manual - Joanne M. Flood - Страница 70

A severe rainy season affected many parts of Mississippi in December 20X0 and caused the company to case manufacturing at its facility in Mississippi dues to a breach of a levy and flooding at the industrial park where the facility is located. The Company established temporary offices and worked with customers to meet critical needs through other manufacturing facilities. The facility re‐established manufacturing operations on April 2, 20X1.

The Company maintains property and business interruption insurance policies. On February 4, 20X1, the Company filed a $5.0 million claim under one of its insurance policies to cover both the property damage and the business interruption. The policy had a $1.0 million deductible. In fiscal 20X1, the Company collected $4.0 million as settlement of the claim under the policy.

The Company included in Operating income (loss) for fiscal year 20X1 the $4.0 million of insurance proceeds related to recovery of certain losses recognized for property damage and business interruption experienced by the Company. Of the $4.0 million recorded for fiscal 20X1, $3.0 million were recorded in cost of goods sold and $1.0 million were recorded in Selling, general, and administrative expenses in order to offset the recognized losses.