# ASC Topic 960: Plan Accounting—Defined Benefit Pension Plans Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/960/) 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): 2026-09-10T02:22:27.759Z to 2026-09-10T02:23:46.986Z Record version: sha256:6b3beafefe8d1d632015d5361aa87e30cc045c509994ec836fef5880afb7b952 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 960 governs financial reporting by the defined benefit pension plan itself (the employer's side is Topic 715), because the plan's net assets are the means of paying promised benefits. The Overall subtopic (960-10) sets a broad scope — all ongoing plans, funded or unfunded, ERISA or not, plus comparable non-U.S. plans reporting under U.S. GAAP — while not requiring any plan to issue financial statements. Two measurement pillars fit together: 960-20 measures the actuarial present value of accumulated plan benefits (benefits earned for service to the benefit information date, attributed under plan provisions or ratably, using pay and service as of that date and an ongoing-plan assumption), and 960-30 reports net assets available for benefits and changes in them on the accrual basis with prescribed minimum line items and a special one-line, deducted presentation for Section 401(h) account assets. 960-40 switches a plan to the liquidation basis under Subtopic 205-30 once liquidation is imminent, with benefits generally reported as vested and the terminating-plan or wasting-trust circumstances disclosed. Source downloaded (UTC): 2026-09-10T02:22:27.759Z to 2026-09-10T02:22:34.407Z Record version: sha256:b78e968d78b24080e39c306b39db320069a400271a53cae07490838e865226e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10: Plan Accounting—Defined Benefit Pension Plans — Overall ### Machine-generated study aids ```json { "summary": "ASC 960-10 is the Overall subtopic of the defined benefit pension plan accounting Topic, setting the scope of and providing an overview of financial reporting by the plan itself (not the sponsoring employer, which follows Topic 715). Defined benefit plans promise participants determinable benefits based on factors such as age, years of service, and compensation, and because the plan's net assets are the means of paying those benefits, net asset information is necessary to assess the plan's ability to pay benefits when due. The Topic applies to all ongoing plans (funded or unfunded, ERISA and non-ERISA, U.S. and comparable foreign plans reporting under U.S. GAAP) but does not itself require any plan to prepare or distribute financial statements.", "key_points": [ "Topic 960 covers plan-level accounting for defined benefit pension plans; defined contribution plans fall under Topic 962, health and welfare plans under Topic 965, and employer-side accounting under Topic 715 (960-10-05-1).", "The Topic is organized into Subtopics for Overall, Accumulated Plan Benefits, Net Assets Available for Plan Benefits, Terminating Plans, Presentation of Financial Statements, Receivables, Investments—Other, and Property, Plant, and Equipment (960-10-05-2).", "Defined benefit plans promise specified, determinable benefits based on factors such as age, years of service, and compensation, and net asset information is necessary to assess the plan's ability to pay benefits when due (960-10-05-4).", "This Topic does not require the preparation or distribution of any plan's financial statements (960-10-05-5); ERISA reporting requirements are largely outside the Codification but must still be considered by preparers (960-10-05-6 through 05-7).", "Scope covers all ongoing plans, funded or unfunded, for employees of one or more employers or members of a trade or employee association, whether or not subject to ERISA, and however financed—trust funds, insurance contracts, both, or no intermediary funding agency (960-10-15-2(a)).", "Non-U.S. plans similar to U.S. plans are within scope if their financial statements are intended to conform with U.S. GAAP (960-10-15-2(b)); government-sponsored social security plans are excluded (960-10-15-3(a)).", "Terms such as actuarial asset value, benefit security, general account, nonvested benefit information, and retired life fund are widely used in practice but are not defined in the standards (960-10-05-8)." ], "categories": [ "Industry-specific", "Compensation and benefits", "Financial statement presentation", "Presentation" ], "audience_level": "intermediate", "student_note": "The most common confusion is mixing up plan accounting (Topic 960, where the plan is the reporting entity) with employer accounting (Topic 715, the sponsor's books); a second trap is assuming GAAP requires plan financial statements, when 960-10-05-5 expressly does not—that requirement comes from ERISA.", "related_topics": [ "715", "962", "965", "960-20", "960-30", "960-40" ], "key_concepts": [ "defined benefit pension plan", "net assets available for benefits", "accumulated plan benefits", "erisa reporting", "plan-level financial statements", "ongoing plan", "trust or insurance contract funding", "scope exclusions" ] } ``` Source downloaded (UTC): 2026-09-10T02:22:27.759Z to 2026-09-10T02:22:27.759Z Record version: sha256:5afbf7902b1575ae30b2dc3752b57fa706fb16b3f403972bb3c90e32dc057445 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/960/10/#00-status) SEC content: no ##### [960-10-00-1](https://asc.understandingaccounting.org/asc/960/10/#960-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:27.759Z to 2026-09-10T02:22:27.759Z Record version: sha256:c2cccd550f920f354393e2fb9be4b8aadfb434f8de9e65a950128a00268e6105 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Service (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Service (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
960-10-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-10-05-3AmendedAccounting Standards Update No. 2014-0603/14/2014
