Hot Topic | April 2020

 

Potential accounting and disclosure impacts of COVID-19 on insurance recoveries

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

 

Spotlight on contributors

Valerie Boissou

Valerie Boissou

Partner, Dept. of Professional Practice, KPMG US

Rika Tanaka

Rika Tanaka

Managing Director, Dept. of Professional Practice, KPMG US

 

 

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