# ASC 710-10: Compensation—General — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/710/10/) 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): 2026-09-10T00:57:10.881Z to 2026-09-10T00:57:51.911Z Record version: sha256:b5ca8315f1e627f2d6a96b622c496d3b421614061f5283c5693049264e86e286 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10: Compensation—General — Overall ### Machine-generated study aids ```json { "summary": "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).", "key_points": [ "A liability for compensated absences must be accrued if all four conditions in 710-10-25-1 are met: the obligation is attributable to services already rendered, the rights vest or accumulate, payment is probable, and the amount is reasonably estimable; accrual is made in the year earned considering anticipated forfeitures (710-10-25-2).", "Nonvesting rights that expire at year-end are not accrued, but nonvesting rights that accumulate and increase later benefits are accrued if probable and estimable (710-10-25-3); notwithstanding 710-10-25-1, an employer is not required to accrue nonvesting accumulating sick pay benefits (710-10-25-7), though it may (710-10-25-8), and actual practice governs over the form of the policy (710-10-25-6).", "Sabbatical leave is accrued over the requisite service period only if it compensates unrestricted time off for past service; leave granted to perform research or service benefiting the employer is not accrued in advance (710-10-25-4 through 25-5).", "For individual deferred compensation contracts, benefits attributed to a single year are expensed in that year and benefits attributed to a longer period are accrued in a systematic and rational manner over that period, with only the portion applicable to current services accrued (710-10-25-9 through 25-10); the accrued amount at the full eligibility date must equal the then present value of all expected future benefits, based on mortality tables or annuity cost rather than any minimum payable on early death (710-10-30-1 through 30-2).", "Lump-sum payments to union employees in lieu of base wage increases may be deferred and amortized only when it is clear the payment benefits a future period through a lower base wage rate, and amortization may not extend beyond the contract period (710-10-25-13); this guidance applies only to union contracts (710-10-25-14).", "Rabbi trust plans: employer stock held by the trust is classified in equity like treasury stock for Plans A, B, and C, with the obligation classified as equity only for Plan A (fixed shares, no diversification) and as a liability for Plans B and C; for Plan D (diversified) trust assets follow GAAP for the particular asset and the obligation is a liability (710-10-25-16 through 25-18), with the obligation remeasured through compensation cost for Plans B, C, and D (710-10-35-3 through 35-4) but not for Plan A (710-10-35-2).", "The rabbi trust's accounts are consolidated with the employer's (710-10-45-1); trust-held employer shares are treated as treasury stock and excluded from the EPS denominator, with Plan A shares included in basic and diluted EPS and other plans' shares included only in diluted EPS (710-10-45-3 through 45-4); if conditions (a) through (c) of 710-10-25-1 are met but the amount cannot be reasonably estimated, that fact must be disclosed (710-10-50-1)." ], "categories": [ "Recognition", "Compensation and benefits", "Subsequent measurement", "Earnings per share" ], "audience_level": "intermediate", "student_note": "Exam favorite: the four-part accrual test for vacation pay and the sick-pay exception — nonvesting accumulating sick pay need not be accrued, but vacation that vests or accumulates must be, and the employer's actual practice trumps the written policy. On rabbi trusts, classification hinges on whether settlement is fixed in employer shares (equity, no remeasurement) or can be cash/diversified assets (liability, remeasured through compensation cost).", "related_topics": [ "712-10", "715-30", "715-60", "718", "450", "260-10" ], "key_concepts": [ "compensated absences", "vested and accumulating rights", "sick pay benefits", "sabbatical leave", "deferred compensation contracts", "full eligibility date", "rabbi trust", "union contract lump-sum payments" ] } ``` Source downloaded (UTC): 2026-09-10T00:57:10.881Z to 2026-09-10T00:57:10.881Z Record version: sha256:a0069a12ffcb04ea0874a00563e779659d00652aa8dba0d25273c217207e713f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/710/10/#00-status) SEC content: no ##### [710-10-00-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:10.881Z to 2026-09-10T00:57:10.881Z Record version: sha256:0ba9559b8ec8f8a25ffc18924ea18ab17a5543e833da7e840608c51bc156d529 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
710-10-25-18AmendedAccounting Standards Update No. 2016-0101/05/2016
Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:9ec6323649226513aedd0af7f292460ed812666a3105cd8c68bfe11e49ab3100 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/710/10/#05-overview-and-background) SEC content: no ##### [710-10-05-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:36c5f4ffcd522d1992ef53ea602f50a6d5b7539bffee2814cbb26bf77128559d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for compensation-related costs. The Topics include: 1. a Compensation—General 2. b Compensation—Nonretirement Postemployment Benefits 3. c Compensation—Retirement Benefits 4. d Compensation—Stock Compensation. ##### [710-10-05-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:4091eed37555a7d6e81cda2ce6f5b369f4fe70298522160b521278418262eebc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [710-10-05-3](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:19bc6c936abd20a927c63c14fb263a5a6200bd4880f3754475c50fb14164a0ee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic contains the following two Subsections to segregate the guidance: 1. a General 2. b Deferred Compensation—Rabbi Trusts. ##### [710-10-05-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:0e9fccf587c2c18a52bfd7ca89324cc947151651683410547d9743c977aafda2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections provide guidance on the following: 1. a Compensated absences 2. b Deferred compensation arrangements 3. c Lump-sum payments under union contracts. #### Compensated Absences ##### [710-10-05-5](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:c93905dca51a7fceff1e3877b800fbe98f90ccb162b070575da17cce902c8099 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 sick pay benefits, holidays, certain sabbatical leaves and similar compensated absences. #### Deferred Compensation Arrangements ##### [710-10-05-6](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:f3b00367d9b60a8edb2d10504df0d51f48974c46a802f597f75d521631446e93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [715-10-15-3](https://asc.understandingaccounting.org/asc/715/10/#715-10-15-3). #### Lump-Sum Payments Under Union Contracts ##### [710-10-05-7](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:d1379620ad358733213a647d8b1da99bb0f3bc0a83b881cfce30a7772860925a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsections of this Subtopic provide recognition guidance for lump-sum payments received by union employees upon signing new union contracts. ### Deferred Compensation—Rabbi Trusts ##### [710-10-05-8](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:0c915cd13b6784b25036a085df7533981e8adf25f5aad2010c106afd2f2c0bc3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 [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."). 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. ##### [710-10-05-9](https://asc.understandingaccounting.org/asc/710/10/#710-10-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:14.093Z to 2026-09-10T00:57:14.093Z Record version: sha256:84b96eb8ea4de76c8790435ee79930319c7257016ff6ca57797e790b71d0c109 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The deferred compensation obligation of some plans may be settled in any of the following: 1. a Cash, by having the trust sell the employer stock (or the diversified assets) in the open market 2. b Shares of the employer's stock 3. c Diversified assets. In other plans, the deferred compensation obligation may be settled only by delivery of the shares of the employer stock. 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. Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:326ad34153f76e0f201bafef89b020c36e6f53580f98fa9f1132126f9e775d32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/710/10/#25-recognition) SEC content: no #### Compensated Absences ##### [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:23a2a76993a67b242251ca3f5cccedeb66f421eb3f82456c4ae3b9b09b29659c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer shall accrue a liability for employees' compensation for future absences if all of the following conditions are met: 1. a The employer's obligation relating to employees' rights to receive compensation for future absences is attributable to employees' services already rendered. 2. b The obligation relates to rights that vest or accumulate. Vested rights are those for which the employer has an obligation to make payment even if an employee terminates; thus, they are not contingent on an employee's future service. Accumulate means that earned but unused rights to [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.") may be carried forward to one or more periods subsequent to that in which they are earned, even though there may be a limit to the amount that can be carried forward. 3. c Payment of the compensation is probable. 4. d The amount can be reasonably estimated. ##### [710-10-25-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:e82bd0d88fd6d1dd7341ba6f51fd7c23fa92ae72f5d022666b2cfd2bc9ad9607 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A liability for amounts to be paid as a result of employees' rights to compensated absences shall be accrued, considering anticipated forfeitures, in the year in which earned. For example, if new employees receive vested rights to two-weeks' paid vacation at the beginning of their second year of employment with no pro rata payment in the event of termination during the first year, the two-weeks' vacation shall be considered to be earned by work performed in the first year and an accrual for vacation pay shall be required for new employees during their first year of service, allowing for estimated forfeitures due to turnover. Furthermore, the definition of a liability does not limit an employer's liability for compensated absences solely to rights to compensation for those absences that eventually vest. The definition also encompasses a constructive obligation for reasonably estimable compensation for past services that, based on the employer's past practices, probably shall be paid and can be reasonably estimated. ##### [710-10-25-3](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:03dd06ed2d1869f141ac2c284fc07b2a4fd736829b544c159cae665969d2bebd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Individual facts and circumstances must be considered in determining when nonvesting rights to compensated absences are