# ASC 715-60-15: Compensation—Retirement Benefits — Defined Benefit Plans—Other Postretirement — 15 Scope and Scope Exceptions Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/715/60/#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): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:0038579d115cc497d776ea29e9d6a220fda5fa7b4b8bc1678bf20256ee9f81f5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-60-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/715/60/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [715-60-15-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:9959ee9627f742890c8b279f01dfc7e6697ceacb9fbded04b82da81b17073c72 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 715-10-15, with specific qualifications and exceptions noted below. ##### [715-60-15-2](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:ebe7e7ff45c3d1092f80486c4057ddf5a16b6bbceeaefed8bcf5b7c380e561d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The General Subsection of this Section establishes the pervasive scope of this Subtopic, with specific exceptions noted in the other Subsections of this Section. #### Transactions ##### [715-60-15-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:42d471441cf8c011dbe55ab6d9b027e96243ebaf32ccdd2d0750f7d7729ef1ec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections applies to the following plans and [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment."): 1. a A [single-employer plan](https://asc.understandingaccounting.org/glossary/s/#single-employer-plan "A pension plan or other postretirement benefit plan that is maintained by one employer. The term also may be used to describe a plan that is maintained by related parties such as a parent and its subsidiaries.") that defines the [postretirement benefits](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefits "All forms of benefits, other than retirement income, provided by an employer to retirees. Those benefits may be defined in terms of specified benefits, such as health care, tuition assistance, or legal services, that are provided to retirees as the need for those benefits arises, such as certain health care benefits, or they may be defined in terms of monetary amounts that become payable on the occurrence of a specified event, such as life insurance benefits.") to be provided to [retirees](https://asc.understandingaccounting.org/glossary/r/#retirees "Collectively, that group of plan participants that includes retired employees, their beneficiaries, and covered dependents."). This includes postretirement benefits expected to be provided by an employer to current and former employees (including retirees, disabled employees, and other former employees who are expected to receive postretirement benefits), their beneficiaries, and covered dependents, pursuant to the terms of an employer's undertaking to provide those benefits. ##### [715-60-15-4](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:596f63b2fd606199ebae7a0f7d5b11cde818d7430a2a35ab38736d6e7538c4e1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Other postretirement benefits include, but are not limited to, postretirement health care; life insurance provided outside a pension [plan](https://asc.understandingaccounting.org/glossary/p/#plan "An arrangement that is mutually understood by an employer and its employees, whereby an employer undertakes to provide its employees with benefits after they retire in exchange for their services over a specified period of time, upon attaining a specified age while in service, or a combination of both. A plan may be written or it may be implied by a well-defined, although perhaps unwritten, practice of paying postretirement benefits or from oral representations made to current or former employees. See Substantive Plan.") to retirees; and other welfare benefits such as tuition assistance, day care, legal services, and housing subsidies provided after retirement. Often those benefits are in the form of a reimbursement to plan participants or direct payment to providers for the cost of specified services as the need for those services arises, but they may also include benefits payable as a lump sum, such as death benefits. Much of the guidance in this Subtopic focuses on postretirement health care plans. Nevertheless, this Subtopic applies equally to all [postretirement benefits other than pensions](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefits-other-than-pensions "See Postretirement Benefits."). ##### [715-60-15-5](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:8fc2c466641ff57044998d5dd46217feb14ad4916c8973f03a743c4274c85754 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections applies to health and other welfare benefits expected to be provided to disabled employees, whether in cash or in kind, for example, disability medical benefits. For example, the provisions of the postretirement health care plan may provide postretirement health care coverage after a disabled employee attains a specified number of years of credited service (which may include credit for periods after the employee is disabled), with a separate disability plan that provides health benefits before that date. Or, the postretirement health care plan may have special provisions for disabled employees that entitle them to benefit coverage under the [postretirement benefit plan](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefit-plan "See Plan.") at a date earlier than that coverage would commence for other employees who are not disabled. ##### [715-60-15-6](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:d7931d71ec81c67683139b7d7e74451c2294ef50aa7dda4071a900e4f8bae58b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the General Subsections does not apply to the following plans and benefits: 1. a Pension or life insurance benefits provided through a pension plan. The accounting for those benefits is set forth in Subtopic 715-30. 