{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/712/10/#15-scope-and-scope-exceptions","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":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"712-10-15-1","para":"15-1","html":"
The Scope Section of the Overall Subtopic establishes the pervasive scope for the Compensation—Nonretirement Postemployment Benefits Topic.
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The guidance in the Compensation—Nonretirement Postemployment Benefits Topic applies to all entities and all employers that offer or have offered termination or other postemployment benefits to employees and former employees in connection with their termination of employment or their transfer to inactive status. The benefits covered by this Topic are paid before retirement and are not paid from a pension or other postretirement plan.
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The guidance in the Compensation—Nonretirement Postemployment Benefits Topic applies to the following nonretirement postemployment benefits:
  1. a
    Special or contractual termination benefits that are payable before retirement and are not payable from a pension or other postretirement plan.
  2. b
    All types of other postemployment benefits provided to former or inactive employees, their beneficiaries, and covered dependents after employment but before retirement. Benefits may be provided in cash or in kind and may be paid as a result of a disability, layoff, death, or other event. Benefits may be paid immediately upon cessation of active employment or over a specified period of time. Employees' rights to benefits may accumulate or vest as they render service. See paragraph 710-10-25-1(b) for a description of the meaning of accumulate or vest.
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The guidance in this Topic does not apply to the following benefits:
  1. a
    Benefits provided through a pension or postretirement benefit plan (See Subtopics 715-30 and 715-60, which specify the accounting for those costs.)
  2. b
    Individual deferred compensation arrangements that are addressed by Subtopic 710-10
  3. c
    Special or contractual termination benefits, payable upon termination, from a defined benefit pension plan, or payable upon retirement, covered by Subtopic 715-30.
  4. d
    Special or contractual termination benefits other than pension (for example, welfare benefits), payable upon termination from a defined benefit other postretirement plan, or payable upon retirement, covered under Subtopic 715-60.
  5. e
    One-time termination benefits covered in Subtopic 420-10 (see the following paragraph).
  6. f
    Stock compensation plans that are addressed by Topic 718.
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As indicated in paragraph 420-10-05-4, accounting for termination benefits granted in connection with an exit or disposal activity will differ depending on whether the benefits payable are considered an enhancement to an ongoing benefit arrangement, (covered by this Subtopic or Subtopics referenced in the preceding paragraph) or provided under a one-time termination arrangement covered by Topic 420. For guidance on making this determination, see paragraph 420-10-55-1 and Example 5 (paragraph 420-10-55-16).
","snippet":"As indicated in paragraph 420-10-05-4, accounting for termination benefits granted in connection with an exit or disposal activity will differ depending on whether the benefits payable are considered an enhancement to an…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:00c8b05ba7ac2afca04d6d365f3109d4762b149464a8b93a3bb1a7834fba2e82","downloaded_from":"2026-09-10T00:58:24.509Z","last_downloaded_at":"2026-09-10T00:58:24.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481243","source_sha256":"4a07c5ac09027953cc0defb6ef30d7175d7fcfd4dc30a9bbba22b644288ab8c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c49df1598fc5f28223b6bc20efaeacadf712255348dd2d22efb5a400478d2f7c","downloaded_from":"2026-09-10T00:58:24.509Z","last_downloaded_at":"2026-09-10T00:58:24.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481243","source_sha256":"4a07c5ac09027953cc0defb6ef30d7175d7fcfd4dc30a9bbba22b644288ab8c8"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d54dc9f16d653f690df4af1e268b6726735ecd26764b845eb254dc3c593efa21","downloaded_from":"2026-09-10T00:58:24.509Z","last_downloaded_at":"2026-09-10T00:58:24.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481243","source_sha256":"4a07c5ac09027953cc0defb6ef30d7175d7fcfd4dc30a9bbba22b644288ab8c8"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d54dc9f16d653f690df4af1e268b6726735ecd26764b845eb254dc3c593efa21","downloaded_from":"2026-09-10T00:58:24.509Z","last_downloaded_at":"2026-09-10T00:58:24.509Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481243","source_sha256":"4a07c5ac09027953cc0defb6ef30d7175d7fcfd4dc30a9bbba22b644288ab8c8"}}