# ASC 310-965-25: Receivables — Plan Accounting—Health and Welfare Benefit Plans — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/310/965/#25-recognition) 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): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:252eb8626346786638928d4c8a1ca44d0d6f482fe3bc5c444051bfcf18bf767e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 310-965-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/310/965/#25-recognition) SEC content: no #### Employer Contributions ##### [310-965-25-1](https://asc.understandingaccounting.org/asc/310/965/#310-965-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:95f2299039857af1102d3fd97e351fa630fc0e00fa7ff1765b2ada20ad09829f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Premiums Paid to Insurance Entities ##### [310-965-25-2](https://asc.understandingaccounting.org/asc/310/965/#310-965-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:9452c1478038107d2c12e3d15b8649091780b00bb01edf134c192034247e5969 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [310-965-25-3](https://asc.understandingaccounting.org/asc/310/965/#310-965-25-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:33:32.243Z to 2026-09-09T23:33:32.243Z Record version: sha256:33a6936e20e684413a2c868a2667c6484cc5c79e14ddeb29433b05d54e816afe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. These deposits shall be reported as [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Securities of the employer held by the plan are includable in plan assets provided they are transferable. Assets not segregated in a trust, or otherwise effectively restricted, so that they cannot be used by the employer for other purposes are not plan assets, even though the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify 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.