# ASC 715-980-55: Compensation—Retirement Benefits — Regulated Operations — 55 Implementation Guidance and Illustrations Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/715/980/#55-implementation-guidance-and-illustrations) 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): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:3aabc5d48d3b4f29e9c40e24527243e2fed607f147f0d199ec9015dafd54ce31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 715-980-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/715/980/#55-implementation-guidance-and-illustrations) SEC content: no ##### [715-980-55-1](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:c55ef6f8d0adfdb3b0a8d90cbf79d7a8a24d7aa6069d1b43ad735e3501759609 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. All implementation guidance and illustrations assume that the entity meets the criteria of paragraph [980-10-15-2](https://asc.understandingaccounting.org/asc/980/10/#980-10-15-2) for the application of this Topic by the entity; thus recovery of any cost is probable if that cost is designated for future recovery by the regulator. #### Implementation Guidance ##### [715-980-55-2](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:3318482c7bfeaf0af0dba78412d29cc6990e27ce9c9d59c0e4163d08b5994b4b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer with regulated operations shall account for the effects of applying Subtopic 715-30 for financial reporting purposes even if another method of accounting for pensions is used for determining allowable pension cost for rate-making purposes. ##### [715-980-55-3](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:5681e7ffad7fa8123f27280abb9b7e9169bee26db98c57b5938086e0d4f23c9a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As indicated in paragraph [980-715-25-1](https://asc.understandingaccounting.org/asc/715/980/#715-980-25-1), Subtopic 715-30 applies to employers with regulated operations. ##### [715-980-55-4](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:01e30a1cc9157a05699e74ed005e424bda2ecc8c756afaea5759538f628131da Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If this Subtopic applies to the employer, and the amount of net periodic pension cost determined under the method used for rate-making purposes differs from that determined under Subtopic 715-30, the difference would be either of the following: 1. a An asset if the criteria in paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) are met 2. b A liability if the situation is as described in paragraph [980-405-25-1(b)](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1). ##### [715-980-55-5](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:af17485072a5476c1e0d6054ee956045850dccde0c0babdbf37f91ca98f88de9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Usually, continued use of different methods for rate-making purposes and general-purpose external financial reporting purposes would result in either the criteria in paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) being met or the situation described in paragraph [980-405-25-1(b)](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1). However, if pension cost determined in accordance with Subtopic 715-30 exceeds pension cost determined in accordance with the method used in setting current rates, the criteria in paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) would not be met if both of the following conditions exist: 1. a It is probable that the regulator soon will accept a change for rate-making purposes so that pension cost is determined in accordance with Subtopic 715-30. 2. b It is not probable that the regulator will provide revenue to recover the excess cost that results from the use of Subtopic 715-30 for financial reporting purposes during the period between the date that the employer adopts that Subtopic and the rate case implementing the change. ##### [715-980-55-6](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:67baa743a7fd4bb0cb9e503978586edb87027af7260791d64460fb1649affb69 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Similarly, if pension cost determined in accordance with the method used in setting current rates exceeds pension cost determined in accordance with Subtopic 715-30, the situation would not be as described in paragraph [980-405-25-1(b)](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1) if it is probable that all of the following conditions exist: 1. a The regulator soon will accept a change for rate-making purposes so that pension cost is determined in accordance with Subtopic 715-30. 2. b The regulator will not hold the employer responsible for the costs that were intended to be recovered by the current rates and that have been deferred by the change in method. 3. c The regulator will provide revenue to recover those same costs when they are eventually recognized under the method required by Subtopic 715-30. ##### [715-980-55-7](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:827240165fad63bb84becfb552e3dcff22dbbd019aa3f8ec8bbbeea7d43ca178 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because a regulator cannot eliminate a liability that was not imposed by its actions, the need to recognize the underfunded status of a [defined benefit plan](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)") as a liability under paragraphs [715-30-25-1 through 25-2](https://asc.understandingaccounting.org/asc/715/30/#715-30-25-1) is unaffected by regulation. ##### [715-980-55-8](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:d627e81941eaab87dca247251e0201675cee67883c37d7c1d0de8f4517b5f59c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See Example 1 (paragraphs [980-715-55-9](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-9)) for the employer's accounting when paragraphs [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) and [980-405-25-1(b)](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1) apply. #### Illustrations ##### [715-980-55-9](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:f621411b01d4834a76019cae01a2837d4974fc25dcc71a7a3b359fd3ce80b3cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance for recognition of postretirement pension cost in paragraph [980-715-25-1](https://asc.understandingaccounting.org/asc/715/980/#715-980-25-1). ##### [715-980-55-10](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:33efb6ed6bff68785f4a70a6bad02a10e11d4ce75b7709aa555dcd0dcbae123b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An employer with regulated operations sponsors a defined benefit pension plan that is accounted for pursuant to Subtopic 715-30. To simplify the Example, it is assumed that there are no remaining differences between amounts previously recognized as net periodic pension cost and amounts allowable for rate-making purposes. The employer's determination of net periodic pension cost under that Subtopic, however, differs from that allowable for rate-making purposes in the timing of recognition of net periodic pension cost as an expense. The following schedule shows the amounts under both bases for the years 20X0-20X3. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-BA65EB87-B8E3-42E2-AB73-54E8C03530E5-low.gif) Year Net periodic pension cost under Subtopic 715-20 Allowable for Rate-Making Difference for the Period Cumulative Difference 20X0 $120 $200 $(80) $(80) 20X1 200 100 100 20 20X2 170 140 30 50 20X3 120 200 (80) (30) ##### [715-980-55-11](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-11) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:393d395bf75a8b161c5890372cb2d8bd77aa8313765ebe53ff4f035c22717d4c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In 20X0, the amount allowable for rate-making purposes exceeds net periodic pension cost determined under Subtopic 715-30. In that case, paragraph [980-405-25-1(b)](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1) requires the amount determined under Subtopic 715-30 ($120) to be recognized as net periodic pension cost in the employer's financial statements. ##### [715-980-55-12](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-12) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:44dcbcaf6f02e1025e5577fc732beef18554df0dfc63b2c81e6a175bfd46c9b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The difference ($80) between net periodic pension cost determined under Subtopic 715-30 ($120) and that allowable for rate-making purposes ($200) is recognized as a liability (unearned revenue) and represents an amount collected or collectible for recovery of future pension cost. When that pension cost is incurred for financial reporting purposes, the liability (unearned revenue) shall be eliminated and revenue shall be recognized. ##### [715-980-55-13](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-13) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:877d9064bfe2c58bebbddb7c7c656b31bb3ae9166326bc7329a83c8f432f8736 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The journal entries to account for the accrual of net periodic pension cost and the contribution made to the pension plan during the year are as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-CA314FFC-7CBE-4A43-9ABA-22943F5BE1C4-low.gif) Journal Entry 1 Net periodic pension cost $120 Revenue 80 Pension liability $120 Unearned revenue 80 - To record net periodic pension cost for the period and the liability created by actions of the regulator - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F12F49A4-9130-460B-B197-472449BFAC1B-low.gif) Journal Entry 2 Pension liability $200 Cash $200 - To record contribution to pension plan ##### [715-980-55-14](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-14) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:da4dee068b9f109bb2d1b7a5d2874c7b3459a3ab4a99852223c97d3f8bbef8f7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. No modifications of the disclosure required by paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1) are required in this case because the accounting required by this Topic does not change the amount of net periodic pension cost recognized under Subtopic 715-30. (See the table in paragraph [980-715-55-10](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-10).) ##### [715-980-55-15](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-15) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:222eaae5221a66e2d8925a7ae04c0a6a31a8a2c8a4790dcba2a3f64e54188820 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In 20X1, the amount allowable for rate-making purposes is less than net periodic pension cost determined under Subtopic 715-30 by $100. Of that amount, $80 was allowable for rate-making purposes in 20X0. Therefore, the 20X0 unearned revenue of $80 is recognized as revenue for 20X1. Paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) requires the remaining portion of the $100 difference ($20) to be capitalized as an [incurred cost](https://asc.understandingaccounting.org/glossary/i/#incurred-cost "A cost arising from cash paid out or obligation to pay for an acquired asset or service, a loss from any cause that has been sustained and has been or must be paid for.") for which future recovery is assured by actions of the regulator. ##### [715-980-55-16](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-16) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:e8e5c7c12746af8335e84673ca5a749113e27cfbe34c1eb2378d3b0a72aa4fd1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The journal entries to account for the accrual of net periodic pension cost and the contribution made to the pension plan during the year are as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-0AD66722-0661-47B7-9983-0E469DC89F3B-low.gif) Journal Entry 1 Net periodic pension cost $180 Capitalized cost for future recovery 20 Unearned revenue 80 Pension liability $200 Revenue 80 - To record net periodic pension cost for the period and the asset created by actions of the regulator - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-19CB1CD8-56CE-425F-B88B-5B3D927B3417-low.gif) Journal Entry 2 Pension liability $100 Cash $100 - To record contribution to pension plan ##### [715-980-55-17](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-17) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:e2057cafb5151d65614e3cd97f3ef181e7c5aa5bbe5583e3eb5dd62928ecd884 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In this case, the accounting