960-10-05-4AmendedAccounting Standards Update No. 2014-0603/14/2014
960-10-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:a3abc72fc4c8b4f678279d55fa0446df5892318055bc7dbc186d8ff2b7427ef2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/960/10/#05-overview-and-background) SEC content: no ##### [960-10-05-1](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:672531f5e70985a79d1729ad9b5b4789ef98bf1328b8bde821037c32f6b4f37e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for benefit plan accounting due to the differing accounting treatments for various forms of [employee](https://asc.understandingaccounting.org/glossary/e/#employee "A person who has rendered or is presently rendering service.") [benefit](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.") plans. The Topics include: 1. a Plan Accounting—Defined Benefit Pension Plans, (this Topic) 2. b Plan Accounting—Defined Contribution Pension Plans, Topic 962 3. 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. ##### [960-10-05-2](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:a21b6803152b600c7d6873c3c250c1663ce1e580937791c8a110d3f92b2c67a1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Plan Accounting—Defined Benefit Pension Plans Topic includes the following Subtopics: 1. a Overall 2. b [Accumulated Plan Benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries.") 3. c Net Assets Available for Plan Benefits 4. d Terminating Plans 5. e Presentation of Financial Statements 6. f Receivables 7. g Investments—Other 8. h Property, Plant, and Equipment. ##### [960-10-05-3](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:64559b60728bac86630672cb752136d5f7746a0c0c6676eade73a639e6567b2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides scope-related guidance for this Topic and an overview of accounting and reporting for [defined benefit pension plans](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.)"). ##### [960-10-05-4](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:7231266d107db06e33b61cf84b890174b1a2b108e1e541a7b2fc94ecdc9bd854 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Defined benefit pension plans provide a promise to pay to participants specified benefits that are determinable and are based on such factors as age, years of [service](https://asc.understandingaccounting.org/glossary/s/#service "Employment taken into consideration under a pension plan. Years of employment before the inception of a plan constitute an employee's past service; years thereafter are classified in relation to the particular actuarial valuation being made or discussed. Years of employment (including past service) before the date of a particular valuation constitute prior service; years of employment following the date of the valuation constitute future service; a year of employment adjacent to the date of valuation, or in which such date falls, constitutes current service."), and compensation. A plan's net assets are the existing means by which it may provide benefits, therefore, [net asset information](https://asc.understandingaccounting.org/glossary/n/#net-asset-information "Information regarding the net assets available for benefits.") is necessary in assessing a plan's ability to pay benefits when due. ##### [960-10-05-5](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:03e31ed7698d74fc48011fc41af7055425616799e01b62ebc19f0f402460c89c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Topic does not require the preparation or distribution of any plan's financial statements. #### The Employee Retirement Income Security Act of 1974 ##### [960-10-05-6](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:01a347f1d938784fea1d2e6dc1b4c45ac020e1aa10e4b08c547daa3daae14766 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). ##### [960-10-05-7](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:ce6f3e9957772abf7087f554b9971825cc51cd89d43151b1deeafb026eb28c7b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [960-10-05-8](https://asc.understandingaccounting.org/asc/960/10/#960-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:29.741Z to 2026-09-10T02:22:29.741Z Record version: sha256:6c001e025829797b46445b02d11ad9b5fad133a2730900bf55c21cd130e7dd8d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following terms are widely used when addressing benefit plan accounting and reporting, yet are not included in the text of the standards: 1. a [Actuarial asset value](https://asc.understandingaccounting.org/glossary/a/#actuarial-asset-value "A value assigned by an actuary to the assets of a plan generally for use in conjunction with an actuarial cost method.") 