Plan Accounting—Defined Contribution Pension Plans

This subtopic governs how a defined contribution pension plan accounts for property, plant, and equipment that the plan itself uses in its operations. The core rule is that such operating assets — buildings, equipment, furniture and fixtures, and leasehold improvements — are reported at cost less accumulated depreciation or amortization, rather than at fair value like investment assets.

For students. Exam trap: students assume everything a benefit plan holds is carried at fair value; assets the plan uses to run itself (its office building, computers, leasehold improvements) are instead carried at historical cost less accumulated depreciation or amortization.

Machine-generated study aid for ASC 360-962. Check the source paragraphs below.