Compensation—General

ASC 710 (Compensation—General) is the residual compensation topic covering arrangements that fall outside pensions/OPEB (715), postemployment benefits (712), and stock compensation (718). Subtopic 710-10 sets the core rules: accrue compensated absences when the four conditions of 710-10-25-1 are met (services rendered, rights vest or accumulate, payment probable, amount reasonably estimable, with an exception permitting nonaccrual of nonvesting accumulating sick pay under 710-10-25-7); accrue individual deferred compensation contracts systematically over the service period so the accrual equals the present value of expected future benefits at the full eligibility date (710-10-30-1); limit deferral of union-contract lump-sum payments to situations where a future benefit from a lower base wage rate is clear (710-10-25-13); and classify rabbi trust employer stock as treasury stock with the deferred compensation obligation as equity or a liability depending on plan type (Plans A–D, 710-10-25-16 through 25-18). The industry overlays complete the picture: 710-980 requires regulated entities to accrue compensated-absence liabilities even when the regulator allows the cost only as paid, recording an offsetting regulatory asset for the probable future increased revenue (710-980-25-2), while 710-908 (Airlines) contains only "Section not used" placeholders, so airlines apply the general 710-10 guidance. The unifying idea is that compensation obligations are accrued as employees render the services that earn them, regardless of when cash is paid or recovered in rates.

Subtopics

1. 10Overall64 ¶

   ASC 710-10 is the catch-all compensation subtopic for arrangements outside pensions/OPEB (715), postemployment benefits (712), and stock compensation (718). Its General Subsections require accrual of a liability for compensated absences when four conditions are met (services already rendered, rights vest or accumulate, payment probable, amount reasonably estimable), prescribe accrual of individual deferred compensation contracts over the service period to the full eligibility date at present value, and limit deferral of union-contract lump-sum payments. The Deferred Compensation—Rabbi Trusts Subsections classify trust-held employer stock as treasury stock and classify the deferred compensation obligation as equity or a liability depending on the plan's settlement and diversification features (Plans A–D).

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2. 908Airlines4 ¶

   ASC 710-908 is the Airlines industry sub-subtopic of Compensation—General, but every section shown (05 Overview, 15 Scope, 25 Recognition, 30 Initial Measurement) is marked "Section not used," meaning the Codification carries no incremental airline-specific guidance in those sections. A reader must therefore apply the general compensation guidance in ASC 710 (and any airline guidance located elsewhere in ASC 908) to airline compensation arrangements.

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3. 980Regulated Operations4 ¶

   This Subtopic addresses compensated absences and other compensation-related costs for entities with regulated operations. Even though a regulator may allow such compensation in rates only when paid, the entity must still accrue the liability under Topic 710 because regulator rate actions cannot eliminate obligations the regulator did not impose. Because the cost will be recoverable in future rates as paid, the entity simultaneously records a regulatory asset representing the probable future increased revenue.

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