lost gross margin

Presentation1

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.