more-arw search

Q&A Forum

accounting for receipt of insurance claim

Krishna Khaitan's Profile

Hi We had a fire in our plant which resulted in insurance claim for Property damage and Business interruption. For simplicity, Let me put some numbers; Damage to property, corrected by spending on repairs - $500K Business Interruption claim - $400K Total insurance claim $900K Insurance claim received $150K (deductible $750K) We have accounted for repairs of $500K as a part of repair cost. How do I account for receipt of insurance claim of $150K. Krishna


Topic Expert
Keith Perry
Title: Director of Global Accounting
Company: Agrinos, Inc.
(Director of Global Accounting, Agrinos, Inc.) |


Basically you send it all to Other Income / Expense, as it is non-operating. Lumping it all together helps to clarify the impact.

E&Y has a nice publication here:$FILE/TechnicalLine_BB2425_HurricaneSandy_2November2012.pdf

So, for the claim it is
DR Cash
CR Other I/E




Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.