Case 13-06 Natural Irony: Accounting Considerations When There Is a Natural Disaster

New and exsisting polices are put onto the school website for staff and parents to read through.Policies are important for the school to run effectively following goverment guidlines,they are important for Teachers ,students, parents so they can feel comfortable that theses are in place so there child is being taught in a safe caring environment.Teachers need to know that theses are in place for them to be able to teach in a school were they are covered are in there working enviorment e.g wage Policy ,Health and Safty, discrimination Policy ect. There is Daily e-mail to all staff each morning. The e-mail will highlight important events, remind you of tasks,and meetings.

Who pays for all these damages? People who live in hurricane prone areas obviously have insurance to fall back on when these disasters strike. It turns out that insurance companies also have insurance for instances like this. When insurance companies get stuck paying out large sums of money to a lot of people, they occasionally need a little help and

Policies are documents within the work place put together, influenced by law, by the manager. The policy will be designed around an area of practice that needs to be evidenced as being in line with law. The document gives a list of procedures for carrying out the task required,

In a childcare setting these are the policies and procedures that I have looked at: Nappy changing policy and procedure, positive behaviour policy and procedure, supervision of children on outings and visits policy and procedure, safeguarding children and child protection policy and procedure, information sharing policy and procedure, whistle blowing policy and procedure.

In an established educational setting new staff will be regularly informed of current policies and procedures, this is to ensure best practice for child and practitioner. Policies may include:

If this hypothetical natural disaster actually did occur, there are certain accounting considerations WWA would have to assess in determining the edits needed on their consolidated financial reports to disclose relevant information, or else they would be material misstated. This disaster would be a subsequent event, according to ASC 855-10-25-1, where the event happens after the balance sheet date of the subsidiaries, but before the financials are issued in the consolidated statements. WWA would classify this as recognized subsequent event because it occurs before its own balance sheet date. The financial impact will be presented in both the balance sheet and income statement after the damaged assets have been tested for recoverability because in this case there was a significant adverse change in the asset’s physical condition (ASC 360-10-35-21). Since NS Wave’s 9 power generators were destroyed and Kahuku Wind’s 12 wind turbines have irreparable damage, these assets are deemed non recoverable and must be written off as a loss (ASC 360-10-35-17). Insurance proceeds may offset this loss and whether the assets are insured should be disclosed because a gain from this contingency may arise. ASC 450-30-25-1 states that gains should be recognized when earned which may

Subject: Haig Simmons – Loss recognition on anthracite coal future contracts, capital or ordinary loss

We have a policies book in our setting that everyone has to follow, all policies should be available to those who need to know the basis and they may be shared with colleagues, carers and other settings if needed

Case 12-02 To Recognize or Not to Recognize, That Is the Question Shakespeare Inc. (“Shakespeare” or the “Company”) is a privately held book printing and publishing company with a December 31 year-end. The summary balance sheet as of December 31, 2010, included: Current assets Noncurrent assets Total assets Current liabilities Noncurrent liabilities Total liabilities Total shareholder equity $ 6,500,000 28,250,000 $34,750,000 $ 4,500,000 13,750,000 $18,250,000 $16,500,000

Adams and Kostel, the authors, discuss the causes of the disasters and ways to minimize the effects of these type of disasters. The authors use physical data to help readers visualize the..causes..In...text..it..states,.“Total losses exceeded $150 billion.” The authors use monetary data to show the devastating effects of the hurricane.

Thank you for your response. Whenever a crisis hits an organization, not even the best business insurance can fully compensate for the loss. So after the horrific events of 911, human resource and risk management departments (Washington DC adjacent companies) acknowledged the need for continuity /disaster recovery plans. In many cases, insurance carriers required a written continuity /disaster recovery plan on file for continued coverage.

It is critical to understand that the transaction events which give rise to timing differences are economic in nature and therefore have economic consequences. The question then becomes how to best reflect those economic consequences in the financial statements. Inter-period income tax allocation considers the tax consequences of transaction events such as revenue, expenses, gains, and losses and associates these items with the period in which these events are recognized. In other words, inter-period tax allocation is consistent with the basic tenets of accrual accounting. Underlying this method is the understanding that there is a direct economic relationship between identifiable transactions reflected in the financial statements and related income tax effects (Arthur et al., 1984). Therefore, each transaction has a tax effect.

In the United States, people who live in poverty are already one of the most vulnerable populations and it is this population that is heavily impacted by public policy relating to natural disasters. Often, public policies relating to disaster preparedness and recovery are not discussed until after a natural disaster takes place which is too late to do any good for the people affected and who are devastated almost beyond comprehension. The role of government in disaster preparedness and recovery became a “hot button” issue especially after Hurricane Katrina when the federal and local governments seemed to protect/help those who already had resources and not those with little to no resources. According to a Gallup Poll by Jones & Carroll (2005), forty-nine percent of respondents said that FEMA was most helpful to them while thirty-one percent of respondents said that nothing was helpful to them during recovery from Hurricane Katrina. This information indicates that there is a gap in services disaster relief policies and programs that needs to be filled.

Disasters have become an inevitable part of businesses and organizations as well. They not only have a major effect on business and organizational continuity; they also result to an overhaul in organizational operational mechanisms (Awasthy, 2009). It is for this reason that many organizations and business resort to preparing business continuity plans and disaster recovery plans that will facilitate better disaster management in future. Effective disaster recovery plans are important to every business and organization (Thejendra, 2008).

Natural disasters have never been an issue for me in the twenty years I have been living in Florida. There have always been the threats of dangerous hurricanes living near the coast, but I never took them seriously. I always thought " they're just little storms, what's the worst that could happen?". I was so naive to think that way.