{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/325/965/#55-implementation-guidance-and-illustrations","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":"325-965","subtopic_title":"Plan Accounting—Health and Welfare Benefit Plans","section":{"number":"55","label":"55 Implementation Guidance and Illustrations","anchor":"55-implementation-guidance-and-illustrations","is_sec":false,"groups":[{"block":null,"heading":"Implementation Guidance","paragraphs":[{"citation":"325-965-55-1","para":"55-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">Implementation guidance in Section <a altsource=\"GUID-0B738E42-F490-4D2E-BCF3-DC69B93B0482.ditamap\" class=\"ditamap\">962-325-55</a> illustrates the guidance in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/325/965/#325-965-35-6\" class=\"xref\">965-325-35-6 through 35-8</a></div> for the application of <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, and contract value reporting for health and welfare plan investments. <span class=\"sfragment\" id=\"sfr_23D287C2-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In each situation, value is determined within the context of the objectives of financial statements for a <a href=\"/glossary/d/#defined-contribution-plan\" class=\"term\" title=\"A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.\"><span>defined contribution plan</span></a>. The valuation must reflect the ability of the plan to pay benefits from the perspective of the participants. This value is then reflected on participants' statements to disclose the amount they can expect to receive when they exercise their rights to withdraw, borrow, or transfer funds under the terms of the plan. </span></span></div> </div>","snippet":"Implementation guidance in Section 962-325-55 illustrates the guidance in paragraphs 965-325-35-6 through 35-8 for the application of fair value less costs to sell, if significant, and contract value reporting for health…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4239593e912df8b9371bed17ca8bb819631f4e97b1464c03c9946216d50fb714","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}},{"citation":"325-965-55-2","para":"55-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">See paragraph <a href=\"/asc/325/962/#325-962-55-3\" class=\"xref\">962-325-55-3</a> for implementation guidance on a five-year public bond (or portfolio of bonds) that is guaranteed by a third party to have a fixed value at the end of three years.</div> </div>","snippet":"See paragraph 962-325-55-3 for implementation guidance on a five-year public bond (or portfolio of bonds) that is guaranteed by a third party to have a fixed value at the end of three years.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:21395de4efaff423e3eb9557bbb33d4391517f2128dc28725c8c13ddac6c77ae","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}},{"citation":"325-965-55-3","para":"55-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_23D288EE-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/325/962/#325-962-55-5\" class=\"xref\">962-325-55-5 through 55-7</a></div> for implementation guidance on a <a href=\"/glossary/f/#fully-benefit-responsive-investment-contract\" class=\"term\" title=\"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.\"><span>fully benefit-responsive investment contract</span></a>.</span></span> </div> </div>","snippet":"See paragraphs 962-325-55-5 through 55-7 for implementation guidance on a fully benefit-responsive investment contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7559136cfc465014b3f583f3fc22f0584474c5b4d12fc42eaf2defa9fa43dc8e","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}},{"citation":"325-965-55-4","para":"55-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">See paragraph <a href=\"/asc/325/962/#325-962-55-8\" class=\"xref\">962-325-55-8</a> for implementation guidance on a five-year, non-benefit-responsive investment contract that has no liquid market for trading.</div> </div>","snippet":"See paragraph 962-325-55-8 for implementation guidance on a five-year, non-benefit-responsive investment contract that has no liquid market for trading.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:724515e09797a2f226bfe4ccc8029c002627eccf5862b74d638bcbcee985644a","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}},{"citation":"325-965-55-5","para":"55-5","html":"<div class=\"asc-body\"><div class=\"norm-text\">See paragraph <a href=\"/asc/325/962/#325-962-55-10\" class=\"xref\">962-325-55-10</a> for implementation guidance on a benefit-responsive participating separate account investment contract.</div> </div>","snippet":"See paragraph 962-325-55-10 for implementation guidance on a benefit-responsive participating separate account investment contract.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:12a692c037b9dcc578b370ed7f868995b02d9449db8da3b13fa367a1cd8648ca","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}},{"citation":"325-965-55-6","para":"55-6","html":"<div class=\"asc-body\"><div class=\"norm-text\">See paragraph <a href=\"/asc/325/962/#325-962-55-12\" class=\"xref\">962-325-55-12</a> for implementation guidance on a synthetic contract (managed type).</div> </div>","snippet":"See paragraph 962-325-55-12 for implementation guidance on a synthetic contract (managed type).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1a0d2aa0c0f7c043867ac87d3ba9fe2ef6bf62b5a947c85ccfb9c1412a8e50c1","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}},{"citation":"325-965-55-7","para":"55-7","html":"<div class=\"asc-body\"><div class=\"norm-text\">See paragraph <a href=\"/asc/325/962/#325-962-55-13\" class=\"xref\">962-325-55-13</a> for implementation guidance on a synthetic investment contract (repurchase type).</div> </div>","snippet":"See paragraph 962-325-55-13 for implementation guidance on a synthetic investment contract (repurchase type).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f9fcb622882ad2a72d81923a1356ff9eeddba5a18e26b05f02b18f170e19d758","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5295ae32784f564b34a27f9ee77ba4c50bbcea9d254f7247696a6e3b8af7ec8e","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}},{"block":null,"heading":"Illustrations","paragraphs":[{"citation":"325-965-55-8","para":"55-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_23D28A53-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">See Example 2 (paragraph <a href=\"/asc/325/962/#325-962-55-17\" class=\"xref\">962-325-55-17</a>) for financial statements that illustrate certain applications of the provisions of this Subtopic that apply to the annual financial statements of a defined contribution plan. </span></span> </div> </div>","snippet":"See Example 2 (paragraph 962-325-55-17) for financial statements that illustrate certain applications of the provisions of this Subtopic that apply to the annual financial statements of a defined contribution plan.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c5d10411f317beca4614eaa1ce4f05d1a59beffce9f5a171760b9cdc5da1ee80","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147477731","source_sha256":"d85bd821924cd09198fd770ba17c5155b0fca3342814cc02a13274c5dabdcde7"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bdf1c33c249167ec4b4296af2ac9ac5f180971ae50f1ed3aa1641230252358e9","downloaded_from":"2026-09-09T23:48:56.941Z","last_downloaded_at":"2026-09-09T23:48:56.941Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not 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