Statement on asset impairment and insurance recoveries.

• Position: GASB News - Brief Article

GASB has published Statement No. 42, Accounting and Financial Reporting for Impairment of Capital Assets and for Insurance Recoveries, requiring governments to report the effects of capital asset impairment in financial statements.

The new statement also requires all governments to account for insurance recoveries in the same manner.

Effective for fiscal years beginning after Dec. 15, 2004, the statement requires governments to assess major events--including...