A fire on 3 March destroys Flindouël's production site: buildings and machinery (860,000) and stored inventories (140,000). Insurance will cover 610,000 (case data). The accounts at 31 December are not yet authorised. State the loss at the reporting date and the financial effect to disclose.
- Carrying amount of the destroyed plant
- 860,000
- Inventories destroyed
- 140,000
- Expected insurance proceeds
- 610,000