CATASTROPHIC LOSSES (K.7)

6.22 Catastrophic losses (K.7) recorded as other changes in the volume of assets are the result of large-scale, discrete and recognisable events that may destroy items within any of the categories of economic (non-financial or financial) assets.

6.23 Such events include major earthquakes, volcanic eruptions, tidal waves, exceptionally severe hurricanes, drought and other natural disasters; acts of war, riots and other political events; and technological accidents such as major toxic spills or release of radioactive particles into the air.

Included here are in particular:

1. deterioration in the quality of land caused by abnormal flooding or wind damage;
2. destruction of cultivated assets by drought or outbreak of disease;
3. destruction of buildings, equipment or valuables in forest fires or earthquakes;
4. accidental destruction of currency or bearer securities as a result of natural catastrophes or political events.