# ASC 325-965-35: Investments—Other — Plan Accounting—Health and Welfare Benefit Plans — 35 Subsequent Measurement Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/325/965/#35-subsequent-measurement) 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): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:bac5359b97b65d96cd26dfa3cead1e62d15bd6130be042eb5de9f5a2b157ac6f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/325/965/#35-subsequent-measurement) SEC content: no #### Reporting at Fair Value ##### [325-965-35-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:5afe78c24fbef4b4d837e1603ea8105507f3e78d00958db197c5fc26d41dc3c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan investments, whether they are in the form of equity or debt securities, real estate, or other investments (excluding insurance contracts and [fully benefit-responsive investment contracts](https://asc.understandingaccounting.org/glossary/f/#fully-benefit-responsive-investment-contract "An investment contract is considered fully benefit-responsive if all of the following criteria are met for that contract, analyzed on an individual basis: The investment contract is effected directly between the plan and the issuer and prohibits the plan from assigning or selling the contract or its proceeds to another party without the consent of the issuer. Either of the following conditions exists: The repayment of principal and interest credited to participants in the plan is a financial obligation of the issuer of the investment contract. Prospective interest crediting rate adjustments are provided to participants in the plan on a designated pool of investments held by the plan or the contract issuer, whereby a financially responsible third party, through a contract generally referred to as a wrapper, must provide assurance that the adjustments to the interest crediting rate will not result in a future interest crediting rate that is less than zero. If an event has occurred such that realization of full contract value for a particular investment contract is no longer probable (for example, a significant decline in creditworthiness of the contract issuer or wrapper provider), the investment contract shall no longer be considered fully benefit-responsive. The terms of the investment contract require all permitted participant-initiated transactions with the plan to occur at contract value with no conditions, limits, or restrictions. Permitted participant-initiated transactions are those transactions allowed by the plan, such as any of the following: Withdrawals for benefits Loans Transfers to other funds within the plan. An event that limits the ability of the plan to transact at contract value with the issuer and that also limits the ability of the plan to transact at contract value with the participants in the plan, such as any of the following, must be probable of not occurring: Premature termination of the contracts by the plan Plant closings Layoffs Plan termination Bankruptcy Mergers Early retirement incentives. The plan itself must allow participants reasonable access to their funds. If access to funds is substantially restricted by plan provisions, investment contracts held by those plans may not be considered to be fully benefit-responsive. For example, if plan participants are allowed access at contract value to all or a portion of their account balances only upon termination of their participation in the plan, it would not be considered reasonable access and, therefore, investment contracts held by that plan would generally not be deemed to be fully benefit-responsive. However, in plans with a single investment fund that allow reasonable access to assets by inactive participants, restrictions on access to assets by active participants consistent with the objective of the plan (for example, retirement or health and welfare benefits) will not affect the benefit responsiveness of the investment contracts held by those single-fund plans. Also, if a plan limits participants' access to their account balances to certain specified times during the plan year (for example, semiannually or quarterly) to control the administrative costs of the plan, that limitation generally would not affect the benefit responsiveness of the investment contracts held by that plan. In addition, administrative provisions that place short-term restrictions (for example, three or six months) on transfers to competing fixed-rate investment options to limit arbitrage among those investment options (equity wash provisions) would not affect a contract's benefit responsiveness.") \[see paragraph [965-325-35-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-3) for special provisions on the valuation of insurance contracts and paragraph [965-325-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) for special provisions on the valuation of fully benefit-responsive investment contracts\]), 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. ##### [325-965-35-1A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:b0446115217ef653ffbfa8cc9e00063a9f353514d7f43b278e959c7e75f50628 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If significant, the fair value of an investment shall be reduced by brokerage commissions and other costs normally incurred in a sale. ##### [325-965-35-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:9eeaecf563b76431a24ebebf6f476249dd59fb42b2f0769cdcd4a445824b51c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investment contracts held by defined benefit [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.") shall be reported at their fair values. ##### [325-965-35-2A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:76c9d0dfa0ef7a32f86dea0bd4e4321007dc331d9cae676a3827eb9adf86a412 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Insurance Contracts ##### [325-965-35-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:fbb53dbc3a51d439b7f714c2cd761af98d4aa7613c372ef3dff91ff94dd033bb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 pursuant to 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. ##### [325-965-35-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:8d2325b88b0b609b7928ab0c967652509efb7a64a1fe17ead1411dd9b3348aa1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [944-20-05-5 through 05-7](https://asc.understandingaccounting.org/asc/944/20/#944-20-05-5) for a discussion of the purpose, types, and a general characterization of insurance transactions. ##### [325-965-35-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:6a81424095750edb631b9bb87e3d4ef08ae1c7dc202d68f93060f64ccf74249b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [944-20-15-16 through 15-19](https://asc.understandingaccounting.org/asc/944/20/#944-20-15-16) 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. #### Investment Contracts ##### [325-965-35-6](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:49c9bfb5c85eb37c953c00f413832eb62cc121af32d71e84fcc8a0ed429ffedd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan holds multiple contracts, each contract shall be evaluated individually for benefit responsiveness. 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. ##### [325-965-35-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:53d6aa5951e244eb710e272204a0d8307095cd8edf9505bce0032c855e75f259 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Section 965-325-55 includes implementation guidance for the application of the definition of fully benefit-responsive for defined contribution health and welfare plan investments. ##### [325-965-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:74e27bd2f4cf51292eeec59b1143e55d8d90027c21c914fd8c3dbd3c65a58fba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Contract value is the relevant measure for the portion of the net assets available for benefits of a defined contribution health and welfare benefit plan attributable to fully benefit-responsive investment contracts. ##### [325-965-35-9](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:49.384Z to 2026-09-09T23:48:49.384Z Record version: sha256:7425261792dbcc776382a8c223984c6fced2b30d04430030fc1abb0fd14cd400 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/) (Part I).