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.
Notes
1 1 Application of Regulations S-X (17 CFR PART 210) can be found on the ecfr.gov website.
2 2 This bulleted item is effective upon implementation of ASU 2017‐12.
3 3 Upon implementation of ASU 2016‐13, this reference will change to ASC 326‐30‐35‐2.
4 4 Upon implementation of ASU 2016‐13, this bullet point is superseded.
5 5 Ibid.
6 6 This bulleted item is effective upon implementation of ASU 2018‐02, Financial Services—Insurance (Topic 944): Targeted Improvements to the Accounting for Long‐Duration Contracts.
7 7 Ibid.
8 8 Life insurers should exclude from amounts reclassified out of accumulated other comprehensive income changes in unrealized gains and losses on available‐for‐sale debt securities associated with direct adjustments made to policy liabilities necessary to reflect these balances as if such unrealized gains and losses were realized. (ASC 220‐10‐55‐15C)
9 9 Ibid.
10 10 Ibid.
6 ASC 230, STATEMENT OF CASH FLOWS
1 Authoritative Literature Subtopic Scope and Scope Exceptions
2 Practice Alert Information People Timing
3 Presentation and Disclosure Requirements Objective Cash and Cash Equivalents Restrictions on Cash and Cash Equivalents Gross versus Net Basis Classification of Cash Receipts and Disbursements Operating Activities—Cash Inflows Operating Activities—Cash Outflows Investing Activities—Cash Inflows Investing Activities—Cash Outflows Financing Activities—Cash Inflows Financing Activities—Cash Outflows Other Issues Related to Classification of Cash Flows Acquisition and Sales of Trading Debt Securities Insurance Proceeds and Payments Distributions Received from Equity Method Investees More Than One Class of Cash Flows Discontinued Operations Noncash Investing and Financing Activities Reporting Hedging Transactions Other Topics with Cash Flow Subtopics Format of the Statement of Cash Flows The Direct Method The Indirect Method Reconciliation of Net Income and Net Cash Flow from Operating Activities
4 Presentation and Disclosure Examples Example 6.1: Statement of Cash Flows (without Details of Operating Activities) Operating Activities Presentation Example 6.2: Operating Activities: Formats for Direct and Indirect Methods Example 6.3: Statement of Cash Consolidated Entities Example 6.4: Cash and Cash Equivalents—Accounting Policy Example 6.5: Accounting Policy for Cash and Cash Equivalents, Including Details Example 6.6: Amount of Interest and Income Taxes Paid and Noncash Investing and Financing Activities Example 6.7: Amount of Interest and Income Taxes Paid and Noncash Investing and Financing Activities Example 6.8: Nature of Restrictions on Cash and Cash Equivalents Restricted Cash Example 6.9: Nature of Restrictions
