Cash-Flow Reporting Practices for Insurance Proceeds Related to PP&E

dc.contributor.author Mulford, Charles W.
dc.contributor.author Ely, Michael L.
dc.contributor.author Patel, Amit
dc.contributor.author Martins, Mario
dc.contributor.corporatename Georgia Institute of Technology. College of Management en_US
dc.contributor.corporatename Georgia Institute of Technology. Financial Analysis Lab en_US
dc.date.accessioned 2006-06-20T20:23:07Z
dc.date.available 2006-06-20T20:23:07Z
dc.date.issued 2005-06
dc.description.abstract According to SFAS No. 95, Statement of Cash Flows, insurance settlement proceeds received that are directly related to investing activities such as the destruction of a building or damage sustained by equipment are to be reported as investing cash flow. Proceeds received from insurance settlements related to property, plant, or equipment are analogous to proceeds received from the sale or disposal of property, plant, or equipment, and hence, should be afforded similar treatment, as investing cash flow. Companies, however, differ in their treatment of such insurance proceeds. Some companies report them as investing cash flow while others report such cash flows as operating cash flow, potentially distorting cross-company comparisons. Overstatements of operating cash flow can arise when PP&E-related insurance proceeds are included. In this study, we highlight the cash flow reporting practices for insurance proceeds related to property, plant, and equipment and detail the inconsistencies noted. en
dc.format.extent 147624 bytes
dc.format.mimetype application/pdf
dc.identifier.uri http://hdl.handle.net/1853/10670
dc.language.iso en_US en
dc.publisher Georgia Institute of Technology en
dc.title Cash-Flow Reporting Practices for Insurance Proceeds Related to PP&E en
dc.type Text
dc.type.genre Technical Report
dspace.entity.type Publication
local.contributor.corporatename Scheller College of Business
relation.isOrgUnitOfPublication a2f83831-ae41-4d65-82ff-c8bf95db4ffb
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