{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/710/10/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"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.","topic":"710","topic_title":"Compensation—General","subtopic":"710-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"710-10-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Codification contains several Topics for compensation-related costs. The Topics include:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Compensation—General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Compensation—Nonretirement Postemployment Benefits</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Compensation—Retirement Benefits</div></li><li class=\"li-norm\"><span class=\"linum\">d</span><div class=\"p\">Compensation—Stock Compensation.</div></li></ol></div></div>","snippet":"The Codification contains several Topics for compensation-related costs. The Topics include:\n(a) Compensation—General\n(b) Compensation—Nonretirement Postemployment Benefits\n(c) Compensation—Retirement Benefits\n(d) Compen…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:36c5f4ffcd522d1992ef53ea602f50a6d5b7539bffee2814cbb26bf77128559d","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"citation":"710-10-05-2","para":"05-2","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Topic (Compensation—General) contains only the Overall Subtopic and provides guidance on general compensation-related matters that are not within the scope of the Topics noted in the preceding paragraph.</div></div>","snippet":"This Topic (Compensation—General) contains only the Overall Subtopic and provides guidance on general compensation-related matters that are not within the scope of the Topics noted in the preceding paragraph.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4091eed37555a7d6e81cda2ce6f5b369f4fe70298522160b521278418262eebc","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"citation":"710-10-05-3","para":"05-3","html":"<div class=\"asc-body\"><div class=\"norm-text\">The Overall Subtopic contains the following two Subsections to segregate the guidance:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">General</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Deferred Compensation—Rabbi Trusts.</div></li></ol></div></div>","snippet":"The Overall Subtopic contains the following two Subsections to segregate the guidance:\n(a) General\n(b) Deferred Compensation—Rabbi Trusts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19bc6c936abd20a927c63c14fb263a5a6200bd4880f3754475c50fb14164a0ee","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"citation":"710-10-05-4","para":"05-4","html":"<div class=\"asc-body\"><div class=\"norm-text\">The General Subsections provide guidance on the following:<ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\">Compensated absences</div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\">Deferred compensation arrangements</div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\">Lump-sum payments under union contracts.</div></li></ol></div></div>","snippet":"The General Subsections provide guidance on the following:\n(a) Compensated absences\n(b) Deferred compensation arrangements\n(c) Lump-sum payments under union contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0e9fccf587c2c18a52bfd7ca89324cc947151651683410547d9743c977aafda2","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9a1f9c0756c18a1843000c9250a91de1e3e7fcd00445c04404db0b3c709f840f","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"block":null,"heading":"Compensated Absences","paragraphs":[{"citation":"710-10-05-5","para":"05-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_B9205AE6-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The General Subsections of this Subtopic provide guidance for accruing a liability for employees' rights to receive compensation for future absences when certain conditions are met, </span></span><span class=\"sfragment\" id=\"sfr_B9205BE4-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">for example, vacation benefits, future sick pay benefits, holidays, certain sabbatical leaves and similar compensated absences. </span></span></div></div>","snippet":"The General Subsections of this Subtopic provide guidance for accruing a liability for employees' rights to receive compensation for future absences when certain conditions are met, for example, vacation benefits, future…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c93905dca51a7fceff1e3877b800fbe98f90ccb162b070575da17cce902c8099","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:dc3736ec247d596e5c4b7ca94f3db705f9b7250f78f0e8a3ebabe446c5a5c3da","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"block":null,"heading":"Deferred Compensation Arrangements","paragraphs":[{"citation":"710-10-05-6","para":"05-6","html":"<div class=\"asc-body\"><div class=\"norm-text\">The General Subsections of this Subtopic provide guidance on deferred compensation arrangements that are individual employment contracts and are not in substance a pension or other postretirement benefit plan as described in paragraph <a href=\"/asc/715/10/#715-10-15-3\" class=\"xref\">715-10-15-3</a>.</div></div>","snippet":"The General Subsections of this Subtopic provide guidance on deferred compensation arrangements that are individual employment contracts and are not in substance a pension or other postretirement benefit plan as describe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f3b00367d9b60a8edb2d10504df0d51f48974c46a802f597f75d521631446e93","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d21e7f1b5d55e6c151d6d42bff125de2d28b3bfca30883ef2ce3b3d60959ab10","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"block":null,"heading":"Lump-Sum Payments Under Union Contracts","paragraphs":[{"citation":"710-10-05-7","para":"05-7","html":"<div class=\"asc-body\"><div class=\"norm-text\">The General Subsections of this Subtopic provide recognition guidance for lump-sum payments received by union employees upon signing new union contracts.</div></div>","snippet":"The General Subsections of this Subtopic provide recognition guidance for lump-sum payments received by union employees upon signing new union contracts.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d1379620ad358733213a647d8b1da99bb0f3bc0a83b881cfce30a7772860925a","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:042192383131f5045960233b276e8df2e9ccc5a06a577a4b8332e645cecf38aa","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"block":"Deferred Compensation—Rabbi Trusts","heading":null,"paragraphs":[{"citation":"710-10-05-8","para":"05-8","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_B927A271-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Deferred Compensation—Rabbi Trusts Subsections of this Subtopic address the accounting for deferred compensation arrangements where amounts earned by an employee are invested in the stock of the employer and placed in a <a href=\"/glossary/r/#rabbi-trusts\" class=\"term\" title=\"Rabbi trusts are grantor trusts generally set up to fund compensation for a select group of management or highly paid executives. To qualify as a rabbi trust for income tax purposes, the terms of the trust agreement must explicitly state that the assets of the trust are available to satisfy the claims of general creditors in the event of bankruptcy of the employer.\"><span>rabbi trust</span></a>. </span></span><span class=\"sfragment\" id=\"sfr_B927A389-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> Certain of those plans allow the employee to immediately diversify into nonemployer securities or to diversify after a holding period (for example, six months); other plans do not allow for diversification. </span></span></div></div>","snippet":"The Deferred Compensation—Rabbi Trusts Subsections of this Subtopic address the accounting for deferred compensation arrangements where amounts earned by an employee are invested in the stock of the employer and placed i…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0c915cd13b6784b25036a085df7533981e8adf25f5aad2010c106afd2f2c0bc3","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147482957","source_sha256":"68e734f07de16dd7c82c1d6d8d746b0a9f5beca141b8d72b01e3bff24ef730cb"}},{"citation":"710-10-05-9","para":"05-9","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_B927A471-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The deferred compensation obligation of some plans may be settled in any of the following: </span></span><ol class=\"ol-norm\"><li class=\"li-norm\"><span class=\"linum\">a</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_B927A5CC-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Cash, by having the trust sell the employer stock (or the diversified assets) in the open market </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">b</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_B927A6EB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Shares of the employer's stock </span></span></div></li><li class=\"li-norm\"><span class=\"linum\">c</span><div class=\"p\"><span class=\"sfragment\" id=\"sfr_B927A7DD-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Diversified assets. </span></span></div></li></ol><span class=\"sfragment\" id=\"sfr_B927A8AC-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">In other plans, the deferred compensation obligation may be settled only by delivery of the shares of the employer stock. </span></span></div></div>","snippet":"The deferred compensation obligation of some plans may be settled in any of the following:\n(a) Cash, by having the trust sell the employer stock (or the diversified assets) in the open market\n(b) Shares of the employer's…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:84b96eb8ea4de76c8790435ee79930319c7257016ff6ca57797e790b71d0c109","downloaded_from":"2026-09-10T00:57:14.093Z","last_downloaded_at":"2026-09-10T00:57:14.093Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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