ASC

ASC 310-962

Plan Accounting—Defined Contribution Pension Plans

310 Receivables

Download JSONDownload Markdown10 paragraphs · 8 sectionsJump to summary

Source downloaded: .Record version 88afaeef389f. Effective date must be checked in the source.

In brief

IntermediateRecognitionSubsequent measurementPresentationCompensation and benefits

This Subtopic governs receivables in the financial statements of defined contribution pension plans — principally employer/participant contributions receivable and participant loans. Contributions receivable are recognized when supported by a formal commitment or legal/contractual requirement, are shown net of an allowance for estimated uncollectible amounts, and are separately identified. Participant loans are measured at unpaid principal plus accrued but unpaid interest and are reported as notes receivable from participants rather than as investments at fair value.

Key points (7)
  • Contributions receivable include amounts due under formal commitments as well as legal or contractual requirements (310-962-25-1).
  • Evidence of an employer's formal commitment may include a governing-body resolution approving a specified contribution, a consistent pattern of post-year-end payments attributed to the preceding plan year under an established policy, a federal tax deduction for periods ending on or before the financial statement date, or the employer's recognition of a contribution payable (310-962-25-1(a)-(d)).
  • An accrued contribution payable in the employer's own financial statements does not, by itself, sufficiently support the plan's recognition of a contribution receivable (310-962-25-1(d)).
  • Contributions receivable shall include an allowance for estimated uncollectible amounts (310-962-35-1).
  • Participant loans shall be measured at unpaid principal balance plus accrued but unpaid interest (310-962-35-2), and classified for reporting purposes as notes receivable from participants (310-962-45-2).
  • Contributions receivable shall be separately identified in the plan's statements (310-962-45-1).
  • The fair value disclosures in paragraphs 825-10-50-10 through 50-16 are not required for participant loans (310-962-50-1).

For students. The key exam trap is participant loans: after ASU 2010-25 they are notes receivable measured at unpaid principal plus accrued interest, not investments carried at fair value, so the ASC 825 fair value disclosures do not apply. Also remember that the employer's accrued payable alone is not enough evidence for the plan to book a contribution receivable.

contributions receivableformal commitmentparticipant loansnotes receivable from participantsallowance for uncollectible amountsdefined contribution planunpaid principal plus accrued interestplan financial statements

Machine-generated study aid for ASC 310-962. Check the source paragraphs below.

310-962-00Status

Source downloaded: .Record version 9860a1ecafcb. Effective date must be checked in the source.

310-962-00-1
The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
962-310-35-2AddedAccounting Standards Update No. 2010-2509/28/2010
962-310-45-2AddedAccounting Standards Update No. 2010-2509/28/2010
962-310-50-1AddedAccounting Standards Update No. 2010-2509/28/2010
962-310-65-1AddedAccounting Standards Update No. 2010-2509/28/2010

310-962-05Overview and Background

Source downloaded: .Record version e17204dd4fe0. Effective date must be checked in the source.

310-962-05-1
This Subtopic provides guidance on accounting for receivables for defined contribution plans.

310-962-15Scope and Scope Exceptions

Source downloaded: .Record version 85049b41a2d4. Effective date must be checked in the source.

Overall Guidance

310-962-15-1
This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 962-10-15.

310-962-25Recognition

Source downloaded: .Record version 4644afed49f2. Effective date must be checked in the source.

Employer Contributions

310-962-25-1
Contributions receivable include those pursuant to formal commitments as well as legal or contractual requirements. With respect to an employer's contributions, evidence of a formal commitment may include any of the following:
  1. a
    A resolution by the employer's governing body approving a specified contribution
  2. b
    A consistent pattern of making payments after the plan's year-end pursuant to an established contribution policy that attributes such subsequent payments to the preceding plan year
  3. c
    A deduction of a contribution for federal tax purposes for periods ending on or before the financial statement date
  4. d
    The employer's recognition as of the financial statement date of a contribution payable to the plan. The existence of an accrued contribution payable in the employer's financial statements does not, by itself, provide sufficient support for recognition of a contribution receivable by the plan.

310-962-35Subsequent Measurement

Source downloaded: .Record version 4a698119f9e7. Effective date must be checked in the source.

310-962-35-1
Contributions receivable shall include an allowance for estimated uncollectible amounts.

Participant Loans

310-962-35-2
Participant loans shall be measured at their unpaid principal balance plus any accrued but unpaid interest.

310-962-45Other Presentation Matters

Source downloaded: .Record version 3844f625c6ca. Effective date must be checked in the source.

310-962-45-1
Contributions receivable shall be separately identified.

Participant Loans

310-962-45-2
For reporting purposes, participant loans shall be classified as notes receivable from participants.

310-962-50Disclosure

Source downloaded: .Record version 956585505228. Effective date must be checked in the source.

Participant Loans

310-962-50-1
The fair value disclosures prescribed in paragraphs
825-10-50-10 through 50-16
are not required for participant loans.

310-962-65Transition and Open Effective Date Information

Source downloaded: .Record version ea1c5e587935. Effective date must be checked in the source.

310-962-65-1
Paragraph superseded on 06/29/2012 after the end of the transition period stated in Accounting Standards Update No. 2010-25, Plan Accounting—Defined Contribution Pension Plans (Topic 962): Reporting Loans to Participants by Defined Contribution Pension Plans.

Related subtopics