# ASC 325-965: Investments—Other — Plan Accounting—Health and Welfare Benefit Plans Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/325/965/) 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): 2026-09-09T23:48:36.902Z to 2026-09-09T23:48:56.941Z Record version: sha256:7c629c6be8a9211f7ec8d1c9860e6795b883e47da9068161896dbccc7d7c204a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965: Investments—Other — Plan Accounting—Health and Welfare Benefit Plans ### Machine-generated study aids ```json { "summary": "ASC 325-965 (parallel to 965-325) governs how health and welfare benefit plans measure, present, and disclose their investments and insurance contracts. The core rule is that plan investments are reported at fair value less costs to sell, if significant, at the financial statement date, except that insurance contracts are presented as reported in the plan's ERISA Form 5500 filing (fair value or contract value) and fully benefit-responsive investment contracts of defined contribution plans are measured at contract value. Presentation is by general type of investment, with specified disclosures for benefit-responsive contracts and for plan interests in master trusts.", "key_points": [ "Plan investments — equity and debt securities, real estate, and other investments other than insurance contracts and fully benefit-responsive investment contracts — are reported at fair value less costs to sell, if significant, reduced by brokerage commissions and other normal selling costs (325-965-35-1; 35-1A).", "Insurance contracts as defined in Subtopic 944-20 are presented the same way as in the plan's ERISA annual report — either fair value or contract value determined by the insurance entity — and non-ERISA plans report as if subject to the Act (325-965-35-3); investment contracts held by defined benefit health and welfare plans are reported at fair value (325-965-35-2).", "Contract value is the relevant measure for the portion of net assets available for benefits of a defined contribution health and welfare plan attributable to fully benefit-responsive investment contracts (325-965-35-8), with each contract evaluated individually and prospective-rate contracts still qualifying if the crediting rate cannot be less than zero (325-965-35-6).", "A plan whose fiscal year-end is not a month-end may elect to measure investments and investment-related accounts as of the closest month-end, applied consistently, and must disclose the election, the measurement date, and any contributions, distributions, or significant events between that date and fiscal year-end (325-965-35-2A; 50-1B; 50-1C).", "Investments measured at fair value must be presented by general type — registered investment companies, government securities, short-term securities, corporate bonds, common stocks, mortgages, real estate — and in enough detail to show whether fair values used quoted prices in an active market (325-965-45-1; 45-2).", "For fully benefit-responsive investment contracts, the plan discloses in the aggregate the nature of the contracts by type, events limiting its ability to transact at contract value (with a statement that their occurrence is not probable), events allowing issuers to terminate at other than contract value, and total contract value of each type (325-965-50-2).", "Master trust disclosures require net appreciation/depreciation in fair value and investment income, the basis for allocating net assets and investment income, the plan's percentage interest if undivided, master trust investments by general type, and the plan's dollar interest in each type and in other master trust assets and liabilities (325-965-50-5 through 50-9)." ], "categories": [ "Subsequent measurement", "Fair value", "Disclosure", "Industry-specific" ], "audience_level": "advanced", "student_note": "Exam traps here are the exceptions to fair value: insurance contracts follow whatever basis the plan uses on its Form 5500, and fully benefit-responsive investment contracts in defined contribution plans are carried at contract value (not fair value with an adjustment, which ASU 2015-12 eliminated). Also note the \"less costs to sell, if significant\" qualifier — health and welfare plan investments are not simply reported at fair value.", "related_topics": [ "965-325", "962-325", "820-10", "944-20", "965-10", "450" ], "key_concepts": [ "health and welfare benefit plan", "fair value less costs to sell", "fully benefit-responsive investment contract", "contract value", "insurance contract", "master trust interest", "net assets available for benefits", "defined contribution plan" ] } ``` Source downloaded (UTC): 2026-09-09T23:48:36.902Z to 2026-09-09T23:48:36.902Z Record version: sha256:c250104dddd4618cfce3eed640f6010c1b0d36bd8aa2a16be19311aef907419e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/325/965/#00-status) SEC content: no ##### [325-965-00-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-00-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:36.902Z to 2026-09-09T23:48:36.902Z Record version: sha256:565d3490991e0edfcdc5070efe551a8b8fef290bb80501bc120f30c90214b6fb 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
Benefit-Responsive Investment ContractSupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Contract Value of a Fully Benefit-Responsive Investment ContractSupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
Contract Value of a Fully Benefit-Responsive Investment ContractAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution PlanAmendedAccounting Standards Update No. 2014-0603/14/2014
Fair Value (2nd def.)SupersededAccounting Standards Update No. 2012-0410/01/2012
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
Net Assets Available for BenefitsAddedAccounting Standards Update No. 2012-0410/01/2012
Plan Assets (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Plan Assets (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
965-325-05-2AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-35-1AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-35-1AAddedAccounting Standards Update No. 2012-0410/01/2012
965-325-35-2AAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
965-325-35-6AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-35-6AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-35-8AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-35-9SupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-45-2AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-45-2AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-45-2AmendedAccounting Standards Update No. 2013-0806/07/2013
