# ASC 205-960-10: Presentation of Financial Statements — Plan Accounting—Defined Benefit Pension Plans — 10 Objectives

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/205/960/#10-objectives)

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## ASC 205-960-10: 10 Objectives

[Read section](https://asc.understandingaccounting.org/asc/205/960/#10-objectives)

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##### [205-960-10-1](https://asc.understandingaccounting.org/asc/205/960/#205-960-10-1)

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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](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.") 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](https://asc.understandingaccounting.org/asc/205/960/#205-960-05-2)).

##### [205-960-10-2](https://asc.understandingaccounting.org/asc/205/960/#205-960-10-2)

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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.

##### [205-960-10-3](https://asc.understandingaccounting.org/asc/205/960/#205-960-10-3)

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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](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries.") 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.