Question 3 5 Marks

On 21 July 2021, a fire destroyed goods stored at one of Bela Ltds warehouses, resulting in damages of $200,000. Insurance will cover $160,000 of the damages but payment of the insurance claim has been delayed by a police investigation. The balance date of Bela Ltd is 30 June 2021. The financial statements were authorised for issue on 31 August 2021 by the directors.

REQUIRED

Describe the appropriate accounting treatment with reference to the relevant accounting standard.