965-325-45-2AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-50-1AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-50-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-50-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-50-1ASupersededAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-50-1AAddedAccounting Standards Update No. 2012-0410/01/2012
965-325-50-1BAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
965-325-50-1CAddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
965-325-50-2AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-50-3SupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-50-3AmendedAccounting Standards Update No. 2014-0603/14/2014
965-325-50-4AddedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-325-50-5 through 50-9
AddedAccounting Standards Update No. 2017-0602/27/2017
965-325-55-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-325-55-3AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-325-55-8AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:c2a2338c42aec145e5ce6d5104eb09bddc3c24e98d7f9c25852511d677a578d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/325/965/#05-overview-and-background) SEC content: no ##### [325-965-05-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:f1460ab6ec09fe34042c770cf01051d999e5ec66f1bd0e5a8538b44b0dfec383 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on investment and insurance contracts 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."). ##### [325-965-05-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:07b28e6216ccd6f12a66a6cdd384dc69a1d2dcc9a63212772d03c22f2392d688 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Defined benefit plans](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)") provide participants with a determinable benefit based on a formula provided for in the plans, whereas [defined contribution plans](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "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.") provide benefits based on amounts contributed to an employee's individual account plus or minus all of the following: 1. a Forfeitures 2. b Investment experience 3. c Administrative expenses. ##### [325-965-05-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:4b0dd20c557a31ec55e36cf99f903144d6aced653a3860dc1977d710c00bcaa3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In such defined contribution plans, plan participants have a vested interest in monitoring the financial condition and operations of the plan since they bear investment risk under these plans, and plan transactions can directly affect their benefits (for example, investment mix, and risk and return). ##### [325-965-05-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-05-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:38.968Z to 2026-09-09T23:48:38.968Z Record version: sha256:77b68ab8f74f5beed34ecf66f528a8d69979dd6b81e3e9b0b0d4cf9313197609 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Internal Revenue Code generally requires that all investment experience under defined contribution plans be allocated to individual account balances. Source downloaded (UTC): 2026-09-09T23:48:40.710Z to 2026-09-09T23:48:40.710Z Record version: sha256:6a897243842aa2444bed4f08ca1eb0f70b11730d350f331d36ba6751e4c13a53 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/325/965/#10-objectives) SEC content: no ##### [325-965-10-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-10-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:40.710Z to 2026-09-09T23:48:40.710Z Record version: sha256:c9e7f333f7d0a3985d126a05a5e3a2c1ebed49051f95d6e17ed35b356e606c14 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan assets 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.") shall be measured and reported at values that are meaningful to financial statement users, including plan participants. Source downloaded (UTC): 2026-09-09T23:48:44.472Z to 2026-09-09T23:48:44.472Z Record version: sha256:add015af9309fadb4cfdab2bf6a855261257022ffc0314fa7490dfd77d2b3478 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/325/965/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [325-965-15-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-15-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:44.472Z to 2026-09-09T23:48:44.472Z Record version: sha256:38b6724deaa58f3a6793e39ae1c666a6c5510b2a46f5c51a2ec35a027b788a1e 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): 2026-09-09T23:48:49.384Z 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). Source downloaded (UTC): 2026-09-09T23:48:51.726Z to 2026-09-09T23:48:51.726Z Record version: sha256:526e6bbc0fba3db9da70c563c7e44b4ef19187d6bd2cbc16a131873925314306 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/325/965/#45-other-presentation-matters) SEC content: no ##### [325-965-45-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-45-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:51.726Z to 2026-09-09T23:48:51.726Z Record version: sha256:a7543e7b25c167a881909f3c614c66a6b4e205aef79e21152f551a3b154751df Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information regarding a plan's investments shall be presented in enough detail to identify the types of investments and shall indicate whether reported fair values have been measured by quoted prices in an active market or have been determined otherwise (paragraph [965-325-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2) specifies additional disclosures related to investments). ##### [325-965-45-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-45-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:51.726Z to 2026-09-09T23:48:51.726Z Record version: sha256:b26e9d1b7eb4b10cb60d940ad0730e709e3d3dd1add833d208df13d564e7bb3c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Investments measured using fair value in the statement of net assets available for benefits or in the notes shall be presented by general type, including the following: 1. a Registered investment companies (also known as mutual funds) 2. b Government securities 3. c Short-term securities 4. d Corporate bonds 5. e Common stocks 6. f Mortgages 7. g [Subparagraph superseded by Accounting Standards Update No. 2012-04](https://asc.understandingaccounting.org/updates/asu-2012-04/). 8. h Real estate. For the presentation of [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."), which are measured at contract value, see paragraphs [965-325-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) and [965-325-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2). Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:c3882f0720c2ee2a0b4c5cc947f9e8089c6481448b7009547078e23d3417d0bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/325/965/#50-disclosure) SEC content: no ##### [325-965-50-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:6ca87c2a6355e74102d8f4f261bc2347498b56bcccabc9d08a730adc8a4d29b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of a [health and welfare benefit plan's](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.") accounting policies shall include a description of the valuation techniques and inputs used to measure 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 (as required by Section 820-10-50) and a description of the methods and significant assumptions used to measure the reported value of insurance contracts. However, health and welfare benefit plans are exempt from the requirements in paragraph [820-10-50-2B(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-2B) to disaggregate assets by nature, characteristics, and risks. The disclosures of information by classes of assets required by Section 820-10-50 shall be provided by general type of plan assets consistent with paragraph [965-325-45-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-45-2). ##### [325-965-50-1A](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1A) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:f485a497584ad0db283f74e40d186747dbd2d398aee2b70a265eb79cf8aaaca5 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 II). ##### [325-965-50-1B](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1B) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:a6af4cb05d232053d667981c4abf8e80f68a4974a5457b8ced9f3612459e3131 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If applicable, a plan shall disclose the accounting policy election to measure investments and investment-related accounts using the month-end that is closest to the plan's fiscal year-end in accordance with paragraph [965-325-35-2A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2A) and the month-end measurement date. ##### [325-965-50-1C](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-1C) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:150c6a65fc7834ff0463eabff8e6556303c12e482ae68cb3f17ef0a5db847f45 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a plan measures investments and investment-related accounts in accordance with paragraph [965-325-35-2A](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-2A) and contributions, distributions, and/or significant events (such as a plan amendment, a merger, or a termination) occur between the month-end date used to measure investments and investment-related accounts and the plan's fiscal year-end, the plan shall disclose the amounts of those contributions, distributions, and/or significant events. #### Fully Benefit-Responsive Investment Contracts ##### [325-965-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:87e3622e1feea67d95936a14793d47fc2433a9dbdd50dd335e9849ac1f5c810d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Health and welfare plans shall disclose the following in connection with [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."), in the aggregate: 1. a A description of the nature of those investment contracts (including how they operate) by the type of investment contract (for example, synthetic investment contracts or traditional investment contracts). 1. 1 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 2. 2 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 3. 3 [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 2. b [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 3. c [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 4. d A description of the events that limit the ability of the plan to transact at contract value with the issuer, including a statement that the occurrence of each of those events that would limit the plan's ability to transact at contract value with participants in the plan is not probable of occurring (the term _probable_ is used in this Subtopic consistent with its use in Topic 450). Such events might include, among others, all of the following: 1. 1 Premature termination of the contracts by the plan 2. 2 Plant closings 3. 3 Layoffs 4. 4 Plan termination 5. 5 Bankruptcy 6. 6 Mergers 7. 7 Early retirement incentives. 5. e A description of the events and circumstances that would allow issuers to terminate fully benefit-responsive investment contracts with the plan and settle at an amount different from contract value. 6. f The total contract value of each type of investment contract (for example, synthetic investment contracts or traditional investment contracts). ##### [325-965-50-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:c5dbaa2f8b9a23800e5e1fb305c1f42fa6a92061ec36080d6cb46d1d300be680 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). #### Investments Measured Using the Net Asset Value per Share Practical Expedient ##### [325-965-50-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:cf5c7230e814f7cbae3ee5213a17ce169194b24a93831edb58e38717293fee4a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an investment is measured using the net asset value per share (or its equivalent) practical expedient in paragraph [820-10-35-59](https://asc.understandingaccounting.org/asc/820/10/#820-10-35-59) and that investment is in a fund that files U.S. Department of Labor Form 5500 as a direct filing entity, disclosure of that investment's significant investment strategy, as discussed in paragraph [820-10-50-6A(a)](https://asc.understandingaccounting.org/asc/820/10/#820-10-50-6A), is not required. #### Interests in Master Trusts ##### [325-965-50-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:2c265f863e40c8eb67d268ab9cfe1f509743d3e9399ed035946ad86fcb680855 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the following in the notes to financial statements for each period for which a statement of changes in net assets available for benefits is presented: 1. a Net appreciation or depreciation in the fair value of investments of the master trust. Net appreciation or depreciation includes realized gains and losses on investments that were both purchased and sold during the period as well as unrealized appreciation or depreciation of the investments held at year-end. 2. b Investment income (exclusive of (a)). ##### [325-965-50-6](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:7956785f40fc153c0e1b57fb6b4c8bf88464e2ae4ed6847e048c09e08ecf17cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall include in the notes to financial statements both of the following: 1. a Description of the basis used to allocate both of the following: 1. 1 Net assets 2. 2 Total investment income. See paragraph [965-325-50-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-5) for the components of total investment income. 