# ASC 715-60-25: Compensation—Retirement Benefits — Defined Benefit Plans—Other Postretirement — 25 Recognition Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/715/60/#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): 2026-09-10T01:00:39.096Z to 2026-09-10T01:00:39.096Z Record version: sha256:63eaff661c6f4fa14015a04d42ae7e139c39b14f257865fb85689e50c8870388 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-60-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/715/60/#25-recognition) SEC content: no #### Recognition of Liabilities and Assets ##### [715-60-25-1](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:39.096Z to 2026-09-10T01:00:39.096Z Record version: sha256:2b1d6bf3343a4515663ae78a20ec6d28d95b66ae0b959bd3660de63e23c43e95 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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 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. ##### [715-60-25-2](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:39.096Z to 2026-09-10T01:00:39.096Z Record version: sha256:f80f7bf9dc5a0592d0142c7db026a124844cb366d0bba15c67e3983c0c8f3f0b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraphs [715-60-35-125 through 35-126](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-125) 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. #### Participation Rights ##### [715-60-25-3](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:39.096Z to 2026-09-10T01:00:39.096Z Record version: sha256:7be4a61e508f08ead225d150ecfe88b7f52c192141077dce69084ac27dfdb544 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent that [insurance contracts](https://asc.understandingaccounting.org/glossary/i/#insurance-contract "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.") meeting the conditions for treatment as insurance contracts in paragraph [715-60-35-110](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-110) are purchased during the current period to cover [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.") attributed to service in that period (such as life insurance [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.")), the cost of those benefits shall be the cost of purchasing the coverage under the contracts, except the cost of the [participation right](https://asc.understandingaccounting.org/glossary/p/#participation-right "A purchaser's right under a participating insurance contract to receive future dividends or retroactive rate credits from the insurance entity."), which shall be recognized at the date of purchase as an asset. ### Settlements, Curtailments, and Certain Termination Benefits ##### [715-60-25-4](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:39.096Z to 2026-09-10T01:00:39.096Z Record version: sha256:2d7a685dc35b1530e1ba6b5e34e16fb919d3a0d9864a806c12a1581cde2c304a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. [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.") offered as special or contractual termination benefits shall be recognized in accordance with paragraph [715-30-25-10](https://asc.understandingaccounting.org/asc/715/30/#715-30-25-10). ##### [715-60-25-5](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:39.096Z to 2026-09-10T01:00:39.096Z Record version: sha256:1464623a285e47f25d38aaeaf86b42d2c2edb34fba3d4b9eea312859e8264290 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Situations involving special or 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.") may also result in a curtailment to be accounted for under paragraphs [715-60-35-161 through 35-171](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-161) . ##### [715-60-25-6](https://asc.understandingaccounting.org/asc/715/60/#715-60-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:00:39.096Z to 2026-09-10T01:00:39.096Z Record version: sha256:c173395e918f7a752ab80343671766652b464264462e1b16f73eae6e7dd084f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The liability and loss recognized for employees who accept an offer of special termination benefits to be provided by a [postretirement benefit plan](https://asc.understandingaccounting.org/glossary/p/#postretirement-benefit-plan "See Plan.") shall be the difference between: 1. a The [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.") for those employees, assuming that those employees ([active plan participants](https://asc.understandingaccounting.org/glossary/a/#active-plan-participant "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.")) not yet fully eligible for [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.") would terminate at their [full eligibility date](https://asc.understandingaccounting.org/glossary/f/#full-eligibility-date "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.") and that [fully eligible plan participants](https://asc.understandingaccounting.org/glossary/f/#fully-eligible-plan-participants "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.") would retire immediately, without considering any special termination benefits 2. b The accumulated postretirement benefit obligation as measured in (a) adjusted to reflect the special termination benefits. See Example 4 (paragraphs [715-60-55-135 through 55-139](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-135) ) and Example 7 (paragraphs [715-60-55-161 through 55-175](https://asc.understandingaccounting.org/asc/715/60/#715-60-55-161) ).