{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/220/30/","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","number":"220-30","topic":"220","title":"Business Interruption Insurance","area":"Presentation","paragraphs":6,"summary":"ASC 220-30 governs how an entity presents and discloses recoveries under business interruption insurance — insurance covering lost gross margin, a portion of fixed charges and expenses related to that lost margin, and extra expenses incurred to mitigate the interruption loss. The core rule is permissive on presentation: an entity may choose any classification of the recoveries in the statement of operations so long as it is not contrary to existing GAAP (220-30-45-1). In exchange for that flexibility, the Subtopic mandates note disclosure of the event and the amount and location of recoveries recognized.","concepts":["business interruption insurance","insurance recoveries","lost gross margin","fixed charges and expenses","income statement classification","note disclosure","extra expenses to mitigate loss"],"categories":["Presentation","Disclosure","Financial statement presentation","Contingencies and guarantees"],"level":"introductory","topic_title":"Income Statement—Reporting Comprehensive Income","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"220-30-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div> <div class=\"norm-text\"> <table class=\"asc-table\" id=\"SL114882165-224236\"> <tr> <td class=\"entry\"> <strong class=\"ph b\">Paragraph</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Action</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Accounting Standards Update</strong> </td> <td class=\"entry\"> <strong class=\"ph b\">Date</strong> </td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/b/#business-interruption-insurance\" class=\"term\" title=\"Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.\"><span>Business Interruption Insurance</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-CE689F3C-8CB3-4F0C-9F3C-EEEF5ED9D6A5.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-19 (PDF)</a> </td> <td class=\"entry\">11/15/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/glossary/g/#gross-margin\" class=\"term\" title=\"The excess of sales over cost of goods sold. Gross margin does not consider all operating expenses.\"><span>Gross Margin</span></a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-CE689F3C-8CB3-4F0C-9F3C-EEEF5ED9D6A5.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-19 (PDF)</a> </td> <td class=\"entry\">11/15/2017</td> </tr> <tr> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> <td class=\"entry\"></td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/220/30/#220-30-05-1\" class=\"xref\">220-30-05-1</a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-CE689F3C-8CB3-4F0C-9F3C-EEEF5ED9D6A5.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-19 (PDF)</a> </td> <td class=\"entry\">11/15/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/220/30/#220-30-05-2\" class=\"xref\">220-30-05-2</a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-CE689F3C-8CB3-4F0C-9F3C-EEEF5ED9D6A5.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-19 (PDF)</a> </td> <td class=\"entry\">11/15/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/220/30/#220-30-15-1\" class=\"xref\">220-30-15-1</a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-CE689F3C-8CB3-4F0C-9F3C-EEEF5ED9D6A5.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-19 (PDF)</a> </td> <td class=\"entry\">11/15/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/220/30/#220-30-45-1\" class=\"xref\">220-30-45-1</a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-CE689F3C-8CB3-4F0C-9F3C-EEEF5ED9D6A5.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-19 (PDF)</a> </td> <td class=\"entry\">11/15/2017</td> </tr> <tr> <td class=\"entry\"> <a href=\"/asc/220/30/#220-30-50-1\" class=\"xref\">220-30-50-1</a> </td> <td class=\"entry\">Added</td> <td class=\"entry\"> <a href=\"/asc-pdf/GUID-CE689F3C-8CB3-4F0C-9F3C-EEEF5ED9D6A5.pdf\" class=\"pdf-link\" target=\"_blank\" rel=\"noopener\">Maintenance Update 2017-19 (PDF)</a> </td> <td class=\"entry\">11/15/2017</td> </tr> </table> </div> </div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nBusiness Interruption Insurance | Added | Maintenance Update 2017-19 | 11/15/2017 |\nGros…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:868ee0b0f8b6dda5e8fa4397e54745c581e307965790741e3b87f7041c20b7cd","downloaded_from":"2026-09-09T23:04:31.551Z","last_downloaded_at":"2026-09-09T23:04:31.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483609","source_sha256":"f642b9ceac262cb223aba57406483c7f33935484f6b0e68d3a95fe0667435e23"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5983ac728aff617ab2432f00c79d90b58de626a25e1b55a4724bc2fe00e9a6e8","downloaded_from":"2026-09-09T23:04:31.551Z","last_downloaded_at":"2026-09-09T23:04:31.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483609","source_sha256":"f642b9ceac262cb223aba57406483c7f33935484f6b0e68d3a95fe0667435e23"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:339f9db5c6b81cb8e5294da31d2351669f31dff2bc56e83c617d57a18ac3f3ae","downloaded_from":"2026-09-09T23:04:31.551Z","last_downloaded_at":"2026-09-09T23:04:31.551Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483609","source_sha256":"f642b9ceac262cb223aba57406483c7f33935484f6b0e68d3a95fe0667435e23"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"220-30-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides presentation and disclosure guidance for <a href=\"/glossary/b/#business-interruption-insurance\" class=\"term\" title=\"Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.\"><span>business interruption insurance</span></a>.</div></div>","snippet":"This Subtopic provides presentation and disclosure guidance for business interruption insurance.