Assets lost on fire - Treatment in account

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 September 2010 What should be the treatment for assets lost in fire. They have insurance of above assets but insurance company is not finalised claim. So what should be the treatment for the loss in current year.

Kindly guide me some material for same problem.

CA SMR

CA SMR (Expert)
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08 September 2010 The WDV of this fixed asset lost in fire to be written off and the difference between the insurance claim and the WDV to be shown as loss /gain of disposal, as the case may be.

Querist : Anonymous

Querist : Anonymous (Querist)

08 September 2010 I dont know the claim amount so what should I do in current year? I am asking about last year fire loss?
So what should be the treatment?

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CA SMR

CA SMR (Expert)
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08 September 2010 You can wait for the insurance claim and then account for the loss.There is still 6 more months to go for the FY to end.

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2010 I am asking about this query for the last year 2009- 10 so what should be the treatment as on 31.3.10

Querist : Anonymous

Querist : Anonymous (Querist)

10 September 2010 what provision shold i made for loss and what should be the treatement for expenses incurred and which will refunded by insurance company?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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11 September 2010 I would like to suggest, you can take proportionate calculation of loss or take private valuer to value the loss and consider in the books of accounts, and in the notes you can provide the fact of claim not finalised by the Insurance company. incase any plus or minus in the claim the same can be considred in the following year