{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/325/962/#35-subsequent-measurement","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":"325","topic_title":"Investments—Other","subtopic":"325-962","subtopic_title":"Plan Accounting—Defined Contribution Pension Plans","section":{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":"Reporting at Fair Value","paragraphs":[{"citation":"325-962-35-1","para":"35-1","html":"
Plan investments should generally be presented at their fair value at the reporting date (see paragraph 965-325-35-3 for special provisions concerning the valuation of insurance contracts and paragraph 962-325-35-5 for special provisions concerning the valuation of fully benefit-responsive investment contracts).
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If significant, the fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale (similar to fair value less cost to sell).
","snippet":"If significant, the fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale (similar to fair value less cost to sell).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a902e9515f113abe2770b90bf7561be4f7862fc226ca1a4e0ee76f8c45921070","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-1B","para":"35-1B","html":"
If a plan's fiscal year-end does not coincide with a month-end, the plan may measure investments and investment-related accounts (for example, a liability for a pending trade with a broker) using the month-end that is closest to the plan's fiscal year-end. That election shall be applied consistently from year to year.
","snippet":"If a plan's fiscal year-end does not coincide with a month-end, the plan may measure investments and investment-related accounts (for example, a liability for a pending trade with a broker) using the month-end that is cl…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f5e1585786ffa9276014521bef743c8b59c889cd28860b92d55c84cf6aab861a","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-2","para":"35-2","html":"
Some plan investments may not have Level 1 inputs to measure fair value. Therefore, they will need to be measured in accordance with the other valuation techniques described in Topic 820. Examples include all of the following:
  1. a
    Real estate
  2. b
    Mortgages or other loans
  3. c
    Limited partnerships
  4. d
    Restricted securities
  5. e
    Unregistered securities
  6. f
    Securities that are traded in inactive markets
  7. g
    Nontransferable investment contracts.
","snippet":"Some plan investments may not have Level 1 inputs to measure fair value. Therefore, they will need to be measured in accordance with the other valuation techniques described in Topic 820. Examples include all of the foll…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f13c587ea4ea01be39a9a9e5b0f966b234a19c99cb6d7facdc05c99a8256e343","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-3","para":"35-3","html":"
Both of the following are the obligation of the plan's trustees, the administrator, and the corporate trustee:
  1. a
    To satisfy themselves that all appropriate factors relevant to the value of the investments have been considered
  2. b
    To select a method to measure the fair value of the investments.
","snippet":"Both of the following are the obligation of the plan's trustees, the administrator, and the corporate trustee:\n(a) To satisfy themselves that all appropriate factors relevant to the value of the investments have been con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8efa8c1546c8543265d7d7f6d772cf8c294ea03fad5e03983424c2c23b972bea","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-4","para":"35-4","html":"
To the extent considered necessary, the plan may use the services of a specialist to assist the plan (or the administrators) in measuring the fair value of investments. Topic 820 provides guidance on how to measure fair value.
","snippet":"To the extent considered necessary, the plan may use the services of a specialist to assist the plan (or the administrators) in measuring the fair value of investments. Topic 820 provides guidance on how to measure fair …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aafade5caeff26b148d8e18311606a2c76e05098b85388e38a3f3814c0622f44","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:58dfefe0ca553f02dbbb532168bc4090934f604986b8e064c3a01459c9f4f5eb","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"block":null,"heading":"Investment and Insurance Contracts","paragraphs":[{"citation":"325-962-35-5","para":"35-5","html":"
Defined contribution plans, including both health and welfare and pension plans, shall report investments (including derivative contracts) at fair value (excluding insurance contracts and fully benefit-responsive investment contracts [see paragraph 962-325-35-6 for special provisions on the valuation of insurance contracts and paragraph 962-325-35-5A for special provisions on the valuation of fully benefit-responsive investment contracts]).
","snippet":"Defined contribution plans, including both health and welfare and pension plans, shall report investments (including derivative contracts) at fair value (excluding insurance contracts and fully benefit-responsive investm…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f325c689a8cf988eb7dcb287be209bee4f73a1eee6a1f1b69ce1b7fcd8eaade8","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-5A","para":"35-5A","html":"
Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts.
