# ASC 710-10-15: Compensation—General — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/710/10/#15-scope-and-scope-exceptions) 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): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:a3a2a7507ae9ff4af02530a3a59dea43aa60dda6a48a992d24431d36660381e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/710/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [710-10-15-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:092348c4ab373d1b8a05d2c1ec0ff1dcaff7963e29a0b6505bc060d48a450ce9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of the Scope Section of the Overall Subtopic establishes the pervasive scope for the Compensation—General Topic, with specific exceptions noted in the other Subsections of this Section. #### Entities ##### [710-10-15-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:6467138cdcde5307b163dca9676955273ee98b5f14b1f98afa52de7cf7b986f0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Compensation—General Topic applies to all entities. #### Transactions ##### [710-10-15-3](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:5c07f4bab5890d55569af198623118fb0588fd693d7cdf427ca9cd0ed6fc136b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Compensation—General Topic applies to the following compensation or employee benefit arrangements: 1. a Compensation for future absences where employees have rights to receive compensation for future absences (referred to as [compensated absences](https://asc.understandingaccounting.org/glossary/c/#compensated-absences "Employee absences, such as vacation, illness, and holidays, for which it is expected that employees will be paid.")) 2. b [Sabbatical leave](https://asc.understandingaccounting.org/glossary/s/#sabbatical-leave "A benefit in the form of a compensated absence whereby the employee is entitled to paid time off after working for an entity for a specified period of time. During the sabbatical, the individual continues to be a compensated employee and is not required to perform any duties for the entity.") or other similar benefit arrangement that is unrestricted (that is, the employee is not required to perform any direct or indirect services for or on behalf of the entity during the absence) 3. c Lump-sum payments under union contracts (that is, not to individual employment contracts or any other situation involving compensation payments to individual employees). ##### [710-10-15-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:6d99fa38dedf446b65542c78c616942c0bfaa65621e42152455fa3c03f8763f8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to the following deferred compensation or employee benefit arrangements: 1. a All forms of postemployment benefits, as defined in Subtopic 712-10, that meet the conditions in paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) 2. b Split-dollar life insurance arrangements if the arrangement is, in substance, an individual deferred compensation contract (see paragraphs [715-60-35-177 through 35-185](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-177) . 3. c Other deferred compensation contracts accounted for individually. ##### [710-10-15-5](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:4e03b1e11750cf09a335b084f0fa86fd328354feace1c2016e5082ea825a5b8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following deferred compensation or employee benefit arrangements: 1. a Benefits paid to active employees other than compensated absences 2. b Benefits paid at retirement or provided through a pension or postretirement benefit plan including special or contractual termination benefits payable upon termination from a pension or other postretirement plan are covered by Subtopics 715-30 and 715-60. 3. c Individual deferred compensation contracts that are addressed by Subtopics 715-30 and 715-60, if those contracts, taken together, are equivalent to a defined benefit pension plan or a defined benefit other postretirement benefit plan, respectively. 4. d Special or contractual termination benefits that are not payable from a pension or other postretirement plan are covered by Topic 712 5. e Stock compensation plans that are addressed by Topic 718 6. f Other postemployment benefits (see Topic 712) that do not meet the conditions in paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) and are accounted for in accordance with Topic 450. #### Other Considerations ##### [710-10-15-6](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:f0cfbd0a76fcd57a0c5e2f21a359eaa8e5fd64764aee4f32bbb6f488d18690fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Compensation—General Topic does not address the allocation of costs of compensated absences to interim periods. ### Deferred Compensation—Rabbi Trusts #### Overall Guidance ##### [710-10-15-7](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:97f29e7c2cfa29015d874a732825feb6b547d5efb1949a9e781aa2fe513b7130 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Deferred Compensation—Rabbi Trusts Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, with specific transaction qualifications noted below. #### Transactions ##### [710-10-15-8](https://asc.understandingaccounting.org/asc/710/10/#710-10-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:17.808Z to 2026-09-10T00:57:17.808Z Record version: sha256:e18b76eac9e5907a9b9d585268324ba4c416665c2197464140d8f2b303545235 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Deferred Compensation—Rabbi Trusts Subsections addresses the accounting for deferred compensation arrangements that have the following characteristics: 1. a If amounts earned by an employee are invested in the stock of the employer and placed in a [rabbi trust](https://asc.understandingaccounting.org/glossary/r/#rabbi-trusts "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.") 2. b Where the employee elects to diversify the assets held by the rabbi trust into nonemployer securities. The guidance in the Deferred Compensation—Rabbi Trusts Subsections does not address the accounting for stock appreciation rights even if they are funded through a rabbi trust.