Joined: 26 Aug 2010
Online Status: Offline Posts: 1
Posted: 26 Aug 2010 at 12:05 | IP Logged
The business where I work had part of their roof damaged in a storm in July. The old roof wasn't completely destoryed. We just restored the roof and collected the insurance. How do we handle the proceeds from the insurance? I really need to be able to show US GAAP standards as backup for my position. Please help!
Joined: 06 Nov 2010 Location: United States
Online Status: Offline Posts: 1
Posted: 06 Nov 2010 at 04:02 | IP Logged
The authoritative guidance is FASB Codification 605-40-
25-2 which essentially states that an involuntary
conversion of a nonmonetary asset to monetary assets and
the subsequent reinvestment of the monetary assets is not
an exchange transaction between an entity and another
entity. The conversion is a monetary transaction whether
the conversion is voluntary or involuntary and to the
extent the costs of a monetary asset differs from the
amount of proceeds received, a gain or loss is
recognized.
The estimated damage to the roof is written-off the cost
of the building/roof and the difference between that
amount and the insurance proceeds represents a gain or
loss.
Joined: 23 Nov 2010 Location: United States
Online Status: Offline Posts: 2
Posted: 23 Nov 2010 at 08:20 | IP Logged
Hi, You are so late. OK, don't worried because many insurance companies are provide house building policy. I know a best insurance company, named www.xn----zhcejfadqhj4opa.ws in Israel. So, you can visit this site very much. ________________ ביטוח | ביטוח רכב
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Topic: Insurance Proceeds from Storm Damage
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