# ASC 715-10-05: Compensation—Retirement Benefits — Overall — 05 Overview and Background

Source: FASB Accounting Standards Codification, Basic View

[Read online](https://asc.understandingaccounting.org/asc/715/10/#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): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:b045d6e94f8be78c07643cfd076648c4ef4b477249952386a94da50138f9d6b1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


## ASC 715-10-05: 05 Overview and Background

[Read section](https://asc.understandingaccounting.org/asc/715/10/#05-overview-and-background)

SEC content: no

##### [715-10-05-1](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-1)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:2fcd9e7ecd30644657395d8e034a9f9d98003a82a5440a38e37d0a2384dfee65

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The Compensation—Retirement Benefits Topic establishes standards of financial accounting and reporting for an employer that offers pension, other postretirement, and certain special or contractual termination benefits to its employees.

##### [715-10-05-2](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-2)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:1ba23c50d22a1c5f1e11416658eedc43ee8670beaeb2bae59bc95c5fd02dd38a

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


This Topic contains the following Subtopics:

1.  a
    
    Overall (Subtopic 715-10)
    
2.  b
    
    Defined Benefit Plans—General (Subtopic 715-20)
    
3.  c
    
    Defined Benefit Plans—Pension (Subtopic 715-30)
    
4.  cc
    
    Defined Benefit Plans—Other Postretirement (Subtopic 715-60) 
    
5.  d
    
    Defined Contribution Plans (Subtopic 715-70) 
    
6.  e
    
    Multiemployer Plans (Subtopic 715-80) 
    
7.  f
    
    [Subparagraph superseded by Accounting Standards Update No. 2017-07](https://asc.understandingaccounting.org/updates/asu-2017-07/).

##### [715-10-05-3](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-3)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:ce9087dedffbc26f0f516c98a0457d95fed797d5140c55d72d997cdd8bde99c1

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Throughout the Codification, content is structured and authored using an asset and liability model as its underlying premise. However, the original content used to populate this Topic was based on an expense recognition model rather than an asset and liability model. Because the expense recognition model focuses primarily on remeasurement, the majority of the guidance throughout this Topic is contained in the Subsequent Measurement Sections of the applicable Subtopics.

##### [715-10-05-4](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-4)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:9ae05df5f4baf48ec2761f914c97d8a5b09648fe0d07d811216dca2a4f19d379

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-07](https://asc.understandingaccounting.org/updates/asu-2017-07/).

##### [715-10-05-5](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-5)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:fb638dabb6edf82aff8f25ca47bcfb88eeedf36788ea50f23fe5e77c8c9ac35d

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/).

##### [715-10-05-6](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-6)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:344b6b81b3fa966db50ea4ec3e689e282058dfa32e5d4936a9d0c69a811982a9

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


The guidance in this Topic is derived from the basic idea that a benefit plan is an exchange between the employer and the employee. In exchange for services provided by the employee, the employer promises to provide, in addition to current wages and other benefits, an amount of retirement income or benefit. It follows from that basic view that benefits are not gratuities but instead are part of an employee's compensation, and because payment is deferred, the benefit plan is a type of deferred compensation. It also follows that the employer's obligation for that compensation is incurred when the services are rendered.

##### [715-10-05-7](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-7)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:eefb142099853f02c7c40f3930a2111754d7d1baf7b07c78cf4ee01bb55e6899

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


A benefit plan is an arrangement that is mutually understood by an employer and its employees, whereby an employer undertakes to provide its current and former employees with benefits after they retire in exchange for the employees' services over a specified period of time, upon attaining a specified age while in service, or both. Benefits may commence immediately upon termination of service or may be deferred until retired employees attain a specified age.

##### [715-10-05-8](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-8)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:2c115a3833d5a8086b6b1854f2c315d80cafbd0b0e28e792d6e39cbff0ccf6aa

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-07](https://asc.understandingaccounting.org/updates/asu-2017-07/).

##### [715-10-05-9](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-9)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:1b4cd47ab17d37107717eb54217b96e5c17aafdc9f5bbf406c2aaf545158976c

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


Because the obligation to provide benefits arises as employees render the services necessary to earn the benefits pursuant to the terms of the plan, this Topic provides guidance regarding when the cost of providing the benefits should be recognized over those employee service periods.

##### [715-10-05-10](https://asc.understandingaccounting.org/asc/715/10/#715-10-05-10)

Pending content: no

Source downloaded (UTC): 2026-09-10T00:58:48.766Z to 2026-09-10T00:58:48.766Z

Record version: sha256:30ff17ffe2dfcc36bf27cf71bf1e1124c02430eb4810b62199a43ef28048f688

Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f

Effective as of: not established by retrieval timestamps.


[Paragraph superseded by Accounting Standards Update No. 2017-07](https://asc.understandingaccounting.org/updates/asu-2017-07/).