Entities impacted by the floods before the reporting date, need to consider key accounting issues arising out of the floods, including the accounting for:
- items of property, plant and equipment (PP&E) and inventory damaged or destroyed in the floods
- compensation rights for damaged or destroyed items of PP&E, inventory and lost revenue/profits resulting from the floods
- costs of restoring, purchasing or constructing new items of PP&E
- other considerations including the need to recognise provisions for onerous contracts, the potential for breaching loan covenants, the accounting for future losses, clean up costs, impact on hedge accounting and going concern assessments.