Receivables

In September 30 2005, the directors of Company x discovered a fraud. In total, $700000 receivables had been stolen by an employee. $450000 was related to the previous year, and the rest is related to the current year. The directors are hopeful that 50% of losses can be recovered from the company’s insurers.
My question is: what impact does this case have on the company’s statement of profit or loss and statement of financial position?
What I find a bit complicated is that the receivables can be recovered from the insurance, which I don’t have any idea about the correct accounting treatment.