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1c16b45eda21434944edc250bab7be3cb054354f5612bd0b0cc2f9a281302d61","downloaded_from":"2026-09-09T23:04:34.795Z","last_downloaded_at":"2026-09-09T23:04:34.795Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483608","source_sha256":"94106eae8f7041c86239d95f9ab8879dcf2ad3f0e82e2b1214af484771948b9f"}},{"citation":"220-30-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_71EB0541-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The types of costs and losses covered by business interruption insurance typically include the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_71EB075E-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"><a href=\"/glossary/g/#gross-margin\" class=\"term\" title=\"The excess of sales over cost of goods sold. Gross margin does not consider all operating expenses.\"><span>Gross margin</span></a> that was lost or not earned due to the suspension of normal operations </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_71EB0922-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">A portion of fixed charges and expenses in relation to that lost gross margin </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_71EB0AFF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Other expenses incurred to reduce the loss from business interruption (for example, rent of temporary facilities and equipment, use of subcontractors, and so forth). </span></span></div></li></ol></div></div>","snippet":"The types of costs and losses covered by business interruption insurance typically include the following:\n(a) Gross margin that was lost or not earned due to the suspension of normal operations\n(b) A portion of fixed cha…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88eac3b49b302f106ba100babffae12df20584f29f081e9e84bcccd9372f112a","downloaded_from":"2026-09-09T23:04:34.795Z","last_downloaded_at":"2026-09-09T23:04:34.795Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483608","source_sha256":"94106eae8f7041c86239d95f9ab8879dcf2ad3f0e82e2b1214af484771948b9f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a8490d0e85a0e245790896be3a8f5d7bdada55de6d9c3994b124bb57bfef301d","downloaded_from":"2026-09-09T23:04:34.795Z","last_downloaded_at":"2026-09-09T23:04:34.795Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483608","source_sha256":"94106eae8f7041c86239d95f9ab8879dcf2ad3f0e82e2b1214af484771948b9f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84068a31685e277e211f531dc9e39a5c88f4e31cade2426d2aba6502e55c2c50","downloaded_from":"2026-09-09T23:04:34.795Z","last_downloaded_at":"2026-09-09T23:04:34.795Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483608","source_sha256":"94106eae8f7041c86239d95f9ab8879dcf2ad3f0e82e2b1214af484771948b9f"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"220-30-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-1905F2E6-B102-46C2-BDD9-8FD51EF0C03A.ditamap\" class=\"ditamap\">220-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 220-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2ae8c67b0a9bee2bc282cdcaa210a039163636a0ee071bf6e8a0f0eefd250340","downloaded_from":"2026-09-09T23:04:38.881Z","last_downloaded_at":"2026-09-09T23:04:38.881Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483606","source_sha256":"41ec7f457a4e3d09854d96bae14b67c0ecd7571f05d587438fb5641e8f242cba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4bde33d8d124acb06494fb565d2529a359ec0dfe2e1d8318204c836f4e336333","downloaded_from":"2026-09-09T23:04:38.881Z","last_downloaded_at":"2026-09-09T23:04:38.881Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483606","source_sha256":"41ec7f457a4e3d09854d96bae14b67c0ecd7571f05d587438fb5641e8f242cba"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09d735ebf9f09cf915eb60b20275e5f0f79fcd9542ed053cf6c4faa841015c43","downloaded_from":"2026-09-09T23:04:38.881Z","last_downloaded_at":"2026-09-09T23:04:38.881Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483606","source_sha256":"41ec7f457a4e3d09854d96bae14b67c0ecd7571f05d587438fb5641e8f242cba"}},{"number":"45","label":"45 Other Presentation Matters","anchor":"45-other-presentation-matters","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"220-30-45-1","para":"45-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_71FF58B7-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An entity may choose how to classify <a href=\"/glossary/b/#business-interruption-insurance\" class=\"term\" title=\"Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.\"><span>business interruption insurance</span></a> recoveries in the statement of operations, as long as that classification is not contrary to existing generally accepted accounting principles (GAAP). </span></span></div></div>","snippet":"An entity may choose how to classify business interruption insurance recoveries in the statement of operations, as long as that classification is not contrary to existing generally accepted accounting principles (GAAP).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d6896045fb38f7e7a18c96caec023f1e6811625a8ca86d44ae8558546a1ca356","downloaded_from":"2026-09-09T23:04:45.505Z","last_downloaded_at":"2026-09-09T23:04:45.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483604","source_sha256":"37c4815b8faed7c5a7613c9245ebe2cabe698c2448959b11a3acf4f337adeb6e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6eb6107844fb8e673c90d8c1ca856ba1ff1e103402b495b4575cd8568a7c6715","downloaded_from":"2026-09-09T23:04:45.505Z","last_downloaded_at":"2026-09-09T23:04:45.