earned by services rendered. The requirement to accrue a liability for nonvesting rights to compensated absences depends on whether the unused rights expire at the end of the year in which earned or accumulate and are carried forward to succeeding years, thereby increasing the benefits that would otherwise be available in those later years. If the rights expire, a liability for future absences shall not be accrued at year-end because the benefits to be paid in subsequent years would not be attributable to employee services rendered in prior years. (Jury duty and military leave benefits generally do not accumulate if unused and, unless they accumulate, a liability for those benefits shall not be accrued at year-end.) On the other hand, if unused rights do accumulate and increase the benefits otherwise available in subsequent years, a liability shall be accrued at year-end to the extent that it is probable that employees will be paid in subsequent years for the increased benefits attributable to the accumulated rights and the amount can be reasonably estimated. ##### [710-10-25-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:4d4673d60276c036a8e18c5390357844a3caa8ffb43cff9b4f76f4d5b53c98b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The appropriate accounting for a [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.") depends on the purpose of the leave. If a sabbatical leave is granted only to perform research or public service to enhance the reputation of or otherwise benefit the employer, the compensation is not attributable to services already rendered (see paragraph [710-10-25-1(a)](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1)); a liability shall not be accrued in advance of the employee's services during such leave. If the leave is granted to provide compensated unrestricted time off for past service and the other conditions for accrual are met, a liability for sabbatical leave shall be accrued. ##### [710-10-25-5](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:e7ad3aebf1813a128cd8cff2ffc939fbb2be43665971b83b901b377b07de765e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employee's right to a compensated absence under a sabbatical or other similar benefit arrangement that requires the completion of a minimum service period and in which the benefit does not increase with additional years of service accumulates pursuant to paragraph [710-10-25-1(b)](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) for arrangements in which the individual continues to be a compensated employee and is not required to perform any direct or indirect services for or on behalf of the entity during the absence. Therefore, assuming all of the other conditions of paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) are met, the compensation cost associated with a sabbatical or other similar benefit arrangement shall be accrued over the requisite service period. ##### [710-10-25-6](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:c28b12c6b6419b13655d2ecc24bc0c0d720a392da1dddc00adfccae83cae97d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The employer's actual administration of sick pay benefits shall determine the appropriate accounting. In accounting for compensated absences, the form of an employer's policy for compensated absences shall not prevail over actual practices. For example, if employees are customarily paid sick pay benefits even though their absences from work are not actually the result of illness or if employees are routinely allowed to take compensated terminal leave for accumulated unused sick pay benefits prior to retirement, such benefits shall not be considered sick pay benefits for purposes of applying the provisions of the following paragraph but rather shall be accounted for in accordance with paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1). ##### [710-10-25-7](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:e21dae702ced5a41de2abd4dfbbc733c33fe2f85688494e2fa7532453613b81a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Notwithstanding the conditions specified in paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1), an employer is not required to accrue a liability for nonvesting accumulating rights to receive sick pay benefits (that is, compensation for an employee's absence due to illness). ##### [710-10-25-8](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:64a0f4cfc2ee43cb3422483de3d4a956e6737c26deadefb1327c2386638e3605 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic does not prohibit an employer from accruing a liability for such nonvesting accumulating sick pay benefits, providing the criteria of paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) are met. #### Deferred Compensation Arrangements ##### [710-10-25-9](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:461e90490b16ff8951ed2ad6c176f12bf3db9d7f3ff56e0fd1479dec936e09b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent the terms of a contract attribute all or a portion of the expected future benefits to an individual year of the employee's service, the cost of those benefits shall be recognized in that year. To the extent the terms of the contract attribute all or a portion of the expected future benefits to a period of service greater than one year, the cost of those benefits shall be accrued over that period of the employee's service in a systematic and rational manner. ##### [710-10-25-10](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:2646384fcbc13776e0434ea0ebae0ce2008e30c21bcddb773cb128db04de094b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If