2. b [Benefit security](https://asc.understandingaccounting.org/glossary/b/#benefit-security "The plan's present and future ability to pay benefits when due.") 3. c [General account](https://asc.understandingaccounting.org/glossary/g/#general-account "An undivided fund maintained by an insurance entity that commingles plan assets with other assets of the insurance entity for investment purposes. That is, funds held by an insurance entity that are not maintained in a separate account are in its general account.") 4. d [Nonvested benefit information](https://asc.understandingaccounting.org/glossary/n/#nonvested-benefit-information "The actuarial present value of nonvested accumulated plan benefits.") 5. e [Retired life fund](https://asc.understandingaccounting.org/glossary/r/#retired-life-fund "That portion of the funds under an immediate participation guarantee contract that is designated as supporting benefit payments to current retirees."). Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:7ae1510b5685288e31fc65950a9b1f596c49764572b12ebfb83b9c3304d75b43 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/960/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [960-10-15-1](https://asc.understandingaccounting.org/asc/960/10/#960-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:82f2633f3760749b4530776088a1e36655480c14868a47a9403494f84ae7ed21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Entities ##### [960-10-15-2](https://asc.understandingaccounting.org/asc/960/10/#960-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:f488aa31714f094a4641a1718a28b3842644e9087a1b041aafb2ab1511c53ea7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to the following entities: 1. a All ongoing plans, funded or unfunded, that provide [pension benefits](https://asc.understandingaccounting.org/glossary/p/#pension-benefits "Periodic (usually monthly) payments made pursuant to the terms of the pension plan to a person who has retired from employment or to that person's beneficiary.") for the employees of one or more employers or for the members of a trade or other [employee](https://asc.understandingaccounting.org/glossary/e/#employee "A person who has rendered or is presently rendering service.") association, including the following: 1. 1 [Subparagraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). 2. 2 Plans that are subject to the provisions of the Employee Retirement Income Security Act 3. 3 Plans that are not subject to the provisions of the Employee Retirement Income Security Act 4. 4 Plans that have no intermediary [funding agency](https://asc.understandingaccounting.org/glossary/f/#funding-agency "An organization or individual, such as a specific corporate or individual trustee or an insurance entity, that provides facilities for the accumulation of assets to be used for paying benefits under a pension plan; an organization, such as a specific life insurance entity, that provides facilities for the purchase of such benefits.") or plans that may be financed through any of the following: 1. i One or more trust funds 2. ii One or more contracts with insurance entities 3. iii A combination thereof. 2. 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). ##### [960-10-15-3](https://asc.understandingaccounting.org/asc/960/10/#960-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:31.408Z to 2026-09-10T02:22:31.408Z Record version: sha256:79371cf3a6a132f36b6bc48e55d8c4ad4bb698a04df9194613198d5017ff2ccc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic does not apply to the following entities: 1. a Government-sponsored social security plans. Source downloaded (UTC): 2026-09-10T02:22:37.329Z to 2026-09-10T02:23:03.876Z Record version: sha256:ca6d31aa10f3d35ffedb9fa6d6059295e56917d299d129903870fb0e39045675 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20: Plan Accounting—Defined Benefit Pension Plans — Accumulated Plan Benefits ### Machine-generated study aids ```json { "summary": "ASC 960-20 governs how a defined benefit pension plan measures and reports the actuarial present value of accumulated plan benefits — the benefits reasonably expected to be paid in exchange for employee service rendered to the benefit information date. Benefits are attributed using the plan's own provisions where possible and otherwise pro rata over years of service to full vesting (vested-type benefits) or to expected separation (nonvested-type benefits), measured using pay and service history as of the benefit information date under an ongoing-plan assumption. The total must be segmented at minimum into vested benefits of participants currently receiving payments, other vested benefits, and nonvested benefits, and the significant factors causing the year-to-year change must be identified.", "key_points": [ "Benefit information shall relate only to benefits reasonably expected to be paid for service rendered to the benefit information date, best represented by vested benefits, nonvested benefits expected to vest, and employees' history of pay and service (960-20-25-1 through 25-2).", "Plan provisions govern attribution to the extent possible; if the benefit per year of service is not stated or clearly determinable, it accumulates ratably over years of service to full vesting (if includable in vested benefits) or to projected separation from covered employment (if not) (960-20-25-3 through 25-4; 960-20-55-3 through 55-5).", "Accumulated plan benefits are based on pay and service as of the benefit information date; projected years of service are used only to determine expected eligibility for benefits (increased benefits, early retirement, death, disability), automatic