Forward Focus - October 2011
Insurance and wealth management
A year has passed since the first quake hit Christchurch. In the last week I have had the opportunity to walk around parts of the CBD and look over the fence into the deserted central area. A number of the buildings have been pulled down and many more are due to be removed over the coming months. What struck me most as I watched curtains float out of broken windows on the buildings that do remain standing, was the emptiness. The sooner that the city can be rebuilt the better. However, there is still considerable uncertainty as to what can, and what should replace the buildings that have had to be removed. What is clear is that this will take many years, as there is so much to do.
The rebuilding of Christchurch will continue to be at the forefront of the political agendas for some time. In this edition of Forward Focus we take a look at the accounting and tax issues that your clients may be facing a year on from the earthquake. Many organisations are still in the process of quantifying the damage that the earthquake has done to their properties and business. Representing this accurately to the stakeholders is proving to be challenging. We look at asset impairment and insurance recoveries and their effect on financial reporting in ‘Christchurch earthquake one year on: an accounting perspective’. We also review the recent changes to the tax legislation around depreciation and insurance recoveries in the article entitled ‘Christchurch earthquake: a tax perspective.’
In this issue we look to the future. Grant Frear looks at Social media – a fad or business reality? In his article Grant explores the opportunities social media provides to communicate and relate to stakeholders be they employees or customers. Finally, we present a case study of underwriting at a granular level for a home and vehicle insurer and the importance of getting your pricing right in an increasingly competitive market.
We hope you enjoy the read, and as always we welcome your comments.