# ASC 712-10-25: Compensation—Nonretirement Postemployment Benefits — Overall — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/712/10/#25-recognition) 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): 2026-09-10T00:58:30.412Z to 2026-09-10T00:58:30.412Z Record version: sha256:17fb62b16bd8d045b01dd16cd33d30170a5c63b4a6e8f90a01afcfc7c2a152ef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 712-10-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/712/10/#25-recognition) SEC content: no #### Special Termination Benefits ##### [712-10-25-1](https://asc.understandingaccounting.org/asc/712/10/#712-10-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:30.412Z to 2026-09-10T00:58:30.412Z Record version: sha256:68c2c09ec76f273d4e6e8270b9b4bf6777b3094fede9c700d3e4a413e6571734 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") offered as [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.") 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. #### Contractual Termination Benefits ##### [712-10-25-2](https://asc.understandingaccounting.org/asc/712/10/#712-10-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:30.412Z to 2026-09-10T00:58:30.412Z Record version: sha256:bf4a8c51943fd884c13029aefa997a97bfde66a0e1d84ffd552916424c4d48ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer that provides 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.") 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. ##### [712-10-25-3](https://asc.understandingaccounting.org/asc/712/10/#712-10-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:30.412Z to 2026-09-10T00:58:30.412Z Record version: sha256:61e6c909bda4ccaebef4318dbe13c07a36082964cb95e0af0a14844e16066518 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A situation involving special or contractual termination benefits may also constitute a curtailment to be accounted for under paragraphs [715-30-35-92 through 35-96](https://asc.understandingaccounting.org/asc/715/30/#715-30-35-92) and [715-60-35-161 through 35-171](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-161) . #### Determining the Timing and Method of Accruing Other Postemployment Benefits ##### [712-10-25-4](https://asc.understandingaccounting.org/asc/712/10/#712-10-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:30.412Z to 2026-09-10T00:58:30.412Z Record version: sha256:d378a32e85868a5777394f8db04164f83225015abeb6466ca38d0a2681796fb4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") that meet the conditions in paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) shall be accounted for in accordance with Subtopic 710-10. ##### [712-10-25-5](https://asc.understandingaccounting.org/asc/712/10/#712-10-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T00:58:30.412Z to 2026-09-10T00:58:30.412Z Record version: sha256:cf9a085f15993d86088e03caeb3613b0e29ee87e6338a841b0bec0e34b6de7e7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other postemployment benefits that are within the scope of this Subtopic and that do not meet the conditions in paragraph [710-10-25-1](https://asc.understandingaccounting.org/asc/710/10/#710-10-25-1) shall be accounted for in accordance with paragraph [450-20-25-2](https://asc.understandingaccounting.org/asc/450/20/#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.