elements of both current and future services are present, only the portion applicable to the current services shall be accrued. Example 1 (see paragraph [710-10-55-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-1)) illustrates this guidance. ##### [710-10-25-11](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-11) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:fd27eb271de031e42c440e5ce687de13ad877fc6474bfe6024e4fb03fd1d952c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Some deferred compensation contracts provide for periodic payments to employees or their surviving spouses for life with provisions for a minimum lump-sum settlement in the event of the early death of one or all of the beneficiaries. The estimated amount (see paragraph [710-10-30-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-30-1)) of future payments to be made under such contracts shall be accrued over the period of active employment from the time the contract is entered into. Example 2 (see paragraph [710-10-55-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-4)) illustrates this guidance. #### Lump-Sum Payments Under Union Contracts ##### [710-10-25-12](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-12) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:9ae0de6a36927d76e603f79997df9b8796dfe09997b2ea7f7b18ac88bb2fb4f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In connection with the signing of new union contracts, union employees may agree to accept a lump-sum cash payment or payments in lieu of all or a portion of an increase in their base wage rate. Entities believe that in certain circumstances those lump-sum payments reduce or eliminate increases in base wage rates during the contract period that would otherwise be required. The specific terms of lump-sum payments vary, but ordinarily there is no requirement that the employee refund to the entity any portion of the payment if the employee terminates employment prior to the end of the contract period. Unlike an employment contract with an individual, the union contract applies to the work force, and there is a presumption that an employee who terminates generally will be replaced by another union member at the same base wage rate without an additional lump-sum payment. ##### [710-10-25-13](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-13) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:0c0d5468282e6b4a75aaa9ff3bf211ca01401bfba3d33ef37a8c9e99b006bb31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All or a portion of a lump-sum payment may be deferred and appropriately amortized only when it is clear that the payment will benefit a future period in the form of a lower base wage rate than otherwise would have existed. The period of amortization shall not extend beyond the contract period. The terms and conditions of those payments may vary and the facts and circumstances surrounding the contract and the negotiations must be reviewed to determine how to account for the payment. ##### [710-10-25-14](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-14) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:8ec1b4d2dd07587039f5e7e4dfe9a46ce6001efaea7522229bcf9c7df95a254f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This guidance relates solely to union contracts and not to individual employment contracts or any other situation involving compensation payments to individual employees. ### Deferred Compensation—Rabbi Trusts ##### [710-10-25-15](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-15) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:8ad8ef7058fbed327286704be4b94bae8ca86318ad2b3fde8af97d128d057a83 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following are the four types of deferred compensation arrangements involving [rabbi trusts](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.") covered by this Subsection: 1. a Plan A—The plan does not permit diversification and must be settled by the delivery of a fixed number of shares of employer stock. 2. b Plan B—The plan does not permit diversification and may be settled by the delivery of cash or shares of employer stock. 3. c Plan C—The plan permits diversification; however, the employee has not diversified (the plan may be settled in cash, shares of employer stock, or diversified assets). 4. d Plan D—The plan permits diversification and the employee has diversified (the plan may be settled in cash, shares of employer stock, or diversified assets). #### Plan A ##### [710-10-25-16](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-16) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:18b87a5b85e3dbc713f7343d544c18b5540295b7369b7a71e279ca3dcb3d46af Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For Plan A, employer stock held by the rabbi trust shall be classified in equity in a manner similar to the manner in which treasury stock (see Subtopic 505-30) is accounted for. The deferred compensation obligation shall be classified as an equity instrument. #### Plans B and C ##### [710-10-25-17](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-17) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:f6db4c37963a3a345dc2d6537555e55a6ff1743f301794e89ceb212be63128b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For Plans B and C, employer stock held by the rabbi trust shall be classified in equity in a manner similar to the manner in which treasury stock (see Subtopic 505-30) is accounted for. The deferred compensation obligation shall be classified as a liability. #### Plan D ##### [710-10-25-18](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-18) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:22.456Z to 2026-09-10T00:57:22.456Z Record version: sha256:2155a4b1e189402f90ba1bb717a2be54964a7786c153bac9e1e0e2ca5c6f7f54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For Plan D, assets held by the rabbi trust shall be accounted for in accordance with generally accepted accounting principles (GAAP) for the particular asset (for example, if the diversified asset is an equity security, that security would be accounted for in accordance with Subtopic 321-10). The deferred compensation obligation shall be classified as a liability. At acquisition, debt securities held by the rabbi trust may be classified as trading. Source downloaded (UTC): 2026-09-10T00:57:26.577Z to 2026-09-10T00:57:26.577Z Record version: sha256:3b3a6d6a8d31c69623e07674e0f2d14b6374d2115d4b06d082e74aeada94dfb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/710/10/#30-initial-measurement) SEC content: no #### Deferred Compensation Arrangements ##### [710-10-30-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:26.577Z to 2026-09-10T00:57:26.577Z Record version: sha256:8ec555d2cac711bf5b5811aee84f53cfc6d7ab4217d7e987d971055d8264fb7a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The amounts to be accrued periodically under paragraph [710-10-25-9](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-9) shall result in an accrued amount at the [full eligibility date](https://asc.understandingaccounting.org/glossary/f/#full-eligibility-date "The date at which an employee has rendered all of the service necessary to have earned the right to receive all of the benefits expected to be received by that employee (including any beneficiaries and dependents expected to receive benefits). Determination of the full eligibility date is affected by plan terms that provide incremental benefits expected to be received by or on behalf of an employee for additional years of service, unless those incremental benefits are trivial. Determination of the full eligibility date is not affected by plan terms that define when benefit payments commence or by an employee's current marital or dependency status.") equal to the then present value of all of the future benefits expected to be paid. Such estimates shall be based on the life expectancy of each individual concerned (based on the most recent mortality tables available) or on the estimated cost of an annuity contract rather than on the minimum payable in the event of early death. ##### [710-10-30-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-30-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:26.577Z to 2026-09-10T00:57:26.577Z Record version: sha256:911b0870638edc270a8925a6d53273a5ce267c96f06a0f421c198e98ebc6ca49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. At the end of that period the aggregate amount accrued shall equal the then present value of the benefits expected to be provided to the employee, any beneficiaries, and covered dependents in exchange for the employee's service to that date. Example 1 (see paragraph [710-10-55-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-1)) and Example 3 (see paragraph [710-10-55-7](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-7)) illustrate this guidance. Source downloaded (UTC): 2026-09-10T00:57:29.759Z to 2026-09-10T00:57:29.759Z Record version: sha256:31da07ec49d246af6bcfb14b65867125a3024e740bac0f2ccd871cb06956eac4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/710/10/#35-subsequent-measurement) SEC content: no ### Deferred Compensation—Rabbi Trusts ##### [710-10-35-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:29.759Z to 2026-09-10T00:57:29.759Z Record version: sha256:3fd74c4ddf246493633883f92e41722a8843eaf6ee4bc32dcaf9814814a27557 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Subsequent Measurement Section addresses the four plans (A to D) as outlined in paragraph [710-10-25-15](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-15). #### Plan A ##### [710-10-35-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:29.759Z to 2026-09-10T00:57:29.759Z Record version: sha256:78f6c23a5f18894a23a1cd34257ad51b3e17f8ec66ea07daa737c42cf532b79c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent changes in the fair value of the employer's stock shall not be recognized. With respect to the deferred compensation obligation recognized under paragraph [710-10-25-16](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-16), changes in the fair value of the amount owed to the employee shall not be recognized. #### Plans B and C ##### [710-10-35-3](https://asc.understandingaccounting.org/asc/710/10/#710-10-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:29.759Z to 2026-09-10T00:57:29.759Z Record version: sha256:9761ad1c71a595c65a47264e90323e41637bf43781605394c93d6cd42a2187e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Subsequent changes in the fair value of the employer's stock, recorded in a manner similar to treasury stock, shall not be recognized. The deferred compensation obligation shall be adjusted with a corresponding charge (or credit) to compensation cost, to reflect the changes in the fair value of the amount owed to the employee. #### Plan D ##### [710-10-35-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:29.759Z to 2026-09-10T00:57:29.759Z Record version: sha256:9bbb538b65935dc1e40ce5cae5d58a713e652d557d40d777f2f68c31d956fb0a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The deferred compensation obligation shall be adjusted, with a corresponding charge (or credit) to compensation cost, to