{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/712/10/#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":"712","topic_title":"Compensation—Nonretirement Postemployment Benefits","subtopic":"712-10","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":"712-10-05-1","para":"05-1","html":"
The Compensation—Nonretirement Postemployment Benefits Topic provides guidance on nonretirement postemployment benefits, including termination benefits and other postemployment benefits provided to former and inactive employees. This Topic contains only the Overall Subtopic.
","snippet":"The Compensation—Nonretirement Postemployment Benefits Topic provides guidance on nonretirement postemployment benefits, including termination benefits and other postemployment benefits provided to former and inactive em…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d2f18fffa85dc3e99a4051c1e22025f4bf49036259977c78399b4df1451fd918","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cd06e7eba544c88a8eb0c4d585fdff73aee1ee753aa050ff9dd6149aa89aebdc","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}},{"block":null,"heading":"Termination Benefits","paragraphs":[{"citation":"712-10-05-2","para":"05-2","html":"
An employer may provide benefits to employees in connection with their termination of employment. They may be either special termination benefits offered only for a short period of time or contractual termination benefits required by the terms of a plan only if a specified event, such as a plant closing, causes employees' services to be terminated involuntarily. Termination benefits may take various forms including lump-sum payments, periodic future payments, or both. They may be paid directly from an employer's assets, an existing pension plan, a new employee benefit plan, or a combination of those means.
","snippet":"An employer may provide benefits to employees in connection with their termination of employment. They may be either special termination benefits offered only for a short period of time or contractual termination benefit…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3f0b248d31ca00f7ed2167a3a94b1ac583011c79450266dda2e014cb59096feb","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}},{"citation":"712-10-05-3","para":"05-3","html":"
See Section 712-10-15 for links to other Topics in the Codification that provide guidance on termination benefits, such as the following:
  1. a
    One-time termination benefits resulting from an exit or restructuring activity
  2. b
    Termination benefits (for example, supplemental early retirement benefits, termination indemnities) paid through a pension or other postretirement plan.
","snippet":"See Section 712-10-15 for links to other Topics in the Codification that provide guidance on termination benefits, such as the following:\n(a) One-time termination benefits resulting from an exit or restructuring activity…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:96f441dfb9c6e112da41e3313e95cac9f431f659f5b52493bb574c3274cf390d","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f796ce9695e7710916ba158868c6b77bb4b1e3e96d1c32fb5915b01ef4211331","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}},{"block":null,"heading":"Other Postemployment Benefits","paragraphs":[{"citation":"712-10-05-4","para":"05-4","html":"
Other postemployment benefits include all benefits listed in the following paragraph. These include benefits that are paid before retirement and not payable from a pension or other postretirement plan.
","snippet":"Other postemployment benefits include all benefits listed in the following paragraph. These include benefits that are paid before retirement and not payable from a pension or other postretirement plan.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:67953609ca3e7032edba1f1e702997ae77c43b5cfb2698bc85639cc77978de69","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}},{"citation":"712-10-05-5","para":"05-5","html":"
Other postemployment benefits include, but are not limited to, the following:
  1. a
    Salary continuation
  2. b
    Supplemental unemployment benefits
  3. c
    Severance benefits
  4. d
    Disability-related benefits (including workers' compensation)
  5. e
    Job training and counseling
  6. f
    Continuation of benefits such as health care benefits and life insurance coverage.
","snippet":"Other postemployment benefits include, but are not limited to, the following:\n(a) Salary continuation\n(b) Supplemental unemployment benefits\n(c) Severance benefits\n(d) Disability-related benefits (including workers' comp…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b5edeb55b9cc12e2b11245f012ca73ed7f8f1bf9ee5e8e5c08d9c053637fcfea","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}},{"citation":"712-10-05-6","para":"05-6","html":"
Generally, other postemployment benefits are part of the compensation provided to an employee in exchange for service.
","snippet":"Generally, other postemployment benefits are part of the compensation provided to an employee in exchange for service.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d64868b06a57cf46dd4e3ef4a0b5704c38e41334726989410d218dbabf1878f1","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:923aac3c0dee3e91013bf5bdc2681af8a94ffd0ac0ee567042717628ffcf572f","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1552f1063790a25929d5d1d538099a7182d15e8327f1c7072d065ea7b47adc68","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1552f1063790a25929d5d1d538099a7182d15e8327f1c7072d065ea7b47adc68","downloaded_from":"2026-09-10T00:58:22.739Z","last_downloaded_at":"2026-09-10T00:58:22.739Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481272","source_sha256":"467e08f51bca4ae900006d45bcd9fb1095e6ac444704f8ea0f21cd82e7b8ee75"}}