Dataline
A look at current financial reporting issues No. 2012-17
November 12, 2012
What’s inside:
Overview .......................... 1
SEC filing deadlines ........ 1
Financial statement disclosure ......................2
Income statement classification of losses..............................2 Insurance .........................3
Asset impairments .......... 5
Non-impairment
costs ............................... 7
Debt and liquidity issues ........................... 8
Tax considerations ..........9
Derivative and hedging considerations ..............9
Subsequent events ........ 10
Internal control implications ................ 10
Questions ....................... 11

Accounting and disclosure implications of
Hurricane Sandy
Overview


On October 29, 2012 Hurricane Sandy, one of the largest Atlantic hurricanes on record, came ashore in the U.S. When the storm made landfall it was no longer categorized as a hurricane (it was categorized as a post-tropical cyclone), which may affect companies' insurance claims.



Hurricane Sandy caused wide-spread flooding and wind damage across the midAtlantic, including lower Manhattan. This resulted in prolonged power outages, disruption of public transportation, and gasoline shortages from Virginia to New
Hampshire. The most severe damage and disruption occurred in New York and New
Jersey.



Hurricane Sandy is expected to be the second-costliest Atlantic hurricane in history, only surpassed by Hurricane Katrina in 2005. Many businesses were disrupted by
Hurricane Sandy and its aftermath including the New York Stock Exchange, which was closed for two days.



While not all-inclusive, this Dataline discusses several accounting and disclosurerelated matters companies may encounter in dealing with the financial reporting implications of Hurricane Sandy. Links to additional