2. b For a plan with an undivided interest in the master trust (that is, when the plan has a proportionate, rather than specific, interest in the master trust), its percentage interest in the master trust as of the date of each statement of net assets available for benefits presented. ##### [325-965-50-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:2325cb9f12dd3a2cabc310b51d8f5f6c3b144562597c52e2d70151a82fad2d46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the notes to financial statements a plan shall include the investments of a master trust measured using fair value presented by general type of investment, such as the following, as of the date of each statement of net assets available for benefits presented: 1. a Registered investment companies (for example, mutual funds) 2. b Government securities 3. c Common-collective trusts 4. d Pooled separate accounts 5. e Short-term securities 6. f Corporate bonds 7. g Common stocks 8. h Mortgages 9. i Real estate. For the presentation of [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."), which are measured at contract value, see paragraphs [965-325-35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-8) and [965-325-50-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-2). ##### [325-965-50-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:47f1bbd7d5f9102fc9900cb91adc59ea46eb2ae2e888469a29ba046e85287ecd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan shall disclose the dollar amount of its interest in each general type of investment held by the master trust, consistent with the disclosure required by paragraph [965-325-50-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-7). See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. ##### [325-965-50-9](https://asc.understandingaccounting.org/asc/325/965/#325-965-50-9) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:55.041Z to 2026-09-09T23:48:55.041Z Record version: sha256:0d95666adfc510f7a892a7237e769fe985939bc6f2791aaf5cd647eb8489a161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan also shall disclose the master trust's other assets and liabilities and the dollar amount of the plan's interest in each of those other assets and liabilities. Examples of those balances include the following: 1. a Amounts due from brokers for securities sold 2. b Amounts due to brokers for securities purchased 3. c Receivables relating to derivatives 4. d Payables relating to derivatives 5. e Accrued interest and dividends 6. f Accrued expenses. See paragraph [962-325-55-18](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-18) for an example of this disclosure. Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:9b1c0f3a64bff96fadee9e05022071743806afd3deaee7054d5f3d184ab5ef64 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 325-965-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/325/965/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [325-965-55-1](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-1) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:4239593e912df8b9371bed17ca8bb819631f4e97b1464c03c9946216d50fb714 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Implementation guidance in Section 962-325-55 illustrates the guidance in paragraphs [965-325-35-6 through 35-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-35-6) for the application of [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, and contract value reporting for health and welfare plan investments. In each situation, value is determined within the context of the objectives of financial statements for a [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "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."). 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. ##### [325-965-55-2](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-2) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:21395de4efaff423e3eb9557bbb33d4391517f2128dc28725c8c13ddac6c77ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-3](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-3) 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. ##### [325-965-55-3](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-3) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:7559136cfc465014b3f583f3fc22f0584474c5b4d12fc42eaf2defa9fa43dc8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraphs [962-325-55-5 through 55-7](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-5) for implementation guidance on a [fully benefit-responsive investment contract](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."). ##### [325-965-55-4](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-4) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:724515e09797a2f226bfe4ccc8029c002627eccf5862b74d638bcbcee985644a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-8](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-8) for implementation guidance on a five-year, non-benefit-responsive investment contract that has no liquid market for trading. ##### [325-965-55-5](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-5) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:12a692c037b9dcc578b370ed7f868995b02d9449db8da3b13fa367a1cd8648ca Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-10](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-10) for implementation guidance on a benefit-responsive participating separate account investment contract. ##### [325-965-55-6](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-6) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:1a0d2aa0c0f7c043867ac87d3ba9fe2ef6bf62b5a947c85ccfb9c1412a8e50c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-12](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-12) for implementation guidance on a synthetic contract (managed type). ##### [325-965-55-7](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-7) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:f9fcb622882ad2a72d81923a1356ff9eeddba5a18e26b05f02b18f170e19d758 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [962-325-55-13](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-13) for implementation guidance on a synthetic investment contract (repurchase type). #### Illustrations ##### [325-965-55-8](https://asc.understandingaccounting.org/asc/325/965/#325-965-55-8) Pending content: no Source downloaded (UTC): 2026-09-09T23:48:56.941Z to 2026-09-09T23:48:56.941Z Record version: sha256:c5d10411f317beca4614eaa1ce4f05d1a59beffce9f5a171760b9cdc5da1ee80 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 2 (paragraph [962-325-55-17](https://asc.understandingaccounting.org/asc/325/962/#325-962-55-17)) 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.