business interruption insurance

Presentation2

1. 220-30Business Interruption Insurance220 Income Statement—Reporting Comprehensive Income

   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.

2. 225-30Business Interruption Insurance225 Income Statement

   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 All of its content (Sections 05, 15, 45, and 50) was superseded by Maintenance Update 2017-19, so the subtopic is now an empty shell with no operative guidance.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.