# ASC 320-965: Investments—Debt Securities — Plan Accounting—Health and Welfare Benefit Plans Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/320/965/) 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): 2026-09-09T23:38:18.815Z to 2026-09-09T23:38:38.868Z Record version: sha256:049e847c0d44673f4e66c95c156b3e2f2ddceae89b223d91d39ab9a1efc858e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965: Investments—Debt Securities — Plan Accounting—Health and Welfare Benefit Plans ### Machine-generated study aids ```json { "summary": "ASC 320-965 tells health and welfare benefit plans how to account for their investments in debt and equity securities. Such securities are reported at fair value less costs to sell (if significant) at the financial statement date, and purchases and sales are ordinarily recorded on a trade-date basis. Settlement-date accounting is permitted only if the fair value did not change significantly between trade date and financial statement date and the transactions do not significantly affect the composition of plan assets available for benefits.", "key_points": [ "Plan investments in equity or debt securities are reported at fair value less costs to sell, if significant, as of the financial statement date (320-965-35-1).", "Accrual accounting requires purchases of securities to be recorded on a trade-date basis (320-965-25-1).", "Settlement-date accounting for purchases is acceptable when settlement follows the financial statement date only if fair value less costs to sell did not change significantly from trade date to statement date and the purchases do not significantly affect the composition of plan assets available for benefits (320-965-25-1(a)-(b)).", "The same trade-date rule and two-condition settlement-date exception apply to sales of securities (320-965-40-1).", "Net appreciation or depreciation in the fair value less costs to sell, if significant, of investments is ordinarily disclosed in the notes to the financial statements (320-965-50-1).", "Other investments of health and welfare benefit plans, particularly investment and insurance contracts, are addressed in Subtopic 965-325, not here (320-965-25-2).", "Scope follows Section 965-10-15, the Overall health and welfare benefit plan Subtopic (320-965-15-1)." ], "categories": [ "Subsequent measurement", "Fair value", "Disclosure", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Benefit plan accounting departs from ordinary ASC 320 classification: there is no held-to-maturity/available-for-sale/trading distinction — everything is at fair value less costs to sell, with changes flowing through the statement of changes in net assets available for benefits. The common trap is assuming settlement-date accounting is freely available; it is a narrow exception requiring both conditions in 320-965-25-1 to be met.", "related_topics": [ "965-10", "965-325", "960-325", "962-325", "820", "320-10" ], "key_concepts": [ "health and welfare benefit plan", "fair value less costs to sell", "trade-date accounting", "settlement-date accounting", "net appreciation or depreciation", "net assets available for benefits", "debt and equity securities", "employee benefit plan accounting" ] } ``` Source downloaded (UTC): 2026-09-09T23:38:18.815Z to 2026-09-09T23:38:18.815Z Record version: sha256:8b7ce93f4a983c097f16b2a70d5b212d7e98082fece3b36f08b67a1c95e9ab6e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/320/965/#00-status) SEC content: no ##### [320-965-00-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:18.815Z to 2026-09-09T23:38:18.815Z Record version: sha256:d76bffe020ee2b29ee19c9789c7325a8294b731a93806cca6ec37ac55d56e28b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Fair Value (2nd def.)SupersededAccounting Standards Update No. 2012-0410/01/2012
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
965-320-25-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-320-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-320-40-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-320-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
