ABSTRACT
This chapter considers financial statement disclosures concerning insurance cover for disasters. Insurance should be a key component of any organisations disaster preparedness and resilience. It reviews the insurance disclosures of a sample of Christchurch organisations in their financial statements for the year preceding, during and following the most significant Canterbury earthquakes. Financial statements of larger entities are prepared in accordance with legally enforced financial reporting standards, commonly referred to as International Financial Reporting Standards (IFRS). In locations where there is a high risk of natural disaster, information in financial statements relating to insurance cover for disasters can assist users to evaluate their level of involvement with the entity. Given the potential significance of insurance in reducing potential future losses, it suggests that accounting standards should require enhanced disclosure of reporting entities insurances to help users to assess how the entity has addressed the operating risks, including natural disasters that organisations face.