reflect changes in the fair value of the amount owed to the employee. Source downloaded (UTC): 2026-09-10T00:57:31.888Z to 2026-09-10T00:57:31.888Z Record version: sha256:2c09009ebdaecbd142b7365d53bc1eeb53fec82434473a23993002328c1da993 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/710/10/#45-other-presentation-matters) SEC content: no ### Deferred Compensation—Rabbi Trusts ##### [710-10-45-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:31.888Z to 2026-09-10T00:57:31.888Z Record version: sha256:40d92d0a3cd4267ef5cab46670b6b6d39be71bfcd2e52a93b3fe9a9f0f9bbf75 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For all of the types of plans (A to D) discussed in paragraph [710-10-25-15](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-15), the accounts of the rabbi trust shall be consolidated with the accounts of the employer in the financial statements of the employer. ##### [710-10-45-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:31.888Z to 2026-09-10T00:57:31.888Z Record version: sha256:5f73c7d4d22185ae05da6af2865aac020b7ac5a61317c646f2171fdf52ed2f35 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For Plan D only, changes in the fair value of the deferred compensation obligation shall not be recorded in other comprehensive income, even if changes in the fair value of the assets held by the rabbi trust are recorded, pursuant to Subtopic 320-10, in other comprehensive income. ##### [710-10-45-3](https://asc.understandingaccounting.org/asc/710/10/#710-10-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:31.888Z to 2026-09-10T00:57:31.888Z Record version: sha256:777faaefbfd414a81453735f8ceb65e6680294d32f46c91accd8ae0de08dff8f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For all of these types of plans, employer shares held by the rabbi trust shall be treated as treasury stock for earnings per share (EPS) purposes and excluded from the denominator in the basic and diluted EPS calculations. However, the obligation under the deferred compensation arrangement shall be reflected in the denominator of the EPS computation in accordance with the provisions of Section 260-10-45. ##### [710-10-45-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:31.888Z to 2026-09-10T00:57:31.888Z Record version: sha256:d28b395e03943bd203442a2d38d2574008584b5577595fc33e8d7445a1e46d51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In accordance with paragraph [260-10-45-13](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-13), if an obligation is required to be settled by delivery of shares of employer stock (Plan A), those shares shall be included in the calculation of basic and diluted EPS. If the obligation may be settled by delivery of cash, shares of employer stock, or diversified assets (other than Plan A), those shares shall not be reflected in basic EPS but shall be included in the calculation of diluted EPS in accordance with paragraph [260-10-45-30](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-30) and paragraphs [260-10-45-45 through 45-46](https://asc.understandingaccounting.org/asc/260/10/#260-10-45-45) . Source downloaded (UTC): 2026-09-10T00:57:35.402Z to 2026-09-10T00:57:35.402Z Record version: sha256:077755d4ec07e9e2f2e346651883c1070b299b8706ce4fdf9989962603814c46 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/710/10/#50-disclosure) SEC content: no #### Compensated Absences ##### [710-10-50-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:35.402Z to 2026-09-10T00:57:35.402Z Record version: sha256:be2d3ba083eabc327fda4f9e988c2e5de24da2b43fbc38bf73ffc4c92ae1cda2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an employer meets the conditions in paragraph [710-10-25-1(a) through (c)](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) and does not accrue a liability because the condition in paragraph [710-10-25-1(d)](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) is not met, that fact shall be disclosed. Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:93951b473e91bed2edc43d4e2f25273ba9086549ac18b30c7acfd7c866e8d394 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/710/10/#55-implementation-guidance-and-illustrations) SEC content: no #### Illustrations ##### [710-10-55-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:d2b5160c84b322875cbfc967b1e6e9273ae0bd4b45304475ddb6f711c520fc0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraphs [710-10-25-9](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-9) and [710-10-30-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-30-1). ##### [710-10-55-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:d532b603d99fe33df90d8effde9a27341b3e762f0c2819d9b1d89b628cb16771 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer's deferred compensation contract does not provide a vested benefit for employees' prior service at the date the contract is entered into. Employees must render 30 years of service to receive benefits under a deferred compensation contract. An employee has rendered 16 years of service at the date of entering into the contract. Credit is granted for that prior service in determining eligibility for the benefit to be provided. ##### [710-10-55-3](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:daa98e782902acd13c2f224f9388e15a054b6b93f02c459043d1328ff578f1f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Example, the employer should accrue the total obligation under the deferred compensation contract in a systematic and rational manner over the employee's future service period to the date full eligibility for the benefits is attained, that is, over the next 14 