{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/960/40/","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.","number":"960-40","topic":"960","title":"Terminating Plans","area":"Industry","paragraphs":8,"summary":"ASC 960-40 covers defined benefit pension plans that are terminating. Once liquidation of the plan is deemed imminent (as defined in 205-30-25-2), the plan's financial statements for periods ending after that determination — including the year-end statements even if the trigger occurred mid-year — must be prepared on the liquidation basis of accounting under Subtopic 205-30. Accumulated plan benefits are measured on that liquidation basis, with all benefits generally reported as vested, and the terminating-plan or wasting-trust circumstances must be disclosed in all subsequent plan financial statements.","concepts":["terminating plan","liquidation basis of accounting","liquidation imminent","accumulated plan benefits","vested benefits","wasting trust","defined benefit pension plan"],"categories":["Subsequent measurement","Disclosure","Compensation and benefits","Industry-specific"],"level":"intermediate","topic_title":"Plan Accounting—Defined Benefit Pension Plans","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"960-40-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL29650507-196257\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/d/#defined-benefit-plan\" class=\"term\" title=\"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.)\"><span>Defined Benefit Plan</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Defined Benefit Pension Plan</strong> (1st def.)</td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#liquidation\" class=\"term\" title=\"The process by which an entity converts its assets to cash or other assets and settles its obligations with creditors in anticipation of the entity ceasing all activities. Upon cessation of the entity's activities, any remaining cash or other assets are distributed to the entity's investors or other claimants (albeit sometimes indirectly). Liquidation may be compulsory or voluntary. Dissolution of an entity as a result of that entity being acquired by another entity or merged into another entity in its entirety and with the expectation of continuing its business does not qualify as liquidation.\"><span>Liquidation</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/960/40/#960-40-05-1\" class=\"xref\">960-40-05-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><a href=\"/asc/960/40/#960-40-25-1\" class=\"xref\">960-40-25-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/asc/960/40/#960-40-25-2\" class=\"xref\">960-40-25-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/asc/960/40/#960-40-35-1\" class=\"xref\">960-40-35-1</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/asc/960/40/#960-40-35-1\" class=\"xref\">960-40-35-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2012-04/\" class=\"xref\">Accounting Standards Update No. 2012-04</a></td><td class=\"entry\">10/01/2012</td></tr><tr><td class=\"entry\"><a href=\"/asc/960/40/#960-40-35-2\" class=\"xref\">960-40-35-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nDefined Benefit Plan | Added | Accounting Standards Update No. 2014-06 | 03/14/2014 |\nDe…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:feb63f0905622687c5ec962edaae437533ccebdeb0d82813d655f56702fba418","downloaded_from":"2026-09-10T02:23:28.176Z","last_downloaded_at":"2026-09-10T02:23:28.176Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479576","source_sha256":"4ff4b1b58a93576328a20f989c652482fed7569a8fa2e766504c1beb9afc9926"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:44d2cc7e061ef80cd8bf8781126334e791e1ed4dc0c72293171d77397a20eae0","downloaded_from":"2026-09-10T02:23:28.176Z","last_downloaded_at":"2026-09-10T02:23:28.176Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479576","source_sha256":"4ff4b1b58a93576328a20f989c652482fed7569a8fa2e766504c1beb9afc9926"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:54622da21b8615f9a94c76d0d374c35597e9a10fb93226fd71d2f35bdb24a6b1","downloaded_from":"2026-09-10T02:23:28.176Z","last_downloaded_at":"2026-09-10T02:23:28.176Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479576","source_sha256":"4ff4b1b58a93576328a20f989c652482fed7569a8fa2e766504c1beb9afc9926"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"960-40-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance for <a href=\"/glossary/d/#defined-benefit-plan\" class=\"term\" title=\"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.)