Dataline: Accounting and disclosure implications of Hurricane Sandy (No. 2012-17)

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Dataline / In depth 11/12/2012 by Assurance services
Dataline: Accounting and disclosure implications of Hurricane Sandy (No. 2012-17)

At a glance

Hurricane Sandy is expected to be the second-costliest Atlantic hurricane in history, only surpassed by Hurricane Katrina in 2005. Many businesses were disrupted by Hurricane Sandy and its aftermath including the New York Stock Exchange, which was closed for two days. While not all-inclusive, this Dataline discusses several accounting and disclosure-related matters companies may encounter in dealing with the financial reporting implications of Hurricane Sandy.

On October 29, 2012 Hurricane Sandy, one of the largest Atlantic hurricanes on record, came ashore in the U.S. When the storm made landfall it was no longer categorized as a hurricane (it was categorized as a post-tropical cyclone), which may affect companies' insurance claims.

Hurricane Sandy caused wide-spread flooding and wind damage across the mid-Atlantic, including lower Manhattan. This resulted in prolonged power outages, disruption of public transportation, and gasoline shortages from Virginia to New Hampshire. The most severe damage and disruption occurred in New York and New Jersey.

Hurricane Sandy is expected to be the second-costliest Atlantic hurricane in history, only surpassed by Hurricane Katrina in 2005. Many businesses were disrupted by Hurricane Sandy and its aftermath including the New York Stock Exchange, which was closed for two days.

While not all-inclusive, this Dataline discusses several accounting and disclosure-related matters companies may encounter in dealing with the financial reporting implications of Hurricane Sandy.