If the title to the goods has not been transferred from the seller to the buyer, an asset loss cannot be claimed because no actual physical loss of the goods has occurred. In this case, the title of ownership has not been transferred, so the goods belong to the seller. The loss is recorded as an expense debit against net income.
If goods are shipped fob destination, and they never reach their destination but are lost or destroyed through no fault of either party, then neither party can claim ownership. Both parties have a claim that must be resolved through an insurance claim or legal procedures.
If goods are shipped fob destination, and they never reach their destination but are lost or destroyed due to the fault of one party, the loss is recognized in the accounting records by one party. If this was not picked up in its entirety by insurance, then it becomes an income statement item for the party who was at fault.