\"><span>defined benefit pension plans</span></a> that are <a href=\"/glossary/t/#terminating-plan\" class=\"term\" title=\"All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced.\"><span>terminating plans</span></a>.</div></div>","snippet":"This Subtopic provides guidance for defined benefit pension plans that are terminating plans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ac49637beeebf955424ce78662ac376fb327029e537428d88e4c931c72c3f722","downloaded_from":"2026-09-10T02:23:31.929Z","last_downloaded_at":"2026-09-10T02:23:31.929Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479652","source_sha256":"b91f6c973994ca105e40d854db012497e5dd7c5c59b27d69971f91d804df35b3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f4a391162e6b238d9aca6978dc7c46fb9e594c02a538a71049057dec09a3dbbe","downloaded_from":"2026-09-10T02:23:31.929Z","last_downloaded_at":"2026-09-10T02:23:31.929Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479652","source_sha256":"b91f6c973994ca105e40d854db012497e5dd7c5c59b27d69971f91d804df35b3"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d7fb88739ced9d48a2236f6c9bca7763495c14ee1e3e1869d7e7f27caeccb1cb","downloaded_from":"2026-09-10T02:23:31.929Z","last_downloaded_at":"2026-09-10T02:23:31.929Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479652","source_sha256":"b91f6c973994ca105e40d854db012497e5dd7c5c59b27d69971f91d804df35b3"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"960-40-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section <a altsource=\"GUID-173F8A2B-E18D-4298-AA82-1E09F89E5220.ditamap\" class=\"ditamap\">960-10-15</a>).</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section 960-10-15).","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c149dbe2661fce341a8c1c05924e9169badf671b9dcb96b10e3e4aa72075f037","downloaded_from":"2026-09-10T02:23:34.327Z","last_downloaded_at":"2026-09-10T02:23:34.327Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479622","source_sha256":"ff9617881d83169c73bcaf677d390744862a07f72d4eeaa604238aa42ed60075"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cf48ba6c65e592f2feb12aa2957740a99353f30d316dcd90041ae6fcf58226d7","downloaded_from":"2026-09-10T02:23:34.327Z","last_downloaded_at":"2026-09-10T02:23:34.327Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479622","source_sha256":"ff9617881d83169c73bcaf677d390744862a07f72d4eeaa604238aa42ed60075"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2fbccaad7347384ba953eb830fd6be9859b465d8371cabd1454addab06de0a39","downloaded_from":"2026-09-10T02:23:34.327Z","last_downloaded_at":"2026-09-10T02:23:34.327Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479622","source_sha256":"ff9617881d83169c73bcaf677d390744862a07f72d4eeaa604238aa42ed60075"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"960-40-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_1C48E531-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If <a href=\"/glossary/l/#liquidation\" class=\"term\" title=\"The process by which an entity converts its assets to cash or other assets and settles its obligations with creditors in anticipation of the entity ceasing all activities. Upon cessation of the entity's activities, any remaining cash or other assets are distributed to the entity's investors or other claimants (albeit sometimes indirectly). Liquidation may be compulsory or voluntary. Dissolution of an entity as a result of that entity being acquired by another entity or merged into another entity in its entirety and with the expectation of continuing its business does not qualify as liquidation.\"><span>liquidation</span></a> of a plan is deemed to be imminent (as defined in paragraph <a href=\"/asc/205/30/#205-30-25-2\" class=\"xref\">205-30-25-2</a>) before the end of the plan year, the plan's year-end financial statements shall be prepared using the liquidation basis of accounting in accordance with Subtopic <a altsource=\"GUID-F0CE4D19-6B2D-4FC1-8D41-8831E94834AC.ditamap\" class=\"ditamap\">205-30</a>. </span></span></div></div>","snippet":"If liquidation of a plan is deemed to be imminent (as defined in paragraph 205-30-25-2) before the end of the plan year, the plan's year-end financial statements shall be prepared using the liquidation basis of accountin…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6e4eca025f98ed6f81cbab48a7b948fc2585e1be53e34af7763a768f0837fdde","downloaded_from":"2026-09-10T02:23:39.040Z","last_downloaded_at":"2026-09-10T02:23:39.040Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479599","source_sha256":"c046c0bc80ef2389e4d885a061c03def82836532c7c38ead8d7659424515ec48"}},{"citation":"960-40-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_1C48E69E-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Plan financial statements for periods ending after the determination that liquidation is imminent are prepared using the liquidation basis of accounting. </span></span></div></div>","snippet":"Plan financial statements for periods ending after the determination that liquidation is imminent are prepared using the liquidation basis of accounting.