Hot Topic | April 2020

 

Insight

Recognizing insurance claims related to COVID-19

Guidance on when to recognize insurance recoveries, as well as measurement, presentation and disclosure requirements.

Valerie Boissou

Valerie Boissou

Partner, Dept. of Professional Practice, KPMG US

+1 212-954-1723

Rika Tanaka

Rika Tanaka

Managing Director, Dept. of Professional Practice, KPMG US

+1 212-954-6291

Companies may hold business interruption, event cancellation or workers' compensation insurance policies. KPMG highlights when insurance recoveries can be recognized, as well as measurement, presentation and disclosure guidance.

Applicability

  • All companies 

Relevant dates

  • Effective immediately

Key impacts

  • Not all insurance policies may cover COVID-19 related losses and costs. 
  • Insurance recoveries are recognized only when specific criteria have been met, which can be as late as when the claim is settled.

Report contents

  • Background
  • Understand policy coverage
  • Determine when to recognize recoveries and gains
  • Other accounting considerations

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