On 2 July 2021, SSL's warehouse was inundated by a flash flood. As a result, 40 per cent of the inventory held was damaged and deemed to be unsaleable. On 9 July 2021, the company lodged an insurance claim for the cost of the damaged inventory. On 24 July 2021, SSL received written confirmation from its insurer that the claim would be settled in full on 14 August 2021. The following information was included in the 2021 draft financial report: the account balance 'inventories' reflects the write-off of the cost of the inventory subject to the insurance claim the account balance 'other receivables' includes an insurance debtor for the amount of the cost of the inventory subject to the insurance claim. Explain whether the accounting treatment of the above event in SSL's 2021 financial report is appropriate