plan-specified increases such as cost-of-living increases are recognized, benefits under insurance contracts excluded from plan assets are excluded, and plan amendments adopted after the benefit information date are not recognized (960-20-25-5).", "An assumption of an ongoing plan underlies all other assumptions, and each significant assumption must reflect the best estimate of the plan's future experience for that individual assumption; assumed rates of return must be consistent with realistically achievable returns on plan assets and the plan's investment policy, inflation assumptions must be consistent with assumed returns, and plan-paid administrative expenses must be reflected either by adjusting assumed returns or by discounting those expenses (960-20-35-1).", "As an acceptable alternative, assumptions inherent in the estimated cost of an insurance contract to provide participants their accumulated plan benefits may be used, with any other necessary assumptions selected under 960-20-35-1 (960-20-35-1A through 35-2).", "Changes in actuarial assumptions to reflect changed expected experience are changes in estimates accounted for in the year of change (and future years), never by restating prior years or presenting pro forma amounts (960-20-35-4).", "Disclosure must include accounting policies describing the method and significant assumptions (assumed rates of return, inflation rates, retirement ages), present employees' accumulated contributions and any interest rate credited, and the significant effects of plan amendments, changes in the nature of the plan, and changes in actuarial assumptions on the change in the actuarial present value of accumulated plan benefits (960-20-50-2, 50-3, 50-8)." ], "categories": [ "Compensation and benefits", "Subsequent measurement", "Presentation", "Disclosure" ], "audience_level": "advanced", "student_note": "Plan-level pension accounting is not the same as employer-level accounting under ASC 715: the plan measures accumulated plan benefits using pay and service as of the benefit information date (no projected salary increases), with future service used only to test eligibility for particular benefits. A common misunderstanding is assuming the plan's discount rate is a settlement/high-quality bond rate — here it is an expected rate of return consistent with the plan's assets and investment policy (or insurance-contract-based rates under the 960-20-35-1A alternative).", "related_topics": [ "960-10", "960-205", "960-30", "960-325", "715", "965" ], "key_concepts": [ "accumulated plan benefits", "actuarial present value", "benefit information date", "vested and nonvested benefits", "benefit attribution", "assumed rate of return", "ongoing plan assumption", "change in actuarial assumptions" ] } ``` Source downloaded (UTC): 2026-09-10T02:22:37.329Z to 2026-09-10T02:22:37.329Z Record version: sha256:83c7582af599827a71a3f92d09b0e5de2e614005fb7aa5d205144ea2c6b2540c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/960/20/#00-status) SEC content: no ##### [960-20-00-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:37.329Z to 2026-09-10T02:22:37.329Z Record version: sha256:96a876e9b31c337f58b22ca0cf8a29d48d3a97795e53923dc0af91458ba43b54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Participant (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Participant (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Pension FundAddedAccounting Standards Update No. 2014-0603/14/2014
Plan Assets (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Service (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Service (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Sponsor (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Sponsor (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Vested Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Vested Benefits (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
960-20-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-25-2AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-25-5AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-35-1 through 35-3
AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-35-11AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-35-12AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-35-17AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-45-2AmendedAccounting Standards Update No. 2012-0410/01/2012
960-20-45-3AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-45-5AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-50-4AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-50-6AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-55-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-20-55-2AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:22:40.092Z to 2026-09-10T02:22:40.092Z Record version: sha256:70f0349d3473515e087f3c2c6b02104c01d987b95692f91ee67a7767b4d3cecc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/960/20/#05-overview-and-background) SEC content: no ##### [960-20-05-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:40.092Z to 2026-09-10T02:22:40.092Z Record version: sha256:e305324782217da00d7e946cfafe644295d1c9ae64caafc28c93b2548e9f264b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on [accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries.") for [defined benefit pension