Damage to Company Assets : Method of Accounting for the Negative Event and any Insurance Compensation

International Journal of Economics and Management Studies
© 2023 by SSRG - IJEMS Journal
Volume 10 Issue 4
Year of Publication : 2023
Authors : Maria Silvia Avi
pdf
How to Cite?

Maria Silvia Avi, "Damage to Company Assets : Method of Accounting for the Negative Event and any Insurance Compensation," SSRG International Journal of Economics and Management Studies, vol. 10,  no. 4, pp. 14-20, 2023. Crossref, https://doi.org/10.14445/23939125/IJEMS-V10I4P102

Abstract:

The damage to the company's assets may concern products belonging to the company's inventories or multi-year tangible assets. Depending on the type of assets, the accounting recognition is profoundly different. As will be seen on the following pages, no particular problems arise concerning insurance compensation since compensation may be recognised when the receivable from the insurance company occurs in legal terms. The receivable can only be realised if it is quantitatively determined. This is never a problem since such a claim is established by the insurance contract signed by the company and the insurance company and by an expert's report assessing the damage suffered by the asset.

Keywords:

Loss of assets, Damage to company assets, Insurance compensations

References:

[1] Arthur Harris Adelber “A Methodology for Measuring the Understandability of Financial Report Messages,” Journal of Accounting Research ,vol. 17, no. 2, pp. 565-592.
[CrossRef] [Google Scholar] [Publisher Link]
[2] Arthur Harris Adelberg, “The Accounting Syntactic Complexity formula: A New Instrument for Predicting the Readability of Selected Accounting Communications,” Accounting and Business Research, vol. 13, no. 51, pp. 162-175, 1983.
[CrossRef] [Google Scholar] [Publisher Link]
[3] Arthur Harris Adelberg, and Joseph R. Razek, “The Cloze Procedure: A Methodology for Determining the Understandability of Accounting Textbooks,” The Accounting Review, vol. 59, no. 1, pp. 109-122, 1984.
[Google Scholar] [Publisher Link]
[4] David Alexander, and Eva Jermakowicz, “A True and Fair View of the Principles/Rules Debate,” Abacus, vol. 42, no. 2, pp. 132- 164, 2006.
[CrossRef] [Google Scholar] [Publisher Link]
[5] David Alexander, and Christopher Nobes, Financial Accounting: An International Introduction, 7th edition, Pearson.
[Publisher Link]
[6] Maria Silvia Avi, “Understandability in Italian Financial Reporting and Jail: A Link Lived Dangerously,” European Journal of Economics, Finance, & Administrative Science, vol. 99, pp.30-41, 2018.
[Google Scholar]
[7] Ballwieser W., et al., Agency theory, Information, and Incentives, Springer Science & Business Media.
[Google Scholar]
[8] Deatherage R.H., Security on a Budget, in Security Operations, Taylor and Francis Group.
[9] Pascale Delvaille, Gabi Ebbers, and Chiara Saccon, “International Financial Reporting Convergence: Evidence From Three Continental European Countries,” Accounting in Europe, vol. 2, no. 1, pp. 137–164, 2005.
[CrossRef] [Google Scholar] [Publisher Link]
[10] Christine H. Doxey, The Controller’s Toolkit, Wiley, p. 544, 2021.
[Publisher Link]
[11] Bo-Göran Ekholm, and Jan Wallin “The Impact of Uncertainty and Strategy on the Perceived Usefulness of Fixed and Flexible Budgets,” Journal of Business Finance and Accounting, vol. 38, no. 1, pp. 145-164, 2011.
[CrossRef] [Google Scholar] [Publisher Link]
[12] Epstein, M.J., Manzoni, J-F, and Dávila, A, Performance Measurement and Management Control: Innovative Concepts and Practices, Emerald Group Publishing Limited, vol. 20, 2010.
[CrossRef] [Google Scholar] [Publisher Link]
