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The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Defined Contribution PlanAddedAccounting Standards Update No. 2018-0907/16/2018
962-360-05-1AddedAccounting Standards Update No. 2018-0907/16/2018
962-360-15-1AddedAccounting Standards Update No. 2018-0907/16/2018
962-360-35-1AddedAccounting Standards Update No. 2018-0907/16/2018
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This Subtopic provides guidance on accounting for property, plant, and equipment for defined contribution plans.
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This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic; see Section 962-10-15.
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Plan assets used in plan operations shall be reported at cost less accumulated depreciation or amortization and may consist of any of the following:
  1. a
    Buildings
  2. b
    Equipment
  3. c
    Furniture and fixtures
  4. d
    Leasehold improvements.
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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.","key_points":["This Subtopic provides guidance on accounting for property, plant, and equipment for defined contribution plans (360-962-05-1).","Its scope is the same as the Overall Subtopic, Section 962-10-15 (360-962-15-1).","Plan assets used in plan operations shall be reported at cost less accumulated depreciation or amortization (360-962-35-1).","Operating assets covered may include buildings, equipment, furniture and fixtures, and leasehold improvements (360-962-35-1(a) through (d)).","The cost-less-depreciation model applies to assets used in operating the plan, distinguishing them from the plan's investments, which are measured under the Topic 962 investment guidance."],"categories":["Subsequent measurement","Inventory and PP&E","Compensation and benefits","Industry-specific"],"audience_level":"introductory","student_note":"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.","related_topics":["962-10","962-325","360-10","960","965","962-40"],"key_concepts":["defined contribution plan","operating assets","property, plant, and equipment","cost less accumulated depreciation","leasehold improvements","plan 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