{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/205/960/#10-objectives","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"205","topic_title":"Presentation of Financial Statements","subtopic":"205-960","subtopic_title":"Plan Accounting—Defined Benefit Pension Plans","section":{"number":"10","label":"10 Objectives","anchor":"10-objectives","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"205-960-10-1","para":"10-1","html":"
The primary objective of a pension plan's financial statements is to provide financial information that is useful in assessing the plan's present and future ability to pay benefits when due. In that regard, both of the following are recognized:
  1. a
    Information in addition to that contained in a plan's financial statements is needed in assessing the plan's present and future ability to pay benefits when due.
  2. b
    Financial statements for several plan years can provide information more useful in assessing the plan's future ability to pay benefits than can the financial statements for a single plan year (see paragraph 960-205-05-2).
","snippet":"The primary objective of a pension plan's financial statements is to provide financial information that is useful in assessing the plan's present and future ability to pay benefits when due. In that regard, both of the f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:601d6adc9e774d0eb0ab93493d582f16993056cbdaff780cbbca5f0baa0e1507","downloaded_from":"2026-09-09T22:56:38.913Z","last_downloaded_at":"2026-09-09T22:56:38.913Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477344","source_sha256":"ffb34520d630df7644de54936038506d62aaacc51133159a7011677207c5b3c5"}},{"citation":"205-960-10-2","para":"10-2","html":"
Although this Subtopic does not identify any one group as the primary users, the content of plan financial statements shall focus on the needs of plan participants because pension plans exist primarily for their benefit. However, plan financial statements should also be useful to others who have any of the following characteristics:
  1. a
    Advise or represent participants
  2. b
    Are present or potential investors or creditors of the employer(s)
  3. c
    Are responsible for funding the plan (for example, state legislators)
  4. d
    For other reasons have a derived or indirect interest in the financial status of the plan.
","snippet":"Although this Subtopic does not identify any one group as the primary users, the content of plan financial statements shall focus on the needs of plan participants because pension plans exist primarily for their benefit.…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7e7aaa27e6ad8d6b3938657412efe79f54cf3329b5456ad7742089eaf2be168b","downloaded_from":"2026-09-09T22:56:38.913Z","last_downloaded_at":"2026-09-09T22:56:38.913Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477344","source_sha256":"ffb34520d630df7644de54936038506d62aaacc51133159a7011677207c5b3c5"}},{"citation":"205-960-10-3","para":"10-3","html":"
To accomplish its primary objective, a plan's financial statements shall provide information about all of the following:
  1. a
    Plan resources and how the stewardship responsibility for those resources has been discharged
  2. b
    The accumulated plan benefits of participants
  3. c
    The results of transactions and events that affect the information regarding those resources and benefits
  4. d
    Other factors necessary for users to understand the information provided.
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