plans](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.)"). Source downloaded (UTC): 2026-09-10T02:22:41.823Z to 2026-09-10T02:22:41.823Z Record version: sha256:cd605416eacab612a07067e7513dadba96b1a047401c5e00cf5c2cd1a4870e81 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/960/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [960-20-15-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:41.823Z to 2026-09-10T02:22:41.823Z Record version: sha256:4015e1698ed944a78db3f782f54d518832e84119b7bf20f1dca3af88900bfbcb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 960-10-15. Source downloaded (UTC): 2026-09-10T02:22:48.507Z to 2026-09-10T02:22:48.507Z Record version: sha256:362bb74c2f88e9b7695437d2d54ed93b4b0c16b13fd511884f1bd5093ff2df2b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/960/20/#25-recognition) SEC content: no #### Application of Plan Provisions ##### [960-20-25-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:48.507Z to 2026-09-10T02:22:48.507Z Record version: sha256:29f9b4ef32fab7431682275b3348ac8e23e64c948012720bfc58138c65c54e62 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Benefit information](https://asc.understandingaccounting.org/glossary/b/#benefit-information "The actuarial present value of accumulated plan benefits.") shall relate to the [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.") reasonably expected to be paid in exchange for [employees'](https://asc.understandingaccounting.org/glossary/e/#employee "A person who has rendered or is presently rendering service.") [service](https://asc.understandingaccounting.org/glossary/s/#service "Employment taken into consideration under a pension plan. Years of employment before the inception of a plan constitute an employee's past service; years thereafter are classified in relation to the particular actuarial valuation being made or discussed. Years of employment (including past service) before the date of a particular valuation constitute prior service; years of employment following the date of the valuation constitute future service; a year of employment adjacent to the date of valuation, or in which such date falls, constitutes current service.") to the [benefit information date](https://asc.understandingaccounting.org/glossary/b/#benefit-information-date "The date as of which the actuarial present value of accumulated plan benefits is presented."). ##### [960-20-25-2](https://asc.understandingaccounting.org/asc/960/20/#960-20-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:48.507Z to 2026-09-10T02:22:48.507Z Record version: sha256:6ed96aadf3b1ad3ed135ac1a593b3c707b5e8d871b133f130fe07775b87cdff1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following best represent the benefits attributable to service already rendered: 1. a [Vested benefits](https://asc.understandingaccounting.org/glossary/v/#vested-benefits "Benefits for which the employee's right to receive a present or future pension benefit is no longer contingent on remaining in the service of the employer. (Other conditions, such as inadequacy of the pension fund, may prevent the employee from receiving the vested benefit.) Under graded vesting, the initial vested right may be to receive in the future a stated percentage of a pension based on the number of years of accumulated credited service; thereafter, the percentage may increase with the number of years of service or of age until the right to receive the entire benefit has vested.") 2. b Nonvested benefits expected to become vested, determined primarily in accordance with the benefit accrual provision 3. c Employees' history of pay and service to the benefit information date. ##### [960-20-25-3](https://asc.understandingaccounting.org/asc/960/20/#960-20-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:48.507Z to 2026-09-10T02:22:48.507Z Record version: sha256:415af098a262ec4d74c731e510f0f43753f59a7b85ad2b688d4051417933dc32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent possible, plan provisions shall apply in recognizing [accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries."). In some plans, benefits are a specified amount for each year of service. Even if a plan does not specify a benefit for each year of service, another of its provisions (for example, a provision applicable to terminated employees or to termination of the plan—if independent of funding patterns) may indicate how to measure accumulated plan benefits. ##### [960-20-25-4](https://asc.understandingaccounting.org/asc/960/20/#960-20-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:48.507Z to 2026-09-10T02:22:48.507Z Record version: sha256:f78bc101466aca82a2c2ab66ab2c1b380ee22833502f4a1916e3a53657cd57c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the benefit for each year of service is not stated by or clearly determinable from the provisions of the plan, the benefit shall be considered to accumulate in proportion to either of the following: 1. a The ratio of the number of years of service completed to the benefit information date to the number that will have been completed when the benefit will first be fully vested, if the type of benefit is includable in vested benefits (for example, a supplemental early retirement benefit that is a vested benefit after a stated number of years of service) 2. b The ratio of completed years of service to projected years of service upon anticipated separation from