{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/715/60/#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":"715","topic_title":"Compensation—Retirement Benefits","subtopic":"715-60","subtopic_title":"Defined Benefit Plans—Other Postretirement","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Recognition of Liabilities and Assets","paragraphs":[{"citation":"715-60-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_C1CB8579-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">An employer that sponsors one or more single-employer defined benefit postretirement plans other than pensions shall recognize in its statement of financial position the funded statuses of those plans. </span></span> <span class=\"sfragment\" id=\"sfr_C1CB86F9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The employer shall aggregate the statuses of all overfunded plans and recognize that amount as an asset in its statement of financial position. It also shall aggregate the statuses of all underfunded plans and recognize that amount as a liability in its statement of financial position. </span></span> </div> </div>","snippet":"An employer that sponsors one or more single-employer defined benefit postretirement plans other than pensions shall recognize in its statement of financial position the funded statuses of those plans. The employer shall…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2b1d6bf3343a4515663ae78a20ec6d28d95b66ae0b959bd3660de63e23c43e95","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}},{"citation":"715-60-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_C1CB8866-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">As indicated in paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/715/60/#715-60-35-125\" class=\"xref\">715-60-35-125 through 35-126</a></div> remeasurement of both plan assets and the accumulated postretirement benefit obligation may be necessary. Upon remeasurement, a business entity shall adjust its statement of financial position in a subsequent interim period to reflect the overfunded or underfunded status of the plan consistent with that measurement date.</span></span> </div> </div>","snippet":"As indicated in paragraphs 715-60-35-125 through 35-126 remeasurement of both plan assets and the accumulated postretirement benefit obligation may be necessary. Upon remeasurement, a business entity shall adjust its sta…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f80f7bf9dc5a0592d0142c7db026a124844cb366d0bba15c67e3983c0c8f3f0b","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b85de9ef474401569459bd6a62e461174ce94bd90715839efdf7a813a836dcf4","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}},{"block":null,"heading":"Participation Rights","paragraphs":[{"citation":"715-60-25-3","para":"25-3","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_C1CB89BB-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">To the extent that <a href=\"/glossary/i/#insurance-contract\" class=\"term\" title=\"A contract in which an insurance entity unconditionally undertakes a legal obligation to provide specified benefits to specific individuals in return for a fixed consideration or premium. An insurance contract is irrevocable and involves the transfer of significant risk from the employer (or the plan) to the insurance entity.\"><span>insurance contracts</span></a> meeting the conditions for treatment as insurance contracts in paragraph <a href=\"/asc/715/60/#715-60-35-110\" class=\"xref\">715-60-35-110</a> are purchased during the current period to cover <a href=\"/glossary/p/#postretirement-benefits\" class=\"term\" title=\"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.\"><span>postretirement benefits</span></a> attributed to service in that period (such as life insurance <a href=\"/glossary/b/#benefits\" class=\"term\" title=\"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.\"><span>benefits</span></a>), the cost of those benefits shall be the cost of purchasing the coverage under the contracts, except </span></span> <span class=\"sfragment\" id=\"sfr_C1CB8AE9-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">the cost of the <a href=\"/glossary/p/#participation-right\" class=\"term\" title=\"A purchaser's right under a participating insurance contract to receive future dividends or retroactive rate credits from the insurance entity.\"><span>participation right</span></a>, which shall be recognized at the date of purchase as an asset. </span></span> </div> </div>","snippet":"To the extent that insurance contracts meeting the conditions for treatment as insurance contracts in paragraph 715-60-35-110 are purchased during the current period to cover postretirement benefits attributed to service…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7be4a61e508f08ead225d150ecfe88b7f52c192141077dce69084ac27dfdb544","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:fb7b2a1fcdcfeaac430253f8f5834ff202c023114ea575ba0faf63eee4c1ac47","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}},{"block":"Settlements, Curtailments, and Certain Termination Benefits","heading":null,"paragraphs":[{"citation":"715-60-25-4","para":"25-4","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_C1D5EDA2-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The Settlements, Curtailments, and Certain Termination Benefits Subsections provide recognition guidance for the postretirement benefit incentive to be received by employees in exchange for early termination. </span></span> <span class=\"sfragment\" id=\"sfr_C1D5EF5A-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\"> <a href=\"/glossary/p/#postretirement-benefits\" class=\"term\" title=\"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.