2. b Disability benefits paid to former or inactive employees not on disability retirement (such benefits shall be accounted for under Topic 712). However, the measurement guidance in this Subtopic may be useful in applying the provisions of that topic. 3. c Disability income benefits paid pursuant to a pension plan (such benefits shall be accounted for under Subtopic 715-30). 4. d An employee's right to continue health care coverage under the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA). This right does not constitute a postretirement benefit plan per se because an employee need not be a retiree to receive that benefit. It is a right generally available upon termination of employment. If an employee voluntarily elects at retirement to continue health care coverage provided through the active employee health care plan and the cost to the employer of their continuing coverage exceeds the retirees' contributions, the employer shall account for the excess cost in accordance with Topic 712. #### Other Considerations ##### [715-60-15-7](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:448d46b91cfa24af3a33982c53a8eed5725af9d851350f53cfd9c9d4ca44a7d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A postretirement benefit plan may be part of a larger plan or arrangement that provides benefits currently to active employees as well as to retirees. In those circumstances, the promise to provide benefits to present and future retirees under the plan shall be segregated from the promise to provide benefits currently to active employees and shall be accounted for in accordance with the provisions of this Subtopic. ##### [715-60-15-8](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:74b837617b90743cea6080cd05d6bf4cea49fde0642caff4f092672566f1c52c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In some cases, an employer may limit its obligation through an individual or an aggregate cap on the employer's cost or benefit obligation. For example, an employer may elect to limit its annual postretirement benefit obligation for each retired [plan participant](https://asc.understandingaccounting.org/glossary/p/#plan-participant "Any employee or former employee who has rendered service in the credited service period and is expected to receive employer-provided benefits under the postretirement benefit plan, including benefits to or for any beneficiaries and covered dependents. See Active Plan Participant.") to a maximum of $5,000. Or, an employer may elect to limit its share of the aggregate cost of covered [postretirement health care benefits](https://asc.understandingaccounting.org/glossary/p/#postretirement-health-care-benefits "A form of postretirement benefit provided by an employer to retirees for defined health care services or coverage of defined health care costs, such as hospital and medical coverage, dental benefits, and eye care.") for a period to an amount determined based on an average per capita cost per retired plan participant. Plans of that nature are considered to be defined benefit postretirement plans. See paragraphs [715-60-55-96 through 55-102](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-96) for an illustration of the measurement considerations for defined dollar capped plans and paragraphs [715-60-55-2 through 55-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-2) for implementation guidance on capped plans. ##### [715-60-15-9](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:0442aaa784aea2ae1b197936ab31d4f7e96a13bbd7073004d25648d83f7dc742 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Absent evidence to the contrary, it shall be presumed that an employer that has provided postretirement benefits in the past or is currently promising those benefits to employees will continue to provide those future benefits. #### Plans with Characteristics of both a Defined Contribution and a Defined Benefit Plan ##### [715-60-15-9A](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-9A) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:ef10f51797e8d9edfd3da84ac1f54e41729cc548187761d059fda5730005ecc5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [715-70-15-2](https://asc.understandingaccounting.org/asc/715/70/#715-70-15-2) for guidance for plans with characteristics of both a defined contribution and a defined benefit plan. ### Medicare Prescription Drug, Improvement, and Modernization Act #### Overall Guidance ##### [715-60-15-10](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:4e7cc749b2fb5933742094c63f78a4ee0f7e9ce78045b7898d44cfee615dfea7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Medicare Prescription Drug, Improvement, and Modernization Act Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph [715-60-15-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-1), with specific exceptions noted below. #### Transactions ##### [715-60-15-11](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:3d1873b0ad8f31f7dba00d313762ef083f0064204e0d9a72b1368905189e3893 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Medicare Prescription Drug, Improvement, and Modernization Act Subsections applies to the following plans and [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment."): 1. a A single-employer defined benefit postretirement health care [plan](https://asc.understandingaccounting.org/glossary/p/#plan "An arrangement that is mutually understood by an employer and its employees, whereby an employer undertakes to provide its employees with benefits after they retire in exchange for their services over a specified period of time, upon attaining a specified age while in service, or a combination of both. A plan may be written or it may be implied by a well-defined, although perhaps unwritten, practice of paying postretirement benefits or from oral representations made to current or former employees. See Substantive Plan.") that has both of the following characteristics: 1. 