covered employment, if the type of benefit is not includable in vested benefits (for example, a death or disability benefit that is payable only if death or disability occurs during active service). ##### [960-20-25-5](https://asc.understandingaccounting.org/asc/960/20/#960-20-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:48.507Z to 2026-09-10T02:22:48.507Z Record version: sha256:1572961f13bc028c29fe32c9a102556cf5b1910de48658eb724048e4dc9f82d4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In recognizing and measuring accumulated plan benefits, the following shall apply: 1. a Except as indicated in (b) and (c) of this paragraph, accumulated plan benefits shall be based on employees' history of pay and service and other appropriate factors as of the benefit information date. An illustration of the application of this guidance appears in Example 1 (see paragraph [960-20-55-6](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-6)). 2. b Projected years of service shall be a factor only in determining employees' expected eligibility for particular benefits, such as any of the following: 1. 1 Increased benefits that are granted provided a specified number of years of service are rendered (for example, a pension benefit that is increased from $9 per month to $10 per month for each year of service if 20 or more years of service are rendered) 2. 2 Early retirement benefits 3. 3 Death benefits 4. 4 Disability benefits. 3. c Automatic benefit increases specified by the plan (for example, automatic cost-of-living increases) that are expected to occur after the benefit information date shall be recognized. 4. d Benefits to be provided by means of contracts excluded from [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments—that have been segregated and restricted, usually in a trust, to provide for pension benefits. The amount of plan assets includes amounts contributed by the employer, and by employees for a contributory plan, and amounts earned from investing the contributions, less benefits paid. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Assets not segregated in a trust or otherwise effectively restricted so that they cannot be used by the employer for other purposes are not plan assets even though it may be intended that such assets be used to provide pensions. If a plan has liabilities other than for benefits, those nonbenefit obligations may be considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. Securities of the employer held by the plan are includable in plan assets provided they are transferable.") for which payments to the insurance entity have been made shall be excluded. 5. e Plan amendments adopted after the benefit information date shall not be recognized. 6. f If it is necessary to take future compensation into account in the determination of Social Security benefits, employees' compensation as of the benefit information date shall be assumed to remain unchanged during their assumed future service. Increases in the wage base or benefit level pursuant to either the existing Social Security law or possible future amendments of the law shall not be recognized. ##### [960-20-25-6](https://asc.understandingaccounting.org/asc/960/20/#960-20-25-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:48.507Z to 2026-09-10T02:22:48.507Z Record version: sha256:0e92b46346017ebae7434990e06e63834d4e6f47b46815b2a071158c658979e8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Superseded by Notice to Constituents](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T02:22:52.384Z to 2026-09-10T02:22:52.384Z Record version: sha256:18a663eec970775253d3c0ef3ab06b0cf7251d6fb5a04eb07a96f2834f6dbb12 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/960/20/#30-initial-measurement) SEC content: no ##### [960-20-30-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:52.384Z to 2026-09-10T02:22:52.384Z Record version: sha256:c3f9f3544a1f3f2f72bedcb78989edcc0ee9d890c6d26dc10a108f45ad451b49 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Section not used](https://asc.understandingaccounting.org/updates/page-1833002/). Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:3cb554be6809093be8f31b923794ef48ba49c0842473edb560fd73d33c0260fd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/960/20/#35-subsequent-measurement) SEC content: no #### Assumptions Used in Determining Benefit Information ##### [960-20-35-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:00b4c14d4556fb5b8db35814ee907a369650e6f00e1887b09c6dc42eda94b57d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. An assumption of an ongoing plan shall underlie the other assumptions used in determining the [actuarial present value of accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#actuarial-present-value-of-accumulated-plan-benefits "The amount as of a benefit information date that results from applying actuarial assumptions to the benefit amounts determined pursuant to paragraphs 960-20-25-3960-20-25-4960-20-25-5 (that is, the accumulated plan benefits), with the actuarial assumptions being used to adjust those amounts to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the benefit information date and the expected date of payment."). Every other significant assumption used in that determination and disclosed pursuant to paragraph [960-20-50-8](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-8) shall reflect the best estimate of the plan's future experience solely with respect to that individual assumption. As to certain assumptions, all of the following shall apply: 1. a Assumed rates of return shall reflect the expected rates of return during the periods for which payment of benefits is deferred and shall be consistent with returns realistically achievable on the types of assets held by the plan and the plan's investment policy. To the extent that assumed rates of return are based on values of existing plan assets, the values used in determining assumed rates of return shall be the values presented in the plan's financial statements pursuant to the requirements of the Plan Accounting—Defined Benefit Pension Plans Topic. 