AICPA Technical Practice Aid Addresses Natural Disasters
September 21, 2005
In response to Hurricane Katrina, the American Institute of Certified Public Accountants (AICPA) issued Technical Practice Aid 5400.05 on September 12. The aid identifies certain issues that may arise in accounting for losses from natural disasters and lists relevant accounting literature for nongovernmental entities to consider in addressing those financial reporting issues.
The aid points practitioners to literature and guidance for recognizing, measuring, and disclosing losses from natural disasters. The relevant accounting literature is organized around the following series of questions that might arise when considering accounting losses incurred as a result of a natural disaster:
- How should losses from a natural disaster of a type that is reasonably expected to reoccur be classified in the statement of operations?
- When should an asset impairment loss related to a natural disaster be recognized?
- When should a liability for non-impairment losses and costs related to a natural disaster be recognized?
- What is the accounting for insurance recoveries to cover losses sustained in a natural disaster?
- What are the additional considerations related to business interruption insurance recoveries?
- What are the required disclosures regarding the impact of a natural disaster?
The technical practice aid is available at www.aicpa.org.
NACUBO staff resource: Sue Menditto, director, accounting policy.
- NACUBO Statement on Endowment Inquiry
- NACUBO Urges One-Year Postponement of Changes to 1098-T Reporting Requirements
- GASB Addresses Asset Retirement Obligations and Seeks Field Testers
- 2016 Higher Education Accounting Forum
April 10-12, 2016
- 2016 CAO and CBO Collaborations
August 1-2, 2016
- 2016 Planning and Budgeting Forum
September 19-20, 2016
- WEBCAST: Legislative Lunchcast: A 30-Minute Washington Update from NACUBO
Monday, February 22, 2016 12:00pm ET
- WEBCAST: Responsibility Center Management: Two Different Perspectives
Thursday, March 17, 2016 1:00PM ET
- WEBCAST: Title IX: Key Issues Surrounding Institutional Compliance
Wednesday, April 20, 2016 1:00PM ET
- WEBCAST: The Clery Act: Strategic Planning to Mitigate Institutional Risk
Thursday, May 26, 2016 1:00PM ET
- ON-DEMAND: NACUBO Live! Results of the 2015 NACUBO-Commonfund Study of Endowments
- A Guide to College and University Budgeting: Foundations for Institutional Effectiveness, 4th ed. - by Larry Goldstein
- NACUBO's Guide to Unitizing Investment Pools - by Mary S. Wheeler
- Managing and Collecting Student Accounts and Loans - by David R. Glezerman and Dennis DeSantis