required by this Topic changes the amount of net periodic pension cost that otherwise would have been recognized under Subtopic 715-30 requiring modification of the disclosure required by paragraph [715-20-50-1(h)](https://asc.understandingaccounting.org/asc/715/20/#715-20-50-1). (See the table in paragraph [980-715-55-10](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-10).) ##### [715-980-55-18](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-18) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:696752f732070d1d2d4e621aef774ac605fe8e92d77d6c7f5e460eed95791ae2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In 20X2, the amount allowable for rate-making purposes is less than net periodic pension cost determined under Subtopic 715-30 by $30. None of that amount was allowable for rate-making purposes in prior years. Paragraph [980-340-25-1](https://asc.understandingaccounting.org/asc/340/980/#340-980-25-1) requires the $30 to be capitalized as an incurred cost for which future recovery is assured by actions of the regulator. ##### [715-980-55-19](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-19) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:74bff1078a6cccb33d8395e2c4bfa381b31dd084986ca9b201a899058933473c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The journal entries to account for the accrual of net periodic pension cost and the contribution made to the pension plan during the year are as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-E25FB726-F308-4415-9133-91E9E84A8F7C-low.gif) Journal Entry 1 Net periodic pension cost $140 Capitalized cost for future recovery 30 Pension liability $170 - To record net periodic pension cost for the period and the asset created by actions of the regulator - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-6687FE66-88B8-4E29-97BA-494E92D28F3D-low.gif) Journal Entry 2 Pension liability $140 Cash $140 - To record contribution to pension plan ##### [715-980-55-20](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-20) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:754260bd56c9de4293dfb26744aae02725d2cb8de5ea1a672ea9d4577d493113 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The situation in 20X2 is similar to that in 20X1, necessitating additional disclosure. (See the table in paragraph [980-715-55-10](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-10).) ##### [715-980-55-21](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-21) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:1d038e41807c9a09b9e3819bb47da0a896a1b1787cde2f828590f57f8d5affb5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In 20X3, the amount allowable for rate-making purposes exceeds net periodic pension cost determined under Subtopic 715-30 by $80. In prior years (20X1 and 20X2), $50 of that amount was recognized as a capitalized cost. ##### [715-980-55-22](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-22) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:d1cc5fe973022d0cab1d2caf7171d7e48172b60c4583709859d5159b0ed96dcb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accordingly, that capitalized cost ($50) is expensed in 20X3. Additionally, paragraph [980-405-25-1](https://asc.understandingaccounting.org/asc/405/980/#405-980-25-1) requires recognition of a liability (unearned revenue) equal to the remaining portion ($30) of the amount allowable for rate-making purposes in excess of net periodic pension cost determined under Subtopic 715-30 \[($200 - $120) - $50 = $30\]. When that pension cost is incurred for financial reporting purposes, the $30 liability (unearned revenue) shall be eliminated and revenue shall be recognized. ##### [715-980-55-23](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-23) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:ed85aeca734a92205f74001a42c83496394d0802cdcd922846eaa7cc10542aa2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The journal entries to account for the accrual of net periodic pension cost and the contribution made to the pension plan during the year are as follows. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-B37C13C8-1163-4AB5-8277-479353ED01EB-low.gif) Journal Entry 1 Net periodic pension cost $170 Revenue 30 Capitalized cost for future recovery $50 Pension liability 120 Unearned revenue 30 - To record net periodic pension cost for the period and the liability created by actions of the regulator - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-234D1171-8393-4D58-A736-05B150732DBF-low.gif) Journal Entry 2 Pension liability $200 Cash $200 - To record contribution to pension plan ##### [715-980-55-24](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-24) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:b08d86de20911534c54dd10c87cb171188386031af4e7be3eea2f6c0f78c96b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The situation in 20X3 is similar to that in 20X1 and 20X2, necessitating additional disclosure. (See the table in paragraph [980-715-55-10](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-10).) ##### [715-980-55-25](https://asc.understandingaccounting.org/asc/715/980/#715-980-55-25) Pending content: no Source downloaded (UTC): 2026-09-10T01:03:08.836Z to 2026-09-10T01:03:08.836Z Record version: sha256:a8ae9ee158444030599bd06a20a0259847f7e39cb979c99d90459793988c1e06 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following illustrates the disclosure of the components of net periodic pension cost for 20X0-20X3. It is assumed that there is no transition asset or obligation remaining in accumulated other comprehensive income and there are no gains or losses for the four-year period. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-30044AC7-4F9C-4579-971F-AAADAF363CDB-low.gif) 20X0 20X1 20X2 20X3 Service cost (a) $ XXX $ XXX $ XXX $ XXX Interest cost (a) XXX XXX XXX XXX Actual return on plan assets (a) (XXX) (XXX) (XXX) (XXX) Net amortization and deferral - - - - Net periodic pension cost determined under Subtopic 715-20 120 200 170 120 Amount (capitalized) expensed due to actions of the regulator (20) (30) 50 Net periodic pension cost recognized $120 $180 $140 $170 (a) Amounts are excluded for illustrative purposes only.