years. If the employee is eligible to receive a portion of the benefits without regard to future service, that is, the credit for prior service results in a vested benefit, the obligation for that benefit should be fully accrued at the time the contract is entered into. ##### [710-10-55-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:6144c22c45fdfd9f7a778b4e7eade11d9d03a7cfd18d5d1c74b066775408a49d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [710-10-25-11](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-11). ##### [710-10-55-5](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:c5d12fac79a20c13a4bb8c484f517b93ff52b782d575f55ca008a2b839d112fa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employee becomes fully eligible for benefits under a deferred compensation contract five years after entering into the contract. The contract states, however, that if the employee dies or becomes disabled, benefits will be payable immediately. The contract is not one of a group of contracts that possess the characteristics of a pension plan. ##### [710-10-55-6](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:02d049a318e88faaceaf0643c9f08f76c8f17fb29e419f9a1af193a069e3c58d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this Example, if the employee is expected to render service over the next five years, benefits should be attributed over that service period. If death or disability unexpectedly occurs during the five-year period, the benefit obligation should be remeasured and any previously unrecognized amount should be immediately recognized at the date of the event. If the employee is expected to terminate service within the next five years, an accrual is normally not required because the employee is not expected to receive benefits under the plan. However, in the rare situation that it is probable that death or disability will occur during the five-year period, the benefit should be accrued over the relevant service period. ##### [710-10-55-7](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:1c6f3db84ebd0fc4db52d81559656f79d2f9e715ae3fb40395b949ae31e49768 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [710-10-30-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-30-1). An employer may provide postretirement benefits to selected employees under individual contracts with specific terms determined on an individual-by-individual basis. That paragraph attributes those benefits to the individual employee's years of service following the terms of the contract. The following Cases illustrate the application of that paragraph for individual deferred compensation contracts: 1. a Contract provides only prospective benefits (Case A). 2. b Contract provides retroactive benefits (Case B). ##### [710-10-55-8](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:7fbbb0341c3d86640c9110ed9a01b326d10cd4e67fd51bc807298beea6d28989 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity enters into a deferred compensation contract with an employee at the date of hire. The contract provides for a payment of $150,000 upon termination of employment following a minimum 3-year service period. The contract provides for a compensation adjustment for each year of service after the third year determined by multiplying $150,000 by the entity's return on equity for the year. Also, each year after the third year of service, interest at 10 percent per year is credited on the amount due under the contract at the beginning of that year. Accordingly, a liability of $150,000 is accrued in a systematic and rational manner over the employee's first 3 years of service. Following the third year of service, the accrued liability is adjusted annually for accrued interest and the increased or decreased compensation based on the entity's return on equity for that year. At the end of the third year and each subsequent year of the employee's service, the amount accrued equals the then present value of the benefit expected to be paid in exchange for the employee's service rendered to that date. ##### [710-10-55-9](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:7c1b067d946ce8bd54fe811797cb6357cda70b73fe60b3448c67dcebcdc890b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An entity enters into a contract with a 55-year-old employee who has worked 5 years for the entity. The contract states that in exchange for past and future services and for serving as a consultant for 2 years after the employee retires, the entity will pay an annual pension of $20,000 to the employee, commencing immediately upon the employee's retirement. It is expected that the future benefits to the employer from the consulting services will be minimal. Consequently, the actuarial present value of a lifetime annuity of $20,000 that begins at the employee's expected retirement date is accrued at the date the contract is entered into because the employee is fully eligible for the pension benefit at that date. ##### [710-10-55-10](https://asc.understandingaccounting.org/asc/710/10/#710-10-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:39.474Z to 2026-09-10T00:57:39.474Z Record version: sha256:a6bf902ee64318695a182c9d3dedcb46c2cdd378977674cdb87cf9c3e38fa21f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the terms of the contract described in the preceding paragraph had stated that the employee is entitled to the pension benefit only if the sum of the employee's age and years of service equal 70 or more at the date of retirement, the employee would be fully eligible for the pension benefit at age 60, after rendering 5 more years of service. The