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Accounting for Insurance claim check
Posted by nmjenior on 07/28/2008 - 08:23
My company had an insurance claim for a stolen laptop and we recieved the claim check recently. I have it in a misc. holding account for now, but will need to finalize its place for month end. What are my options?
Nicholas Jenior
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Generally speaking, your insurance claim check should be treated the same as if you sold the asset mid life. That is, you should compare the settlement amount against the book value at the time of theft and record the resulting gain or loss as extraordinary income/loss on the P&L statement.