# ASC 220-30: Income Statement—Reporting Comprehensive Income — Business Interruption Insurance Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/220/30/) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T23:04:31.551Z to 2026-09-09T23:04:49.642Z Record version: sha256:cf3d091c15d28685be04f1b37057a65b2574182d597700faa646eec0a8e82a36 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30: Income Statement—Reporting Comprehensive Income — Business Interruption Insurance ### Machine-generated study aids ```json { "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" ] } ``` Source downloaded (UTC): 2026-09-09T23:04:31.551Z to 2026-09-09T23:04:31.551Z Record version: sha256:339f9db5c6b81cb8e5294da31d2351669f31dff2bc56e83c617d57a18ac3f3ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/220/30/#00-status) SEC content: no ##### [220-30-00-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:31.551Z to 2026-09-09T23:04:31.551Z Record version: sha256:868ee0b0f8b6dda5e8fa4397e54745c581e307965790741e3b87f7041c20b7cd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Business Interruption InsuranceAddedMaintenance Update 2017-19 (PDF)11/15/2017
Gross MarginAddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-05-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-05-2AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-15-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-45-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
220-30-50-1AddedMaintenance Update 2017-19 (PDF)11/15/2017
Source downloaded (UTC): 2026-09-09T23:04:34.795Z to 2026-09-09T23:04:34.795Z Record version: sha256:84068a31685e277e211f531dc9e39a5c88f4e31cade2426d2aba6502e55c2c50 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/220/30/#05-overview-and-background) SEC content: no ##### [220-30-05-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:34.795Z to 2026-09-09T23:04:34.795Z Record version: sha256:1c16b45eda21434944edc250bab7be3cb054354f5612bd0b0cc2f9a281302d61 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides presentation and disclosure guidance for [business interruption insurance](https://asc.understandingaccounting.org/glossary/b/#business-interruption-insurance "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."). ##### [220-30-05-2](https://asc.understandingaccounting.org/asc/220/30/#220-30-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:34.795Z to 2026-09-09T23:04:34.795Z Record version: sha256:88eac3b49b302f106ba100babffae12df20584f29f081e9e84bcccd9372f112a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The types of costs and losses covered by business interruption insurance typically include the following: 1. a [Gross margin](https://asc.understandingaccounting.org/glossary/g/#gross-margin "The excess of sales over cost of goods sold. Gross margin does not consider all operating expenses.") that was lost or not earned due to the suspension of normal operations 2. b A portion of fixed charges and expenses in relation to that lost gross margin 3. c Other expenses incurred to reduce the loss from business interruption (for example, rent of temporary facilities and equipment, use of subcontractors, and so forth). Source downloaded (UTC): 2026-09-09T23:04:38.881Z to 2026-09-09T23:04:38.881Z Record version: sha256:09d735ebf9f09cf915eb60b20275e5f0f79fcd9542ed053cf6c4faa841015c43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/220/30/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [220-30-15-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:38.881Z to 2026-09-09T23:04:38.881Z Record version: sha256:2ae8c67b0a9bee2bc282cdcaa210a039163636a0ee071bf6e8a0f0eefd250340 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 220-10-15. Source downloaded (UTC): 2026-09-09T23:04:45.505Z to 2026-09-09T23:04:45.505Z Record version: sha256:d7bad6a931d179401e539e6055772de0a27fb3395c29968241bbe3747e656e47 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/220/30/#45-other-presentation-matters) SEC content: no ##### [220-30-45-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:45.505Z to 2026-09-09T23:04:45.505Z Record version: sha256:d6896045fb38f7e7a18c96caec023f1e6811625a8ca86d44ae8558546a1ca356 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity may choose how to classify [business interruption insurance](https://asc.understandingaccounting.org/glossary/b/#business-interruption-insurance "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.") recoveries in the statement of operations, as long as that classification is not contrary to existing generally accepted accounting principles (GAAP). Source downloaded (UTC): 2026-09-09T23:04:47.526Z to 2026-09-09T23:04:47.526Z Record version: sha256:2b84f48bfc9f34d2d286bc7507f18977833468c4b678cddaa7d7c32b90756662 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 220-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/220/30/#50-disclosure) SEC content: no ##### [220-30-50-1](https://asc.understandingaccounting.org/asc/220/30/#220-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:04:47.526Z to 2026-09-09T23:04:47.526Z Record version: sha256:c8f17391fdf4c38668d6f71e713ad511b01144db187dc998577e3843f2752840 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following information shall be disclosed in the notes to financial statements in the period(s) in which [business interruption insurance](https://asc.understandingaccounting.org/glossary/b/#business-interruption-insurance "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.") recoveries are recognized: 1. a The nature of the event resulting in business interruption losses 2. b 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.