","snippet":"Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8f1b58875f4db51a60fd99fad944aa6faa9ae88fdf13b619e66ee99d14e1cdd5","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-6","para":"35-6","html":"
Insurance contracts, as defined by Subtopic 944-20, shall be presented in the same manner as specified in the annual report filed by the plan with certain governmental agencies in accordance with the Employee Retirement Income Security Act; that is, either at fair value or at amounts determined by the insurance entity (contract value). Plans not subject to the Employee Retirement Income Security Act shall present insurance contracts as if the plans were subject to the reporting requirements of the Act.
","snippet":"Insurance contracts, as defined by Subtopic 944-20, shall be presented in the same manner as specified in the annual report filed by the plan with certain governmental agencies in accordance with the Employee Retirement …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e764f208ba999cbdf423b2d9ad4222bf5749b0e542e69ef587050b42349e2299","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-7","para":"35-7","html":"
See paragraphs
944-20-05-5 through 05-7
for a discussion of the purpose, types, and a general characterization of insurance transactions.
","snippet":"See paragraphs 944-20-05-5 through 05-7 for a discussion of the purpose, types, and a general characterization of insurance transactions.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ec2c9ee98c08aa6f0c684df66f4d0c7faa04a58065febfc0f087f8e322257630","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-8","para":"35-8","html":"
See paragraphs
944-20-15-16 through 15-19
for a discussion of certain types of insurance contracts, including long-duration contracts that do not subject the insurance entities to mortality or morbidity risks (investment contracts) and annuity contracts.
","snippet":"See paragraphs 944-20-15-16 through 15-19 for a discussion of certain types of insurance contracts, including long-duration contracts that do not subject the insurance entities to mortality or morbidity risks (investment…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e14c307caff4626ff819ca5af5ebb61e922715e0ce43c119017b25a34548e22","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00070cc3d31728cd08b1d17c315d2b268d517fd3b7b16404f76ca382e38456a4","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"block":null,"heading":"Evaluation of Benefit Responsiveness","paragraphs":[{"citation":"325-962-35-9","para":"35-9","html":"
If a plan holds multiple contracts, each contract shall be evaluated individually for benefit responsiveness.
","snippet":"If a plan holds multiple contracts, each contract shall be evaluated individually for benefit responsiveness.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:735a718611d8937cefe6243beba623f575059c2e7cbe371aedcbd193be4ee277","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-10","para":"35-10","html":"
Contracts that provide for prospective interest adjustments may still be fully benefit-responsive provided that the terms of the contracts specify that the crediting interest rate cannot be less than zero.
","snippet":"Contracts that provide for prospective interest adjustments may still be fully benefit-responsive provided that the terms of the contracts specify that the crediting interest rate cannot be less than zero.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5ae1e5eaa44889ff3adc151f10ca55a9e827592fa4b023a3e1723b185f43ad9e","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4118e8bf995f6e0028f28bcf5475e78e864250d7de7338c481a6f4dde85edd6","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"block":null,"heading":"Application of Benefit Responsiveness","paragraphs":[{"citation":"325-962-35-11","para":"35-11","html":"
Paragraphs
962-325-55-2 through 55-15
include implementation guidance for the application of the definition of fully benefit-responsive for defined contribution plan investments.
","snippet":"Paragraphs 962-325-55-2 through 55-15 include implementation guidance for the application of the definition of fully benefit-responsive for defined contribution plan investments.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4e05b91c496bde4ad3a953d5093ec419e5cbae26e13eca6a681d02925b841a57","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},{"citation":"325-962-35-12","para":"35-12","html":"
Paragraph superseded by Accounting Standards Update No. 2015-12 (Part I).
","snippet":"Paragraph superseded by Accounting Standards Update No. 2015-12 (Part I).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:23c0219bf0aa603ee7e6ea6cb1b081bb070f25ff608fa4c0f8f92072b1fabd28","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f20b783b12967a609b995010a247393ffa51c9a68d5799bb63209cb54df576cb","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb9ae9150b00554aca0fc12f50a0e59f7c3afb55259a501b7adb634db91ef8e8","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb9ae9150b00554aca0fc12f50a0e59f7c3afb55259a501b7adb634db91ef8e8","downloaded_from":"2026-09-09T23:48:24.942Z","last_downloaded_at":"2026-09-09T23:48:24.942Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147478844","source_sha256":"c8ce77b25818578b5afeb67b14359341a0d8289ee36cca4b5199f23266dcb4c7"}}