This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

Financial Reporting Alert 17-6, Financial Reporting Implications of Disasters

Published on: Oct 17, 2018

Originally issued September 20, 2017 (Last updated October 17, 2018)

This Financial Reporting Alert highlights some of the financial reporting implications of disasters for entities reporting under U.S. GAAP. North America has recently been affected by Hurricane Florence, and with several weeks of hurricane season left, it is possible that other storms may follow. Disasters can also take other forms, such as wildfires, earthquakes, or the September 2001 terrorist attacks on the World Trade Center in New York and the Pentagon outside Washington, D.C.

In addition to tragic loss of life, disasters can cause widespread damage and destruction of property and varying degrees of business activity disruption in affected regions and, in some cases, other areas of the world. Some entities may have principal operations in the affected area, while others may have ancillary operations or interests in the affected region. Other entities may be affected as a result of relationships with major suppliers physically located in the affected region. In addition, insurance entities may experience significant losses as a result of a disaster.

A number of financial reporting implications can arise as a result of a disaster. Such implications can include the accounting for asset impairments, income statement classification of losses, insurance recoveries, and additional exposure to environmental remediation liabilities. This Financial Reporting Alert identifies potential implications and applicable authoritative guidance. The financial reporting implications discussed in this Financial Reporting Alert are not intended to be all-inclusive but as a starting point for thinking about the issues that might arise.

This publication was released by our US firm.



Related Topics

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.