Local government – accounting for natural disasters
This guide has been developed to assist councils' with the required accounting recognition, measurement and disclosure requirements - as to how the risk is mitigated - that may arise as a result of a natural disaster, which is considered as an indicator of impairment when assets have been physically damaged and/or the ability to provide services to the local community has been affected. It addresses the need of management to assess the impact of a natural disaster on potential impairment, and, if impairment has resulted, to assist in the recognition and measurement of asset impairment in the financial statements.