# ASC 325-962-25: Investments—Other — Plan Accounting—Defined Contribution Pension Plans — 25 Recognition

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/325/962/#25-recognition)

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## ASC 325-962-25: 25 Recognition

[Read section](https://asc.understandingaccounting.org/asc/325/962/#25-recognition)

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##### [325-962-25-1](https://asc.understandingaccounting.org/asc/325/962/#325-962-25-1)

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The accrual basis requires that purchases and sales of securities be recorded on a trade-date basis. However, if the settlement date is after the financial statement date, accounting on a settlement-date basis is acceptable if both of the following conditions exist:

1.  a
    
    The fair value of securities purchased or sold immediately before the financial statement date does not change significantly from the trade date to the financial statement date.
    
2.  b
    
    The purchases or sales do not significantly affect the composition of the plan's assets available for benefits.