# ASC 360-960: Property, Plant, and Equipment — Plan Accounting—Defined Benefit Pension Plans Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/360/960/) 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): 2026-09-10T00:11:09.859Z to 2026-09-10T00:11:20.525Z Record version: sha256:cc12a1e3bf691a576a2453170ed4bb3d8213c256204612cb23642ddd375a74ed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-960: Property, Plant, and Equipment — Plan Accounting—Defined Benefit Pension Plans ### Machine-generated study aids ```json { "summary": "This Subtopic governs how a defined benefit pension plan accounts for property, plant, and equipment it uses in operating the plan (buildings, equipment, furniture and fixtures, leasehold improvements). Unlike plan investments, which are generally reported at fair value, these operating assets are presented at cost less accumulated depreciation or amortization (360-960-35-1). The rationale is that expenditures for operating assets are advance payments for future administrative services rather than investments expected to generate cash flows to pay benefits (360-960-35-2).", "key_points": [ "The Subtopic provides guidance on accounting for property, plant, and equipment of defined benefit pension plans (360-960-05-1).", "Scope follows the Overall Subtopic scope in Section 960-10-15 (360-960-15-1).", "Plan assets used in plan operations are presented at cost less accumulated depreciation or amortization (360-960-35-1).", "Operating assets may include buildings, equipment, furniture and fixtures, and leasehold improvements (360-960-35-1).", "Expenditures for operating assets are in the nature of advance payments for future administrative services, distinguishing them from investments expected to generate future cash flows used to provide benefits (360-960-35-2)." ], "categories": [ "Subsequent measurement", "Inventory and PP&E", "Compensation and benefits", "Presentation" ], "audience_level": "intermediate", "student_note": "The common misunderstanding is assuming everything a pension plan holds is carried at fair value; assets the plan actually uses to run itself (its office building, furniture, leasehold improvements) stay at historical cost less depreciation because they are prepaid administrative services, not benefit-generating investments.", "related_topics": [ "960-10", "960-325", "960-205", "360-10", "962-360" ], "key_concepts": [ "defined benefit pension plan", "operating assets", "cost less accumulated depreciation", "plan investments at fair value", "leasehold improvements", "administrative services", "plan financial statements" ] } ``` Source downloaded (UTC): 2026-09-10T00:11:09.859Z to 2026-09-10T00:11:09.859Z Record version: sha256:f4d3b508f28b77b467bff4d9ce947ec2610143aa326b993e0ee752f01cfaefd9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-960-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/360/960/#00-status) SEC content: no ##### [360-960-00-1](https://asc.understandingaccounting.org/asc/360/960/#360-960-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:09.859Z to 2026-09-10T00:11:09.859Z Record version: sha256:c21d4af0695188407b4d62b80bc8b9441c9d94c10fc44df506d8d69201326cb8 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
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
960-360-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-360-35-2AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T00:11:12.214Z to 2026-09-10T00:11:12.214Z Record version: sha256:e92d19ad63c7ed2306725e19802f70e5af0033ddd0efb9201333631824b2196e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-960-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/360/960/#05-overview-and-background) SEC content: no ##### [360-960-05-1](https://asc.understandingaccounting.org/asc/360/960/#360-960-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:12.214Z to 2026-09-10T00:11:12.214Z Record version: sha256:cfffd9455b0a0d93973562b36dd164f20c72cf48d327a2d40d9a8286ab97e566 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on accounting for property, plant, and equipment for [defined benefit pension 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.)"). Source downloaded (UTC): 2026-09-10T00:11:14.659Z to 2026-09-10T00:11:14.659Z Record version: sha256:ce8fc6b519fba4de7a3a8157c89135f097101a84f998eebfbebde4383ed0a62b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-960-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/360/960/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [360-960-15-1](https://asc.understandingaccounting.org/asc/360/960/#360-960-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:14.659Z to 2026-09-10T00:11:14.659Z Record version: sha256:20012f29465bebf8464b498033699c1fa83ae35bc9a13ce63b6a555e5e7fc3f2 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 960-10-15. Source downloaded (UTC): 2026-09-10T00:11:20.525Z to 2026-09-10T00:11:20.525Z Record version: sha256:8a43dce452d917ad04ce5c1778d20d2d5e234cdd1b8492da7badc09e2423ca06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 360-960-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/360/960/#35-subsequent-measurement) SEC content: no ##### [360-960-35-1](https://asc.understandingaccounting.org/asc/360/960/#360-960-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:20.525Z to 2026-09-10T00:11:20.525Z Record version: sha256:5c745c1ed6c0ab4afcc01b1803202fbae056aefd3181ac4031833e01eb3bf4aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan assets used in plan operations shall be presented at cost less accumulated depreciation or amortization and may consist of, among others, any of the following: 1. a Buildings 2. b Equipment 3. c Furniture and fixtures 4. d Leasehold improvements. ##### [360-960-35-2](https://asc.understandingaccounting.org/asc/360/960/#360-960-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:11:20.525Z to 2026-09-10T00:11:20.525Z Record version: sha256:18322765e0f099821bd03032e7b0b45aa1d3f4e237e8d10aafc8955268f935db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Expenditures for operating assets are in the nature of advance payments for future administrative services. In that respect they differ from investments that are expected to generate future cash flows that will be used to provide [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.").