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:03643c3c6774641e0770d20c1e46de459cc1b64035851e684fc6900f250fc539","downloaded_from":"2026-09-10T02:23:39.040Z","last_downloaded_at":"2026-09-10T02:23:39.040Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval 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class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2013-07</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2013-07.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9bba8710df48d2bab48d330dfe1a697d2a3ee6db0962f7ed7740826eb24c7aef","downloaded_from":"2026-09-10T02:23:42.813Z","last_downloaded_at":"2026-09-10T02:23:42.813Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479506","source_sha256":"1e6b7f897d6469bfa06c4ff97ae6bc5d77208c6722bc1f742dbde9545cd66471"}},{"citation":"960-40-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_1C5C97DE-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For <a href=\"/glossary/t/#terminating-plan\" class=\"term\" title=\"All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced.\"><span>terminating plan</span></a> assets, accumulated plan benefits shall be determined using the liquidation basis of accounting (see Subtopic <a altsource=\"GUID-F0CE4D19-6B2D-4FC1-8D41-8831E94834AC.ditamap\" class=\"ditamap\">205-30</a>), and their value may differ from the actuarial present value of accumulated plan benefits reported for an ongoing plan. In general, upon termination all benefits should be reported as vested. </span></span></div></div>","snippet":"For terminating plan assets, accumulated plan benefits shall be determined using the liquidation basis of accounting (see Subtopic 205-30), and their value may differ from the actuarial present value of accumulated plan …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:413e76b1daf6a2a1d96bdfcd46a5b784a8922dea154ed5c5b393bba81070604c","downloaded_from":"2026-09-10T02:23:42.813Z","last_downloaded_at":"2026-09-10T02:23:42.813Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479506","source_sha256":"1e6b7f897d6469bfa06c4ff97ae6bc5d77208c6722bc1f742dbde9545cd66471"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:02b3c872cf9a37acdfb8953cca3d83b90b398ea0940643e260bfeba4bda8dcae","downloaded_from":"2026-09-10T02:23:42.813Z","last_downloaded_at":"2026-09-10T02:23:42.813Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479506","source_sha256":"1e6b7f897d6469bfa06c4ff97ae6bc5d77208c6722bc1f742dbde9545cd66471"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d88d9fb8f2f59db666f39352cd2dd5bf4e1c9214d671286d8f4c4538bb6db929","downloaded_from":"2026-09-10T02:23:42.813Z","last_downloaded_at":"2026-09-10T02:23:42.813Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479506","source_sha256":"1e6b7f897d6469bfa06c4ff97ae6bc5d77208c6722bc1f742dbde9545cd66471"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"960-40-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_1C664D01-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">When the decision has been made to terminate a plan or when a wasting trust (that is, a plan under which participants no longer accrue benefits but that will remain in existence as long as necessary to pay already accrued benefits) exists, the relevant circumstances shall be disclosed in all subsequent financial statements issued by the plan. </span></span></div></div>","snippet":"When the decision has been made to terminate a plan or when a wasting trust (that is, a plan under which participants no longer accrue benefits but that will remain in existence as long as necessary to pay already