{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/320/965/#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":"320","topic_title":"Investments—Debt Securities","subtopic":"320-965","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":null,"paragraphs":[{"citation":"320-965-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_22BC5CD3-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The accrual basis of accounting requires that purchases of securities be recorded on a trade-date basis. </span></span><span class=\"sfragment\" id=\"sfr_22BC5E23-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">However, if the settlement date is later than the financial statement date, </span></span><span class=\"sfragment\" id=\"sfr_22BC5F5C-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">accounting on a settlement-date basis for such purchases is acceptable if both of the following conditions exist: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_22BC608D-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/f/#fair-value\" class=\"term\" title=\"The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.\"><span>fair value</span></a> less costs to sell, if significant, of the securities purchased just before the financial statement date does not change significantly from the trade date to the financial statement date. </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_22BC61BB-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The purchases do not significantly affect the composition of the plan's assets available for benefits. </span></span></div></li></ol></div></div>","snippet":"The accrual basis of accounting requires that purchases of securities be recorded on a trade-date basis. However, if the settlement date is later than the financial statement date, accounting on a settlement-date basis f…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e88960f97e39b772529600ec7c2f86ada99e248e03fc4b83ec82e302696fc9e","downloaded_from":"2026-09-09T23:38:29.180Z","last_downloaded_at":"2026-09-09T23:38:29.180Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478394","source_sha256":"da8d32c2c403cd6fb3468d7bf5732b6bbe5e1548b2049879329aff7757e686ca"}},{"citation":"320-965-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">See Subtopic <a altsource=\"GUID-D998C681-B45B-4F45-8FFE-36EAF5A9A697.ditamap\" class=\"ditamap\">965-325</a> for guidance on accounting for other investments, in particular investment and insurance contracts, of <a href=\"/glossary/h/#health-and-welfare-benefit-plans\" class=\"term\" title=\"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.\"><span>health and welfare benefit plans</span></a>.</div></div>","snippet":"See Subtopic 965-325 for guidance on accounting for other investments, in particular investment and insurance contracts, of health and welfare benefit plans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae7f66ad31d1b0e6590303e4c4ebab7e92dbc0b1ba73aebef0b12594ad890b30","downloaded_from":"2026-09-09T23:38:29.180Z","last_downloaded_at":"2026-09-09T23:38:29.180Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478394","source_sha256":"da8d32c2c403cd6fb3468d7bf5732b6bbe5e1548b2049879329aff7757e686ca"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c32126391880a6ea81be3a0bffc52caeddde01666d70dbf46ab9ad1c19f047ab","downloaded_from":"2026-09-09T23:38:29.180Z","last_downloaded_at":"2026-09-09T23:38:29.180Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478394","source_sha256":"da8d32c2c403cd6fb3468d7bf5732b6bbe5e1548b2049879329aff7757e686ca"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa4a9542269519ea75b7c83768e549b8b38f35c7bbd0e2d63927f38315d851bf","downloaded_from":"2026-09-09T23:38:29.180Z","last_downloaded_at":"2026-09-09T23:38:29.180Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478394","source_sha256":"da8d32c2c403cd6fb3468d7bf5732b6bbe5e1548b2049879329aff7757e686ca"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aa4a9542269519ea75b7c83768e549b8b38f35c7bbd0e2d63927f38315d851bf","downloaded_from":"2026-09-09T23:38:29.180Z","last_downloaded_at":"2026-09-09T23:38:29.180Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478394","source_sha256":"da8d32c2c403cd6fb3468d7bf5732b6bbe5e1548b2049879329aff7757e686ca"}}