\"><span>Postretirement benefits</span></a> offered as special or contractual termination benefits shall be recognized in accordance with paragraph <a href=\"/asc/715/30/#715-30-25-10\" class=\"xref\">715-30-25-10</a>. </span></span> </div> </div>","snippet":"The Settlements, Curtailments, and Certain Termination Benefits Subsections provide recognition guidance for the postretirement benefit incentive to be received by employees in exchange for early termination. Postretirem…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2d7a685dc35b1530e1ba6b5e34e16fb919d3a0d9864a806c12a1581cde2c304a","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}},{"citation":"715-60-25-5","para":"25-5","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_C1D5F0F1-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Situations involving special or contractual <a href=\"/glossary/t/#termination-benefits\" class=\"term\" title=\"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.\"><span>termination benefits</span></a> may also result in a curtailment to be accounted for under paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/715/60/#715-60-35-161\" class=\"xref\">715-60-35-161 through 35-171</a></div>. </span></span> </div> </div>","snippet":"Situations involving special or contractual termination benefits may also result in a curtailment to be accounted for under paragraphs 715-60-35-161 through 35-171.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1464623a285e47f25d38aaeaf86b42d2c2edb34fba3d4b9eea312859e8264290","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}},{"citation":"715-60-25-6","para":"25-6","html":"<div class=\"asc-body\"><div class=\"norm-text\"> <span class=\"sfragment\" id=\"sfr_C1D5F287-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The liability and loss recognized for employees who accept an offer of special termination benefits to be provided by a <a href=\"/glossary/p/#postretirement-benefit-plan\" class=\"term\" title=\"See Plan.\"><span>postretirement benefit plan</span></a> shall be the difference between: </span></span> <ol class=\"ol-norm\"> <li class=\"li-norm\"><span class=\"linum\">a</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_C1D5F40F-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The <a href=\"/glossary/a/#accumulated-postretirement-benefit-obligation\" class=\"term\" title=\"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.\"><span>accumulated postretirement benefit obligation</span></a> for those employees, assuming that those employees (<a href=\"/glossary/a/#active-plan-participant\" class=\"term\" title=\"Any active employee who has rendered service during the credited service period and is expected to receive benefits, including benefits to or for any beneficiaries and covered dependents, under the postretirement benefit plan. See Plan Participant.\"><span>active plan participants</span></a>) not yet fully eligible for <a href=\"/glossary/b/#benefits\" class=\"term\" title=\"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.\"><span>benefits</span></a> would terminate at their <a href=\"/glossary/f/#full-eligibility-date\" class=\"term\" title=\"The date at which an employee has rendered all of the service necessary to have earned the right to receive all of the benefits expected to be received by that employee (including any beneficiaries and dependents expected to receive benefits). Determination of the full eligibility date is affected by plan terms that provide incremental benefits expected to be received by or on behalf of an employee for additional years of service, unless those incremental benefits are trivial. Determination of the full eligibility date is not affected by plan terms that define when benefit payments commence or by an employee's current marital or dependency status.\"><span>full eligibility date</span></a> and that <a href=\"/glossary/f/#fully-eligible-plan-participants\" class=\"term\" title=\"Collectively, that group of former employees (including retirees) and active employees who have rendered service to or beyond their full eligibility date and who are expected to receive benefits under the plan, including benefits to their beneficiaries and covered dependents.\"><span>fully eligible plan participants</span></a> would retire immediately, without considering any special termination benefits </span></span> </div> </li> <li class=\"li-norm\"><span class=\"linum\">b</span> <div class=\"p\"> <span class=\"sfragment\" id=\"sfr_C1D5F596-6E93-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">The accumulated postretirement benefit obligation as measured in (a) adjusted to reflect the special termination benefits. </span></span> </div> </li> </ol>See Example 4 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/715/60/#715-60-55-135\" class=\"xref\">715-60-55-135 through 55-139</a></div>) and Example 7 (paragraphs <div class=\"xref-range displayInline\"><a href=\"/asc/715/60/#715-60-55-161\" class=\"xref\">715-60-55-161 through 55-175</a></div>).</div> </div>","snippet":"The liability and loss recognized for employees who accept an offer of special termination benefits to be provided by a postretirement benefit plan shall be the difference between:\n(a) The accumulated postretirement bene…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c173395e918f7a752ab80343671766652b464264462e1b16f73eae6e7dd084f4","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4f02f25d4e565606ddfd152d26077219f2f22d362179c26e1b964d1ce2a8c733","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63eaff661c6f4fa14015a04d42ae7e139c39b14f257865fb85689e50c8870388","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:63eaff661c6f4fa14015a04d42ae7e139c39b14f257865fb85689e50c8870388","downloaded_from":"2026-09-10T01:00:39.096Z","last_downloaded_at":"2026-09-10T01:00:39.096Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480332","source_sha256":"9b19c65b6bb2fc2f162b66a2a71ad49def73630578f60bae317810c217978e8f"}}