{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/310/965/#25-recognition","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":"310","topic_title":"Receivables","subtopic":"310-965","subtopic_title":"Plan Accounting—Health and Welfare Benefit Plans","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Employer Contributions","paragraphs":[{"citation":"310-965-25-1","para":"25-1","html":"
With respect to employers' contributions recognized pursuant to a formal commitment, evidence of such a 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 end of the plan year, pursuant to an established funding policy that attributes such subsequent payments to the preceding plan year
  3. c
    A deduction of a contribution for federal income 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 liability in the employer's statement of financial position or a plan's benefit obligations exceeding its net assets available for benefit obligations does not, by itself, provide sufficient support for recognition of a contribution receivable by the plan.
","snippet":"With respect to employers' contributions recognized pursuant to a formal commitment, evidence of such a commitment may include any of the following:\n(a) A resolution by the employer's governing body approving a specified…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:95f2299039857af1102d3fd97e351fa630fc0e00fa7ff1765b2ada20ad09829f","downloaded_from":"2026-09-09T23:33:32.243Z","last_downloaded_at":"2026-09-09T23:33:32.243Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477861","source_sha256":"25eb3f4f6eefbc2d4d408678eef880bf9558f3e0af2477d5263566b801301579"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5620219108512f9a6fb787f054e856349d8159279a6455cf744db776e94b0f95","downloaded_from":"2026-09-09T23:33:32.243Z","last_downloaded_at":"2026-09-09T23:33:32.243Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477861","source_sha256":"25eb3f4f6eefbc2d4d408678eef880bf9558f3e0af2477d5263566b801301579"}},{"block":null,"heading":"Premiums Paid to Insurance Entities","paragraphs":[{"citation":"310-965-25-2","para":"25-2","html":"
Whether a premium paid to an insurance entity represents payment for the transfer of risk or merely represents a deposit will depend on the circumstances of the arrangement. The nature of payments made to an insurance entity shall be analyzed to determine the extent to which financial risk has been transferred from the plan to the insurance entity. Insurance entities may require that a deposit be maintained that can be applied against possible future losses in excess of current premiums. See Subtopic 340-30 for additional guidance on accounting for payments to insurance entities.
","snippet":"Whether a premium paid to an insurance entity represents payment for the transfer of risk or merely represents a deposit will depend on the circumstances of the arrangement. The nature of payments made to an insurance en…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9452c1478038107d2c12e3d15b8649091780b00bb01edf134c192034247e5969","downloaded_from":"2026-09-09T23:33:32.243Z","last_downloaded_at":"2026-09-09T23:33:32.243Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477861","source_sha256":"25eb3f4f6eefbc2d4d408678eef880bf9558f3e0af2477d5263566b801301579"}},{"citation":"310-965-25-3","para":"25-3","html":"
These deposits shall be reported as plan assets until such amounts are used to pay premiums. Similarly, premium stabilization reserves, which exist when premiums paid to an insurance entity exceed the total of claims paid and other charges, are held by an insurance entity and used to reduce future premium payments. Premium stabilization reserves generally shall be reported as assets of the plan until such amounts are used to pay premiums. If such reserves are forfeitable when the insurance contract terminates, this possibility shall be considered in recognizing this asset. In the case of experience-rating refunds, and in cases when the policy year does not coincide with the plan's fiscal year, the refund due as of the financial statement date shall be reported as a plan asset if it is probable that a refund is due and the amount can be reasonably estimated.
","snippet":"These deposits shall be reported as plan assets until such amounts are used to pay premiums. Similarly, premium stabilization reserves, which exist when premiums paid to an insurance entity exceed the total of claims pai…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:33a6936e20e684413a2c868a2667c6484cc5c79e14ddeb29433b05d54e816afe","downloaded_from":"2026-09-09T23:33:32.243Z","last_downloaded_at":"2026-09-09T23:33:32.243Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477861","source_sha256":"25eb3f4f6eefbc2d4d408678eef880bf9558f3e0af2477d5263566b801301579"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4c6e0ffa5fd0d8a57a3b91cd2712e323f8506148dc6fc6c55c4b00b2e1f1e039","downloaded_from":"2026-09-09T23:33:32.243Z","last_downloaded_at":"2026-09-09T23:33:32.243Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477861","source_sha256":"25eb3f4f6eefbc2d4d408678eef880bf9558f3e0af2477d5263566b801301579"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:252eb8626346786638928d4c8a1ca44d0d6f482fe3bc5c444051bfcf18bf767e","downloaded_from":"2026-09-09T23:33:32.243Z","last_downloaded_at":"2026-09-09T23:33:32.243Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477861","source_sha256":"25eb3f4f6eefbc2d4d408678eef880bf9558f3e0af2477d5263566b801301579"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:252eb8626346786638928d4c8a1ca44d0d6f482fe3bc5c444051bfcf18bf767e","downloaded_from":"2026-09-09T23:33:32.243Z","last_downloaded_at":"2026-09-09T23:33:32.243Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477861","source_sha256":"25eb3f4f6eefbc2d4d408678eef880bf9558f3e0af2477d5263566b801301579"}}