1 The employer has concluded that prescription drug benefits available under the plan to some or all participants for some or all future years are "actuarially equivalent" to Medicare Part D and thus qualify for the subsidy under the Medicare Prescription Drug, Improvement, and Modernization Act. 2. 2 The expected subsidy will offset or reduce the employer's share of the cost of the underlying postretirement prescription drug coverage on which the subsidy is based. ##### [715-60-15-12](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:7e5322dd71ab7b775a1525a6cca77a8c37265d2768c676b5382a32e5c5bc6a93 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Medicare Prescription Drug, Improvement, and Modernization Act Subsections does not address the following: 1. a Situations that may arise in which the expected subsidy exceeds the employer's share of the cost of the underlying postretirement prescription drug coverage on which the subsidy is based 2. b Multiemployer health and welfare benefit plans. #### Other Considerations ##### [715-60-15-13](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:98f40879b3788fdbbc01c6dd425091c8907787a4940cbf165809af86ee8eb692 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Although the Medicare Prescription Drug, Improvement, and Modernization Act Subsections provide limited guidance on certain other related aspects of accounting and disclosure necessitated by the Act (for example, changes in assumed participation rates and [health care cost trend rates](https://asc.understandingaccounting.org/glossary/h/#health-care-cost-trend-rate "An assumption about the annual rates of change in the cost of health care benefits currently provided by the postretirement benefit plan, due to factors other than changes in the composition of the plan population by age and dependency status, for each year from the measurement date until the end of the period in which benefits are expected to be paid. The health care cost trend rates implicitly consider estimates of health care inflation, changes in health care utilization or delivery patterns, technological advances, and changes in the health status of the plan participants. Differing types of services, such as hospital care and dental care, may have different trend rates."), as well as income tax accounting), that guidance is not intended to supersede or in any way limit the application of other relevant authoritative literature. ### Settlements, Curtailments, and Certain Termination Benefits #### Overall Guidance ##### [715-60-15-14](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:2dd9aedb6b26cd612f1a1e2a8771d8b1892f69cbc93a5ef267a2f1630c8caeae Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Settlements, Curtailments, and Certain Termination Benefits Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph [715-60-15-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-1), with specific exceptions noted below. #### Transactions ##### [715-60-15-15](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:8d06d2c53937cb64c92d061d931033f3a94f2f4b6ed489815d131ec28e0a8725 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Settlements, Curtailments, and Certain Termination Benefits Subsections applies to the following transactions and activities: 1. a [Settlement](https://asc.understandingaccounting.org/glossary/s/#settlement-of-a-pension-or-postretirement-benefit-obligation "A transaction that is an irrevocable action, relieves the employer (or the plan) of primary responsibility for a pension or postretirement benefit obligation, and eliminates significant risks related to the obligation and the assets used to effect the settlement.") of all or a part of an employer's [accumulated postretirement benefit obligation](https://asc.understandingaccounting.org/glossary/a/#accumulated-postretirement-benefit-obligation "The actuarial present value as of a particular date of all future benefits attributed to an employee's service rendered to that date assuming the plan continues in effect and that all assumptions about future events are fulfilled. The accumulated postretirement benefit obligation generally reflects a ratable allocation of expected future benefits to employee service already rendered in the attribution period. Before an employee's full eligibility date, the accumulated postretirement benefit obligation as of a particular date for an employee is the portion of the expected postretirement benefit obligation attributed to that employee's service rendered to that date; on and after the full eligibility date, the accumulated and expected postretirement benefit obligations for an employee are the same.") or [curtailment of a postretirement benefit plan](https://asc.understandingaccounting.org/glossary/c/#curtailment-of-a-postretirement-benefit-plan "An event that significantly reduces the expected years of future service of active plan participants or eliminates the accrual of defined benefits for some or all of the future services of a significant number of active plan participants.") 2. b Other [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.") not otherwise addressed in the following: 1. 1 Topic 420 2. 2 Topic 710 3. 3 Topic 712 4. 