# ASC 205-965-45: Presentation of Financial Statements — Plan Accounting—Health and Welfare Benefit Plans — 45 Other Presentation Matters Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/205/965/#45-other-presentation-matters) 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. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:86e99ec88124f7dd6d19b435008bda77971a223fe77aa174372ef8fc2fba369a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 205-965-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/205/965/#45-other-presentation-matters) SEC content: no #### Defined Benefit Health and Welfare Plans ##### [205-965-45-1](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:e85d039a1891b9325ccb8a1743102827f46a1980e45b14d6fae31f425208d4cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial statements of a [defined benefit health and welfare plan](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)") prepared in accordance with generally accepted accounting principles (GAAP) shall be prepared on the accrual basis of accounting and include all of the following: 1. a A statement of net assets available for benefits as of the end of the plan year (see paragraphs [965-20-45-1 through 45-2](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-1) ) 2. b A statement of changes in net assets available for benefits for the year then ended (see paragraphs [965-20-45-3 through 45-4](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-3) ) 3. c Information regarding the plan's benefit obligations as of the end of the plan year (see Subtopic 965-30) 4. d Information regarding the effects, if significant, of certain factors affecting the year-to-year change in the plan's benefit obligations (see paragraphs [965-30-45-4 through 45-8](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-4) ). ##### [205-965-45-2](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:be8afbf1f9310951befe2382547a265aa706c1fef16c53f440e665e6d208a717 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about the benefit obligations shall be presented in a separate statement, combined with other information on another financial statement, or disclosed in the notes to financial statements. Regardless of the format selected, the plan financial statements shall present the benefit obligations information in its entirety in the same location. The information shall be presented in such reasonable detail as is necessary to identify the nature and classification of the obligations. See Examples 1 through 3 (paragraphs [965-205-55-2 through 55-7](https://asc.understandingaccounting.org/asc/205/965/#205-965-55-2) ) for illustrative financial statements of [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services."). (See paragraph [965-205-50-6](https://asc.understandingaccounting.org/asc/205/965/#205-965-50-6).) #### Defined Contribution Health and Welfare Plans ##### [205-965-45-3](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-3) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:724f099a0ee4a9e7a33b1f0b007dbccc8ee08b0d299c7a18e34e8c0856dde591 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial statements of a [defined contribution health and welfare plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.") prepared in accordance with GAAP shall be prepared on the accrual basis of accounting and include both of the following: 1. a A statement of net assets available for benefits of the plan as of the end of the plan year (see Subtopic 965-30) 2. b A statement of changes in net assets available for benefits of the plan for the year then ended (see paragraphs [965-20-45-3 through 45-4](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-3) ). ##### [205-965-45-4](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-4) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:bb04bd35d142afbc0a2614aceb261d845d42a9da5963bd6ee0d38297fcc831a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because a plan's obligation to provide [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.") is limited to the amounts accumulated in an individual's account, information regarding benefit obligations is not applicable. #### Cash Flows ##### [205-965-45-5](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-5) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:40eab3d641ebdda6fcc78861609fd0190912a22bfce9bae1a11ffa093da7927e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraph [230-10-15-4](https://asc.understandingaccounting.org/asc/230/10/#230-10-15-4) provides that employee benefit plans other than pension plans (such as health and welfare plans, both defined benefit and defined contribution) that provide information similar to that required by Topic 960 are not required to provide a statement of cash flows. However, that paragraph encourages inclusion of a statement of cash flows in the financial statements of an employee benefit plan if such a statement would provide relevant information about the ability of the plan to meet future obligations (for example, if the plan invests in assets that are not highly liquid or obtains financing for investments). #### 401(h) Accounts ##### [205-965-45-6](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-6) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:9d7854d675910f60a412c2d5b5ebf103dceda6649db2002b8044293f8b247240 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain retiree health benefits may be funded through a [401(h) account](https://asc.understandingaccounting.org/glossary/h/#401-h-accounts "A postretirement medical-benefit component provided in some defined benefit pension plans in addition to the normal retirement benefits of the plan, pursuant to Section 401(h) of the Internal Revenue Code.") in a defined benefit pension plan, pursuant to Section 401(h) of the Internal Revenue Code. The 401(h) account assets and liabilities used to fund retiree health benefits, and the changes in those assets and liabilities, shall be reported in the financial statements of the health and welfare benefit plan. ##### [205-965-45-7](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-7) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:111f0aed03347d862fb00f6345c98d70f06a830b630a93a63c424122996cf56c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The 401(h) account assets and liabilities and changes in them can be shown in the health and welfare benefit plan financial statements in either of the following ways: 1. a As a single line item on the face of the statements 2. b Included in individual line items with separate disclosure in the notes to financial statements about the 401(h) amounts included in those individual line items. ##### [205-965-45-8](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-8) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:9f958676a3f876cf51212a403b1cf5ad42a59ada4a49310156136aa79a261415 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the assets and liabilities are shown as a single line item in the statement of net assets, the changes in net assets also shall be shown as a single line item in the statement of changes in net assets. If the assets and liabilities are included in individual asset and liability line items in the statement of net assets, the changes in individual 401(h) amounts shall be included in the changes in the individual line items in the statement of changes in net assets, with separate disclosure in the notes about the 401(h) amounts included in those individual line items. The 401(h) obligations shall be reported in the health and welfare benefit plan's statement of benefit obligations. Likewise, the health and welfare benefit plan's statement of changes in benefit obligations shall include claims paid through the 401(h) account. ##### [205-965-45-9](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-9) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:7baa1874aac139c103b7ae1f23f632198824cd5a9af6acc4cd338b818cdc925f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Illustrative financial statements of a health and welfare benefit plan funded through a 401(h) account in a separate defined benefit pension plan are presented in Example 4 (see paragraph [965-205-55-8](https://asc.understandingaccounting.org/asc/205/965/#205-965-55-8)). #### Employees' Beneficiary Association Trust ##### [205-965-45-10](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-10) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:3e14d0b8dc6a41188d8463c87aabf6a12a865de63a113267b2dc3241fa93bac8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the assets of more than one plan are held in a 501(c)(9) Voluntary Employees' Beneficiary Association trust, separate reports must be prepared for each plan. Some plans may pay only a portion of the plan's benefit payments and other expenses through the Association. #### Interests in Master Trusts ##### [205-965-45-11](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-11) Pending content: no Source downloaded (UTC): 2026-09-09T22:57:51.585Z to 2026-09-09T22:57:51.585Z Record version: sha256:ffad07f7e4bb68341cd8b97ac3ff9236e58455b22e7bd0a869d23e34f3c8c7d2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For each master trust in which a plan holds an interest, a plan shall present that interest and the change in that interest in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. See Section 965-325-50 for master trust disclosures.