Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Capital Assets

Impairment of Capital Assets and Insurance Recoveries
Insurance Recoveries

Report a payment for an insurance recovery only when it is realized and as a separate transaction from restoration or replacement of the impaired asset. If the insurance payment was not realized and will not be included in your agency’s AFR, do not include it in the impairment calculations.

For governmental fund financial statements, report a recovery as an other financing source (COBJ 3783) or as an extraordinary item (COBJ 3784). Report restoration or replacement costs either as repairs and maintenance or as capital outlay, as appropriate.

For proprietary fund financial statements and government-wide financial statements, report a recovery when it is realized or realizable in:

• The same fiscal year as the loss, and:
  • The impairment loss was reported as an extraordinary item — report the recovery as an extraordinary item (COBJ 3784).
  • The impairment loss was not reported as an extraordinary item — report the impairment loss net of any insurance recovery.
• In a fiscal year after the loss occurred, report the recovery separately:
  • On proprietary fund financial statements, report either:
    • – A non-operating revenue (COBJ 3773), or
    • – An extraordinary item (COBJ 3784)
  • On government-wide financial statements, report either
    • – Program revenue (COBJ 3773), or
    • – An extraordinary item (COBJ 3784)

For more information on the correct COBJs and roll ups to use for insurance recoveries, see Impairments and Insurance Recoveries COBJs and Roll Ups.