[13] Marc J. Epstein, Jean-Francois Manzoni, and Marc J. Epstein, Performance Measurement and Management Control : Superior Organizational Performance, Studies in Managerial and Financial Accounting, Emerald Books, vol. 14, p. 462, 2004.
[Publisher Link]
[14] Gharairi A.M, “Management Control and Performance,” International Journal of Management, vol. 11, no. 10, pp. 2013-2023, 2020. [15] Peter Walton, Axel Haller, and Bernard Raffournier, International Accounting. . 2nd edition. London: Thomson Learning, 2003.
[Google Scholar] [Publisher Link]
[16] Christopher S. Chapman et al., Handbook of Management Accounting Research, Elsevier, 1st edition, vol. 1, 2006.
[Google Scholar] [Publisher Link]
[17] Christopher S. Chapman, Anthony G. Hopwood, and Michael D. Shields, Handbook of Management Accounting Research. vol. 2, Elsevier.
[Publisher Link]
[18] Horngren, C.T., Sundem, G.L., and Stratton, W.O., Introduction to Management Accounting, Pearson, 2013.
[19] Jon-Arild Johannessen, Continuous Change and Communication in Knowledge Management, Emerald Publishing, p. 152, 2021.
[Google Scholar] [Publisher Link]
[20] Roman Lewandowski, Anatoliy G. Goncharuk, and Jarosław J. FedorowskiIdeology, Trust, and Spirituality: A Framework for Management Control Research in Industry 4.0 Era, The Future of Management Industriy 4.0 and Digitalization, no. 1, pp. 72-91, 2021,
[Google Scholar] [Publisher Link]
[21] Bill Katz, The Acquisition Budget, Routledge, 1989.
[Google Scholar]
[22] Gerald Miller, W. Bartley Hildreth, and Jack Rabin, Performance-Based Budgeting, Routledge,
[Google Scholar] [Publisher Link]
[23] Henry Mintzberg, and James A. Waters, “Of Strategies, Deliberate and Emergent,” Strategic Management Studies Jouurnal, vol. 6, no. 1, pp. 157-172, 1985.
[CrossRef] [Google Scholar] [Publisher Link]
[24] Anna Maria Moisello, “ABC:Evolution, Problems of Implementation and Organizational Variable,” American Journal of Industrial and Business Management, vol. 2, no. 2, pp. 55-63, 2012.
[CrossRef] [Google Scholar] [Publisher Link]
[25] Christopher Nobes, and Robert B Parker, Comparative International Accounting, Pearson, 2016.
[Publisher Link]
[26] Ahmad N. Obaidat, “Accounting Information Qualitative Characteristics Gap: Evidence From Jordan,” International Management Review vol. 3 no. 2, pp. 26-32
[Google Scholar]
[27] Schrock, The Good and the Bad News About Quality, CRC Press, 1988.
[Google Scholar]
[28] Simons, R.S, Levers of Control, Harvard Business School Press.
[29] Nancy Slight-Gibney et al., Budgeting Lesson and Stories, Growth, Creativity and Collaboration: Great Vision on a Great Lake, p. 7, 2006.
[Google Scholar] [Publisher Link]
[30] Mariko Smith, Who Controls the Past, Controls the Future', Public History Review, vol. 28, pp. 1-12, 2021.
[Google Scholar] [Publisher Link]
[31] Jaroslav Wagner et al., “Usefulness of the Budget: the, Mediating Effect of Participative Budgeting and Budget-Based Evaluation and Rewarding,” Baltic Journal of Management, vol. 16, no. 4, pp. 602-620, 2021.
[CrossRef] [Google Scholar] [Publisher Link]
[32] Barney L. Capehart, and Lynne C. Capehart, Web Based Energy Information and Control Systems, River Publisher, 2021.
[Google Scholar] [Publisher Link]
[33] Aaron Wildavsky, Budgeting and Governing, Routledge
[Publisher Link]
[34] Stephen A. Zeff, “The Objectives of Financial Reporting: A Historical Survey and Analysis,” Journal of Accounting and Business Research , vol. 43, no. 4, pp. 262-327, 2013.
[CrossRef] [Google Scholar] [Publisher Link]
[35] Kristi Yuthas, Rodney Rogers, and Jesse F. Dillard, “Communicative Action and Corporate Annual Reports,” Journal of Business Ethics, vol. 41, no. 1–2, pp. 141–157, 2002.
[CrossRef] [Google Scholar] [Publisher Link]