This General Instruction (GI) 202.300 from Saudi Aramco outlines the essential corporate financial policies and procedures governing the accounting for costs incurred as a result of casualty events. It provides a comprehensive framework for managing financial impacts from incidents, including detailed guidelines on notification requirements, investigation procedures, and the assignment of internal order (IO) numbers for accumulating casualty costs. The document details how to account for direct costs, capital asset replacements, insurance claims, and the write-off of damaged assets, differentiating between ordinary and extraordinary casualty losses. It also explains the use of Emergency Project Work Breakdown Structure (WBS) accounts for major incidents exceeding $4 million and the funding mechanisms through Budget Items (BI) for asset replacements. This instruction is crucial for ensuring accurate financial reporting and effective cost control following unexpected events. Ideal for accounting managers, financial analysts, and project cost controllers working in the oil and gas industry.
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