The following table identifies the changes made to this Subtopic.
The Codification contains several Topics for benefit plan accounting due to the differing accounting treatments for various forms of
employee benefit plans. The Topics include:
- a
Plan Accounting—Defined Benefit Pension Plans, (this Topic)
- b
Plan Accounting—Defined Contribution Pension Plans, Topic
962 - c
Plan Accounting—Health and Welfare Benefit Plans, Topic
965.
Additionally, Topic 715 addresses financial accounting and reporting for an employer that offers pension, other postretirement, and certain special or contractual benefits to its employees. The Plan Accounting—Defined Benefit Pension Plans Topic includes the following Subtopics:
- a
Overall
- b
- c
Net Assets Available for Plan Benefits
- d
Terminating Plans
- e
Presentation of Financial Statements
- f
Receivables
- g
Investments—Other
- h
Property, Plant, and Equipment.
The Overall Subtopic provides scope-related guidance for this Topic and an overview of accounting and reporting for
defined benefit pension plans.
This Topic does not require the preparation or distribution of any plan's financial statements.
Defined benefit pension plans are generally subject to certain of the reporting and other requirements of the Employee Retirement Income Security Act of 1974. In addition to establishing certain minimum standards for participation, vesting, and funding for employee benefit plans of private entities, the Act also requires annual reporting of certain information to particular governmental agencies and summarized information to plan participants. For many plans, the reporting requirements include financial statements prepared in conformity with generally accepted accounting principles (GAAP).
The reporting requirements of the Act, except for certain particular references, are not included in the Codification, but they should nonetheless be considered by those responsible for the preparation of defined benefit plan financial statements.
The following terms are widely used when addressing benefit plan accounting and reporting, yet are not included in the text of the standards:
- a
- b
- c
- d
- e
The Subtopics within the Plan Accounting—Defined Benefit Pension Plans Topic only provide incremental guidance for the entities defined in this Scope Section, or as further defined in the Scope Sections of the individual Plan Accounting—Defined Benefit Pension Plans Subtopics.
The guidance in this Topic applies to the following entities:
- a
All ongoing plans, funded or unfunded, that provide pension benefits for the employees of one or more employers or for the members of a trade or other employee association, including the following: - 1
- 2
Plans that are subject to the provisions of the Employee Retirement Income Security Act
- 3
Plans that are not subject to the provisions of the Employee Retirement Income Security Act
- 4
Plans that have no intermediary funding agency or plans that may be financed through any of the following: - i
One or more trust funds
- ii
One or more contracts with insurance entities
- iii
A combination thereof.
- b
Plans maintained outside the United States that are similar to plans maintained in the United States if financial statements of such plans are intended to conform with U.S. generally accepted accounting principles (GAAP).