ASC

ASC 225-30

Business Interruption Insurance

225 Income Statement

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In brief

IntroductoryPresentationFinancial statement presentationDisclosureTransition and effective dates

ASC 225-30 formerly addressed how to present and disclose business interruption insurance recoveries in the income statement. All of its content (Sections 05, 15, 45, and 50) was superseded by Maintenance Update 2017-19, so the subtopic is now an empty shell with no operative guidance. Entities receiving business interruption insurance proceeds must look to other guidance, such as the successor guidance in ASC 220-30 and general gain contingency rules.

Key points (4)
  • Every paragraph of ASC 225-30 (225-30-05-1, 225-30-05-2, 225-30-15-1, 225-30-45-1, and 225-30-50-1) was superseded by Maintenance Update 2017-19.
  • Because no substantive text remains, ASC 225-30 imposes no recognition, presentation, or disclosure requirements on its own.
  • The former guidance permitted an entity freedom in classifying business interruption insurance recoveries in the income statement, provided the classification was not contrary to other GAAP; that content now resides outside this subtopic.
  • Researchers should treat the Topic 225 series as legacy and consult the recodified Income Statement—Reporting Comprehensive Income topics (ASC 220, including 220-30) for current business interruption insurance guidance.

For students. The practical lesson here is codification navigation: an entire subtopic can be emptied by a Maintenance Update, so a citation to ASC 225-30 today is a citation to nothing. Students often mistakenly cite the old business interruption insurance rules without checking that the content moved to the ASC 220 income statement topics.

business interruption insuranceinsurance recoveriessuperseded guidanceincome statement classificationgain contingency

Machine-generated study aid for ASC 225-30. Check the source paragraphs below.

225-30-00Status

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225-30-00-1
The following table identifies the changes made to this Subtopic.
Paragraph Action Accounting Standards Update Date
Business Interruption Insurance Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
Gross Margin Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-30-05-1 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-30-05-2 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-30-15-1 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-30-45-1 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-30-45-1 Amended Accounting Standards Update No. 2015-01 01/09/2015
225-30-50-1 Superseded Maintenance Update 2017-19 (PDF) 11/15/2017
225-30-50-1 Amended Accounting Standards Update No. 2015-01 01/09/2015

225-30-05Overview and Background

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225-30-15Scope and Scope Exceptions

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225-30-20Glossary

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225-30-45Other Presentation Matters

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225-30-50Disclosure

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