# ASC 712-10-15: Compensation—Nonretirement Postemployment Benefits — Overall — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/712/10/#15-scope-and-scope-exceptions) Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective. Tables and mathematical or amendment markup are retained as HTML where Markdown would lose structure. Source downloaded (UTC): 2026-09-10T00:58:24.509Z to 2026-09-10T00:58:24.509Z Record version: sha256:d54dc9f16d653f690df4af1e268b6726735ecd26764b845eb254dc3c593efa21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 712-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/712/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [712-10-15-1](https://asc.understandingaccounting.org/asc/712/10/#712-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:24.509Z to 2026-09-10T00:58:24.509Z Record version: sha256:309485269837d6c235d5df8c33d86d45be0a43e5d247f538eae2258ebea463a7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Scope Section of the Overall Subtopic establishes the pervasive scope for the Compensation—Nonretirement Postemployment Benefits Topic. #### Entities ##### [712-10-15-2](https://asc.understandingaccounting.org/asc/712/10/#712-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:24.509Z to 2026-09-10T00:58:24.509Z Record version: sha256:6fea22f61f10933e03920978f9f9d3baba5d3e7658562e6324a727705901ee60 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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.") 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. #### Transactions ##### [712-10-15-3](https://asc.understandingaccounting.org/asc/712/10/#712-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:24.509Z to 2026-09-10T00:58:24.509Z Record version: sha256:77e425387fab47c54e980d17a7e62667257d57e9cc817cc4fdfc08dea31f50ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Compensation—Nonretirement Postemployment Benefits Topic applies to the following [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."): 1. a Special or contractual [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.") 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](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."), 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)](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) for a description of the meaning of accumulate or vest. ##### [712-10-15-4](https://asc.understandingaccounting.org/asc/712/10/#712-10-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:24.509Z to 2026-09-10T00:58:24.509Z Record version: sha256:0a5ceb72d7210e29a79c0e072e2afab60be06bc77d913ba60a1fa900b8ab4631 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Other Considerations ##### [712-10-15-5](https://asc.understandingaccounting.org/asc/712/10/#712-10-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:24.509Z to 2026-09-10T00:58:24.509Z Record version: sha256:00c8b05ba7ac2afca04d6d365f3109d4762b149464a8b93a3bb1a7834fba2e82 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [420-10-05-4](https://asc.understandingaccounting.org/asc/420/10/#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](https://asc.understandingaccounting.org/asc/420/10/#420-10-55-1) and Example 5 (paragraph [420-10-55-16](https://asc.understandingaccounting.org/asc/420/10/#420-10-55-16)).