4 Subtopic 715-30. ##### [715-60-15-16](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:0ad7b097ed108878a4d5f9e6686b6eb430809601446ccf0cba736acee68ad1e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Examples of transactions that constitute a settlement include making lump-sum cash payments to [plan](https://asc.understandingaccounting.org/glossary/p/#plan "An arrangement that is mutually understood by an employer and its employees, whereby an employer undertakes to provide its employees with benefits after they retire in exchange for their services over a specified period of time, upon attaining a specified age while in service, or a combination of both. A plan may be written or it may be implied by a well-defined, although perhaps unwritten, practice of paying postretirement benefits or from oral representations made to current or former employees. See Substantive Plan.") participants in exchange for their rights to receive specified [postretirement benefits](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefits "All forms of benefits, other than retirement income, provided by an employer to retirees. Those benefits may be defined in terms of specified benefits, such as health care, tuition assistance, or legal services, that are provided to retirees as the need for those benefits arises, such as certain health care benefits, or they may be defined in terms of monetary amounts that become payable on the occurrence of a specified event, such as life insurance benefits.") and purchasing long-term nonparticipating insurance contracts for the accumulated postretirement benefit obligation for some or all of the plan participants. ##### [715-60-15-17](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:0fd60e10a98868f2821b71208cf389a49f71ef65e40ae54adbf8dedd313723d5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Curtailments include the following: 1. a Termination of employees' services earlier than expected, which may or may not involve closing a facility or discontinuing a component of an entity 2. b Termination or suspension of a plan so that employees do not earn additional [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment.") for future service. In the latter situation, future service may be counted toward eligibility for benefits accumulated based on past service. ##### [715-60-15-18](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:71a46dd594202c0e47cf2df51021de4f728a5fd9b9fe27278a9778c4fb81fa97 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Settlements, Curtailments, and Certain Termination Benefits Subsections does not apply to the following transactions and activities: 1. a Other termination benefits addressed in the following: 1. 1 Topic 420 2. 2 Topic 710 3. 3 Topic 712 4. 4 Subtopic 715-30. ### Split-Dollar Life Insurance Arrangements #### Overall Guidance ##### [715-60-15-19](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:569ddef69dd1996a9b42a35a988143033622e5b60a295a80e8b9657f463b2fb6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Split-Dollar Life Insurance Arrangements Subsections follow the same Scope and Scope Exceptions as outlined in the General Subsection of this Subtopic, see paragraph [715-60-15-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-1), with specific exceptions noted below. #### Transactions ##### [715-60-15-20](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-20) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:decb9d30156e9bdb3d0e60f157f14c02115d50e0e8891d10eeb22922b08d5fe1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Split-Dollar Life Insurance Arrangements Subsections applies to the following plans and [benefits](https://asc.understandingaccounting.org/glossary/b/#benefits "The monetary or in-kind benefits or benefit coverage to which participants may be entitled under a pension plan or a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). Examples of benefits may include, but are not limited to, health care benefits, life insurance, legal, educational, and advisory services, pension benefits, disability benefits, death benefits, and benefits due to termination of employment."): 1. a [Endorsement split-dollar life insurance](https://asc.understandingaccounting.org/glossary/e/#endorsement-split-dollar-life-insurance "A split-dollar life insurance arrangement in which the entity owns and controls the insurance policy. The employer enters into a separate agreement that splits the policy benefits between the employer and the employee. The employer owns the policy, controls all rights of ownership, and may terminate the insurance policy (and, in turn, the policy benefits promised to the employee). To effect the split-dollar arrangement, the employer endorses a portion of the death benefits to the employee (the employee designates a beneficiary for this portion of the death benefits). Upon the death of the employee, the employee's beneficiary typically receives the designated portion of the death benefits directly from the insurance entity and the employer receives the remainder of the death benefits.") arrangements that provide a benefit to an employee that extends to postretirement periods. 2. b [Collateral split-dollar life insurance](https://asc.understandingaccounting.org/glossary/c/#collateral-split-dollar-life-insurance "A split-dollar life insurance arrangement in which the employee (or the employee's estate or a trust controlled by the employee, referred to as the employee) owns and controls the insurance policy.") arrangements that provide a benefit to an employee that extends to postretirement periods. ##### [715-60-15-21](https://asc.understandingaccounting.org/asc/715/60/#715-60-15-21) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:31.758Z to 2026-09-10T01:00:31.758Z Record version: sha256:45fc0bc7f672f2a61ea3a54f11ca631786854dfc3504dc2bd174fb5d11a172be Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in the Split-Dollar Life Insurance Arrangements Subsections does not apply to the following plans and benefits: 1. a A split-dollar life insurance arrangement that provides a specified benefit to an employee that is limited to the employee's active service period with an employer.