actuarial present value of a lifetime annuity of $20,000 that begins at the expected retirement date would be accrued in a systematic and rational manner over the 5-year period from the date the contract is entered into to the date the employee is fully eligible for the pension benefit. Source downloaded (UTC): 2026-09-10T00:57:41.539Z to 2026-09-10T00:57:41.539Z Record version: sha256:af23ba25ee44f7401e774f228aeb6cc242b7bfd0fed421d93e702dece142dc37 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-60: 60 Relationships [Read section](https://asc.understandingaccounting.org/asc/710/10/#60-relationships) SEC content: no #### Compensation—Nonretirement Postemployment Benefits ##### [710-10-60-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-60-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:41.539Z to 2026-09-10T00:57:41.539Z Record version: sha256:57a1d3fe5fb6593f10b7ffc70d67d7d8252e994b93c238462e666539f45554a2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on special termination benefits or contractual termination benefits, see Topic 712. ##### [710-10-60-2](https://asc.understandingaccounting.org/asc/710/10/#710-10-60-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:41.539Z to 2026-09-10T00:57:41.539Z Record version: sha256:4cce2acd4156cac6a09bf6b7647b097a38832df0e8c92d9765ab77665453e0b9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the determination of whether assets of a trust qualify as plan assets in the event of the employer's bankruptcy, see paragraph [715-60-55-26](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-26). ##### [710-10-60-3](https://asc.understandingaccounting.org/asc/710/10/#710-10-60-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:41.539Z to 2026-09-10T00:57:41.539Z Record version: sha256:dfd0c025ac8e14d203631a807e133137d9a564d730eafb8be83315804673ee7f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on whether plan assets include the assets of a rabbi trust, see paragraph [715-60-55-27](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-27). #### Business Combinations and Reorganizations ##### [710-10-60-4](https://asc.understandingaccounting.org/asc/710/10/#710-10-60-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:41.539Z to 2026-09-10T00:57:41.539Z Record version: sha256:c708f0b71efa3d685f4e80b6a064e829a9fc7895c22013550a93e91ec49d9948 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For guidance on the accounting for the liability for contractual termination benefits and curtailment losses under employee benefit plans that will be triggered by the consummation of a business combination, see paragraphs [805-20-55-50 through 55-51](https://asc.understandingaccounting.org/asc/805/20/#805-20-55-50) . Source downloaded (UTC): 2026-09-10T00:57:48.191Z to 2026-09-10T00:57:48.191Z Record version: sha256:7db71b90d2200ebbd949f73a63327f1ca6796b91c95904cd81552c7b1e9541db Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-S15: SEC 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/710/10/#sec-15-scope-and-scope-exceptions) SEC content: yes #### Lump-Sum Payment Under Union Contracts ##### [710-10-S15-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-S15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:48.191Z to 2026-09-10T00:57:48.191Z Record version: sha256:69a252775b9d85dbf47bd9112732106f836029936a13b75604db293c753fe6a5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [710-10-S99-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-S99-1), SEC Observer Comment: Lump-Sum Payments Under Union Contracts, for SEC Staff views on the scope to which paragraph [710-10-25-13](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-13) applies. Source downloaded (UTC): 2026-09-10T00:57:50.290Z to 2026-09-10T00:57:50.290Z Record version: sha256:4c44481e9034e559dacea0cd28e013de3e4db5ba2fca6e955ec75631497520a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-S25: SEC 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/710/10/#sec-25-recognition) SEC content: yes #### Lump-Sum Payment Under Union Contracts ##### [710-10-S25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-S25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:50.290Z to 2026-09-10T00:57:50.290Z Record version: sha256:d611ba698a1ed9c3374bf6759b430496cecff6e5afacea2cdf4b51fecbdd749a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [710-10-S99-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-S99-1), SEC Observer Comment: Lump-Sum Payments Under Union Contracts, for SEC Staff views on deferral of lump-sum payments made under union contracts. Source downloaded (UTC): 2026-09-10T00:57:51.911Z to 2026-09-10T00:57:51.911Z Record version: sha256:773bbcf50ad2e926bf6310e2662e885da5d2e89293cebf1a911a9f4175901689 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 710-10-S99: SEC 99 SEC Materials [Read section](https://asc.understandingaccounting.org/asc/710/10/#sec-99-sec-materials) SEC content: yes #### SEC Staff Guidance ##### [710-10-S99-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-S99-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:57:51.911Z to 2026-09-10T00:57:51.911Z Record version: sha256:ea1ba7200a5f1e60458ab244df28fbfa77aaf57248e5990199473316fbb2a2ae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following is the text of SEC Observer Comment: Lump-Sum Payments Under Union Contracts. - Deferral of a lump-sum payment under a union contract in accordance with paragraph [710-10-25-13](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-13) is appropriate only when there is no evidence whatsoever that the payment might be related to past services.