accrue…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:07996189b8342d1315a048be84916284218227c58decdd7599cbe5532fa90f70","downloaded_from":"2026-09-10T02:23:46.986Z","last_downloaded_at":"2026-09-10T02:23:46.986Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479474","source_sha256":"1ead8785c61eacf195fa43662a4f970662f1cd28a868efe979ea4120336e3a8a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:698958e9bf9956da3a9ba128bfde9b7890ef285a81dee8f48dc1d85899c29ac2","downloaded_from":"2026-09-10T02:23:46.986Z","last_downloaded_at":"2026-09-10T02:23:46.986Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479474","source_sha256":"1ead8785c61eacf195fa43662a4f970662f1cd28a868efe979ea4120336e3a8a"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5410f075fc587154ad90ff7fa1d257460ce858fb41f14baacd657f9f34ff42e9","downloaded_from":"2026-09-10T02:23:46.986Z","last_downloaded_at":"2026-09-10T02:23:46.986Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147479474","source_sha256":"1ead8785c61eacf195fa43662a4f970662f1cd28a868efe979ea4120336e3a8a"}}],"enrichment":{"summary":"ASC 960-40 covers defined benefit pension plans that are terminating. Once liquidation of the plan is deemed imminent (as defined in 205-30-25-2), the plan's financial statements for periods ending after that determination — including the year-end statements even if the trigger occurred mid-year — must be prepared on the liquidation basis of accounting under Subtopic 205-30. Accumulated plan benefits are measured on that liquidation basis, with all benefits generally reported as vested, and the terminating-plan or wasting-trust circumstances must be disclosed in all subsequent plan financial statements.","key_points":["If liquidation of the plan is deemed imminent (per 205-30-25-2) before the end of the plan year, the plan's year-end financial statements must use the liquidation basis of accounting under Subtopic 205-30 (960-40-25-1).","All plan financial statements for periods ending after the determination that liquidation is imminent are prepared on the liquidation basis (960-40-25-2).","For terminating plan assets, accumulated plan benefits are determined using the liquidation basis, and the amount may differ from the actuarial present value of accumulated plan benefits reported for an ongoing plan (960-40-35-2).","Upon termination, in general all benefits should be reported as vested (960-40-35-2).","Once a decision to terminate is made, or when a wasting trust exists (participants no longer accrue benefits but the plan continues until accrued benefits are paid), the relevant circumstances must be disclosed in all subsequent plan financial statements (960-40-50-1).","The scope follows the Overall Subtopic scope in Section 960-10-15 (960-40-15-1)."],"categories":["Subsequent measurement","Disclosure","Compensation and benefits","Industry-specific"],"audience_level":"intermediate","student_note":"Know the trigger: it is not the formal termination date but the point at which liquidation becomes \"imminent\" under 205-30-25-2 — and that trigger flips the whole year-end statement to the liquidation basis, not just the post-trigger stub period. A common mistake is continuing to split accumulated plan benefits between vested and nonvested; on termination essentially all benefits are reported as vested.","related_topics":["205-30","960-10","960-20","960-30","962","965"],"key_concepts":["terminating plan","liquidation basis of accounting","liquidation imminent","accumulated plan benefits","vested benefits","wasting trust","defined benefit pension plan"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1902476d61680b45db6b4cf3c7fd380bf13c90afa529887ef65d5258c2ade11d","downloaded_from":"2026-09-10T02:23:28.176Z","last_downloaded_at":"2026-09-10T02:23:46.986Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"962-40","title":"Terminating Plans","topic_title":"Plan Accounting—Defined Contribution Pension 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Plans","score":0.9569,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:222cbbfe23023085b62c82653402f3d268904943594ef7b15ef9b105c306b479","downloaded_from":"2026-09-10T02:25:30.319Z","last_downloaded_at":"2026-09-10T02:25:49.530Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"962-10","title":"Overall","topic_title":"Plan Accounting—Defined Contribution Pension 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Plans","score":0.7786,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:e7cdc60c11649129333298e125157479f9b34be8f6ea2a44443a6fb904ff4f60","downloaded_from":"2026-09-10T02:22:27.759Z","last_downloaded_at":"2026-09-10T02:22:34.407Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"965-10","title":"Overall","topic_title":"Plan Accounting—Health and Welfare Benefit 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