{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/712/10/#25-recognition","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":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Special Termination Benefits","paragraphs":[{"citation":"712-10-25-1","para":"25-1","html":" Nonretirement postemployment benefits offered as special termination benefits to employees shall be recognized as a liability and a loss when the employees accept the offer and the amount can be reasonably estimated. An employer that offers, for a short period of time, special termination benefits to employees, shall not recognize a loss at the date the offer is made based on the estimated acceptance rate. An employer that provides contractual termination benefits shall recognize a liability and a loss when it is probable that employees will be entitled to benefits and the amount can be reasonably estimated. The cost of termination benefits recognized as a liability and a loss shall include the amount of any lump-sum payments and the present value of any expected future payments. A situation involving special or contractual termination benefits may also constitute a curtailment to be accounted for under paragraphs and . Other postemployment benefits that meet the conditions in paragraph 710-10-25-1 shall be accounted for in accordance with Subtopic 710-10. Other postemployment benefits that are within the scope of this Subtopic and that do not meet the conditions in paragraph 710-10-25-1 shall be accounted for in accordance with paragraph 450-20-25-2. For example, an employer may provide any former employee on permanent disability with continued medical insurance coverage until that employee meets the requirements for participation in the employer's postretirement medical plan. If the level of benefits provided is the same for any disabled employee regardless of years of service, the cost of those benefits should be recognized when the event causing a permanent disability occurs and a reasonable estimate can be made as specified by that paragraph.