Source downloaded (UTC): 2026-09-09T23:38:21.403Z to 2026-09-09T23:38:21.403Z Record version: sha256:ed072cd2f7ef0b1d2364db8c235187122f4a348d70bdd300438170fc9ae73dc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/320/965/#05-overview-and-background) SEC content: no ##### [320-965-05-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:21.403Z to 2026-09-09T23:38:21.403Z Record version: sha256:92e9e15526f1935d514250b965f516174c46acd84d008d0e3504142eb1a3b460 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on debt and equity securities investments for [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."). Source downloaded (UTC): 2026-09-09T23:38:23.686Z to 2026-09-09T23:38:23.686Z Record version: sha256:531f1c2aa03c6c8f56792775ba1db1b0af760b5d7c1c4048aef5ec5cef9cc572 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/320/965/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [320-965-15-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:23.686Z to 2026-09-09T23:38:23.686Z Record version: sha256:402874671cfa2e4b7fd17aaad6bfb471488cd5e31629bb45202dbeb61e0068f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 965-10-15. Source downloaded (UTC): 2026-09-09T23:38:29.180Z to 2026-09-09T23:38:29.180Z Record version: sha256:aa4a9542269519ea75b7c83768e549b8b38f35c7bbd0e2d63927f38315d851bf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/320/965/#25-recognition) SEC content: no ##### [320-965-25-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-25-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:29.180Z to 2026-09-09T23:38:29.180Z Record version: sha256:9e88960f97e39b772529600ec7c2f86ada99e248e03fc4b83ec82e302696fc9e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 for such purchases is acceptable if both of the following conditions exist: 1. a The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") 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. 2. b The purchases do not significantly affect the composition of the plan's assets available for benefits. ##### [320-965-25-2](https://asc.understandingaccounting.org/asc/320/965/#320-965-25-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:29.180Z to 2026-09-09T23:38:29.180Z Record version: sha256:ae7f66ad31d1b0e6590303e4c4ebab7e92dbc0b1ba73aebef0b12594ad890b30 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Subtopic 965-325 for guidance on accounting for other investments, in particular investment and insurance contracts, 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."). Source downloaded (UTC): 2026-09-09T23:38:32.862Z to 2026-09-09T23:38:32.862Z Record version: sha256:c7a0cccad5514d90338fdcb4a377f115b4cd879c295e0d718e460a9e51992aaa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/320/965/#35-subsequent-measurement) SEC content: no ##### [320-965-35-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:32.862Z to 2026-09-09T23:38:32.862Z Record version: sha256:4354de7a61b915e411dafb24ea946b4c326bdd2a5e2481c895be4d67606ace44 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan investments in the form of equity or debt securities shall be reported at their [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") less costs to sell, if significant, at the financial statement date. Source downloaded (UTC): 2026-09-09T23:38:36.490Z to 2026-09-09T23:38:36.490Z Record version: sha256:a635bf8abcc62af8c789d8cc692d2b0ad0ae15c479d7fa01fe85ecc0de332722 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-40: 40 Derecognition [Read section](https://asc.understandingaccounting.org/asc/320/965/#40-derecognition) SEC content: no ##### [320-965-40-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-40-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:36.490Z to 2026-09-09T23:38:36.490Z Record version: sha256:8216796f34fb6f632b982b20a4a7ec5e7ba98057bb26fb5d3d9d77a01514de89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accrual basis of accounting requires that sales 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 for such purchases is acceptable if both of the following conditions exist: 1. a The [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") less costs to sell, if significant, of the securities sold just before the financial statement date does not change significantly from the trade date to the financial statement date. 2. b The sales do not significantly affect the composition of the plan's assets available for benefits. Source downloaded (UTC): 2026-09-09T23:38:38.868Z to 2026-09-09T23:38:38.868Z Record version: sha256:c52647fd38487a9e6899357e3fa7cac0d5b4b3798d3d479498285c4d9d1a0ca6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 320-965-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/320/965/#50-disclosure) SEC content: no ##### [320-965-50-1](https://asc.understandingaccounting.org/asc/320/965/#320-965-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:38:38.868Z to 2026-09-09T23:38:38.868Z Record version: sha256:9836c84f33f80722ab11a1891c4e36d830f15dbfcbdd0e856bf2cdf5a3bd55d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Ordinarily, information regarding the net appreciation or depreciation in the [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "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.") less costs to sell, if significant, of investments shall be disclosed in the notes to financial statements.