# ASC 712-10-05: Compensation—Nonretirement Postemployment Benefits — Overall — 05 Overview and Background Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/712/10/#05-overview-and-background) 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): 2026-09-10T00:58:22.739Z to 2026-09-10T00:58:22.739Z Record version: sha256:1552f1063790a25929d5d1d538099a7182d15e8327f1c7072d065ea7b47adc68 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 712-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/712/10/#05-overview-and-background) SEC content: no ##### [712-10-05-1](https://asc.understandingaccounting.org/asc/712/10/#712-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:22.739Z to 2026-09-10T00:58:22.739Z Record version: sha256:d2f18fffa85dc3e99a4051c1e22025f4bf49036259977c78399b4df1451fd918 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Compensation—Nonretirement Postemployment Benefits Topic provides guidance on [nonretirement postemployment benefits](https://asc.understandingaccounting.org/glossary/n/#nonretirement-postemployment-benefits "All types of benefits, other than those provided through a pension or other postretirement plan (see Subtopics 715-30 and 715-60), provided to former or inactive employees, their beneficiaries, and covered dependents."), including [termination benefits](https://asc.understandingaccounting.org/glossary/t/#termination-benefits "Benefits provided by an employer 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 benefits required by the terms of a plan only if a specified event, such as a plant closing, occurs.") and [other postemployment benefits](https://asc.understandingaccounting.org/glossary/o/#other-postemployment-benefits "Benefits, other than special or contractual termination benefits, that are provided by an employer to former or inactive employees after employment but before retirement including benefits provided to beneficiaries and covered dependents.") provided to former and [inactive employees](https://asc.understandingaccounting.org/glossary/i/#inactive-employees "Employees who are not currently rendering service to the employer and who have not been terminated. They include those who have been laid off and those on disability leave, regardless of whether they are expected to return to active status."). This Topic contains only the Overall Subtopic. #### Termination Benefits ##### [712-10-05-2](https://asc.understandingaccounting.org/asc/712/10/#712-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:22.739Z to 2026-09-10T00:58:22.739Z Record version: sha256:3f0b248d31ca00f7ed2167a3a94b1ac583011c79450266dda2e014cb59096feb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer may provide benefits to employees in connection with their termination of employment. They may be either [special termination benefits](https://asc.understandingaccounting.org/glossary/s/#special-termination-benefits "Benefits that are offered for a short period of time in exchange for employees' voluntary termination of service.") 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. ##### [712-10-05-3](https://asc.understandingaccounting.org/asc/712/10/#712-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:22.739Z to 2026-09-10T00:58:22.739Z Record version: sha256:96f441dfb9c6e112da41e3313e95cac9f431f659f5b52493bb574c3274cf390d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Other Postemployment Benefits ##### [712-10-05-4](https://asc.understandingaccounting.org/asc/712/10/#712-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:22.739Z to 2026-09-10T00:58:22.739Z Record version: sha256:67953609ca3e7032edba1f1e702997ae77c43b5cfb2698bc85639cc77978de69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [712-10-05-5](https://asc.understandingaccounting.org/asc/712/10/#712-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:22.739Z to 2026-09-10T00:58:22.739Z Record version: sha256:b5edeb55b9cc12e2b11245f012ca73ed7f8f1bf9ee5e8e5c08d9c053637fcfea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [712-10-05-6](https://asc.understandingaccounting.org/asc/712/10/#712-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:22.739Z to 2026-09-10T00:58:22.739Z Record version: sha256:d64868b06a57cf46dd4e3ef4a0b5704c38e41334726989410d218dbabf1878f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Generally, other postemployment benefits are part of the compensation provided to an employee in exchange for service.