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483604","source_sha256":"37c4815b8faed7c5a7613c9245ebe2cabe698c2448959b11a3acf4f337adeb6e"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7bad6a931d179401e539e6055772de0a27fb3395c29968241bbe3747e656e47","downloaded_from":"2026-09-09T23:04:45.505Z","last_downloaded_at":"2026-09-09T23:04:45.505Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483604","source_sha256":"37c4815b8faed7c5a7613c9245ebe2cabe698c2448959b11a3acf4f337adeb6e"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"220-30-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_720A18FF-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The following information shall be disclosed in the notes to financial statements in the period(s) in which <a href=\"/glossary/b/#business-interruption-insurance\" class=\"term\" title=\"Insurance that provides coverage if business operations are suspended due to the loss of use of property and equipment resulting from a covered cause of loss. Business interruption insurance coverage generally provides for reimbursement of certain costs and losses incurred during the reasonable period required to rebuild, repair, or replace the damaged property.\"><span>business interruption insurance</span></a> recoveries are recognized: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_720A1A19-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The nature of the event resulting in business interruption losses </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_720A1B05-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The aggregate amount of business interruption insurance recoveries recognized during the period and the line item(s) in the statement of operations in which those recoveries are classified. </span></span></div></li></ol></div></div>","snippet":"The following information shall be disclosed in the notes to financial statements in the period(s) in which business interruption insurance recoveries are recognized:\n(a) The nature of the event resulting in business int…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c8f17391fdf4c38668d6f71e713ad511b01144db187dc998577e3843f2752840","downloaded_from":"2026-09-09T23:04:47.526Z","last_downloaded_at":"2026-09-09T23:04:47.526Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483605","source_sha256":"8a15a649eb7975adbc406079d71ea57cb99a74a7e45e052fc2c743b853a945c2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95e4eb857f50c6e039bbead34b662b30cf6e54175aed5d947b3403935e5dfbc6","downloaded_from":"2026-09-09T23:04:47.526Z","last_downloaded_at":"2026-09-09T23:04:47.526Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483605","source_sha256":"8a15a649eb7975adbc406079d71ea57cb99a74a7e45e052fc2c743b853a945c2"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b84f48bfc9f34d2d286bc7507f18977833468c4b678cddaa7d7c32b90756662","downloaded_from":"2026-09-09T23:04:47.526Z","last_downloaded_at":"2026-09-09T23:04:47.526Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147483605","source_sha256":"8a15a649eb7975adbc406079d71ea57cb99a74a7e45e052fc2c743b853a945c2"}}],"enrichment":{"summary":"ASC 220-30 governs how an entity presents and discloses recoveries under business interruption insurance — insurance covering lost gross margin, a portion of fixed charges and expenses related to that lost margin, and extra expenses incurred to mitigate the interruption loss. The core rule is permissive on presentation: an entity may choose any classification of the recoveries in the statement of operations so long as it is not contrary to existing GAAP (220-30-45-1). In exchange for that flexibility, the Subtopic mandates note disclosure of the event and the amount and location of recoveries recognized.","key_points":["The Subtopic provides only presentation and disclosure guidance for business interruption insurance; it does not establish recognition or measurement rules (220-30-05-1).","Covered costs and losses typically include lost or unearned gross margin, a portion of fixed charges and expenses related to that lost gross margin, and other expenses incurred to reduce the interruption loss such as temporary facilities, equipment rent, and subcontractors (220-30-05-2).","Scope follows the Overall Subtopic, Section 220-10-15 (220-30-15-1).","An entity may choose how to classify business interruption insurance recoveries in the statement of operations, provided the classification is not contrary to existing GAAP (220-30-45-1).","In each period recoveries are recognized, the notes must disclose the nature of the event causing the business interruption losses (220-30-50-1(a)).","The notes must also disclose the aggregate amount of recoveries recognized during the period and the statement of operations line item(s) in which they are classified (220-30-50-1(b))."],"categories":["Presentation","Disclosure","Financial statement presentation","Contingencies and guarantees"],"audience_level":"introductory","student_note":"Exam traps center on the fact that this Subtopic gives a free choice of income statement line (it does not force extraordinary or \"other income\" treatment), but that freedom is conditioned on not violating other GAAP and on making the required disclosures. Students also wrongly assume ASC 220-30 tells you when to recognize a recovery — recognition of the insurance receivable/gain comes from other guidance (e.g., gain contingency rules), not here.","related_topics":["220-10","450-30","610-30","225-20"],"key_concepts":["business interruption insurance","insurance recoveries","lost gross margin","fixed charges and expenses","income statement classification","note disclosure","extra expenses to mitigate loss"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b0f910430c85ea91016b14654d7606c9a3e99b30b8c21182dd2de6cbd7f39b81","downloaded_from":"2026-09-09T23:04:31.551Z","last_downloaded_at":"2026-09-09T23:04:49.642Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"225-30","title":"Business Interruption 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