2. b Expected rates of inflation assumed in estimating automatic cost-of-living adjustments shall be consistent with the assumed rates of return. 3. c Administrative expenses expected to be paid by the plan (not those paid by the [sponsor](https://asc.understandingaccounting.org/glossary/s/#sponsor "In the case of a pension plan established or maintained by a single employer, the employer; in the case of a plan established or maintained by an employee entity, the employee entity; in the case of a plan established or maintained jointly by two or more employers or by one or more employers and one or more employee entities, the association, committee, joint board of trustees, or other group of representatives of the parties that have established or that maintain the pension plan.")) that are associated with providing accumulated plan benefits shall be reflected either by appropriately adjusting the assumed rates of return or by assigning those expenses to future periods and discounting them to the benefit information date. ##### [960-20-35-1A](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-1A) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:c360747b5d30ce3a85d036ce753c59455685473c33aa7ceba70fe6703e814036 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In selecting certain assumptions to be used in determining the actuarial present value of accumulated plan benefits, an acceptable alternative to that discussed in the preceding paragraph is to use those assumptions that are inherent in the estimated cost at the [benefit information date](https://asc.understandingaccounting.org/glossary/b/#benefit-information-date "The date as of which the actuarial present value of accumulated plan benefits is presented.") to obtain a contract with an insurance entity to provide participants with their [accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries."). Those other assumptions that are necessary but are not inherent in that estimated cost shall be selected pursuant to the requirements of the preceding paragraph. ##### [960-20-35-2](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:8a1073dd096fea8cae8c4fe9dc68809877c183451b189b6039b7ba0fed4efe3d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For plans below a certain size, that alternative may be preferable to selection of certain assumptions (for example, mortality rates) appropriate for the [participant](https://asc.understandingaccounting.org/glossary/p/#participant "Any employee or former employee, or any member or former member of a trade or other employee association, or the beneficiaries of those individuals, for whom there are pension plan benefits or other accumulated plan benefits.") group because the validity of actuarial assumptions is dependent on the law of large numbers. The use of insurance entity premium rates might also reduce for some plans the cost of implementing this Subtopic. #### Changes in Assumptions ##### [960-20-35-3](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:f9f859f4e4a71b0684feb5b3fe3382b0530a7c8282a346b20fba7e8348990b65 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following discusses the consideration of certain factors related to changes in assumptions used to calculate a plan's accumulated [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."). ##### [960-20-35-4](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:cc0d243bb78c03202a4d88128b86abf452e8958256b5cdc42330bec373d8918c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in actuarial assumptions made to reflect changes in the plan's expected experience shall be viewed as changes in estimates. That is, the effects of those changes shall be accounted for in the year of change (or in the year of change and future years if the change affects both) and shall not be accounted for by restating amounts reported in financial statements for prior years or by reporting pro forma amounts for prior years. ##### [960-20-35-5](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:d7dfab860ffe35b2254b98f5e4e3825c8e13224e5ecde59fcb8ce8272353bab1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Assumed rates of return used to determine the actuarial present value of accumulated plan benefits may change periodically due to changes in expected rates of return or as changes occur in the factors affecting estimates. A change in assumed rates of return need not necessarily result when a decision is made to replace fixed-income securities currently held with lower-rated fixed-income securities because the higher yield associated with the lower-rated securities reflects increased risk. Accordingly, a higher ultimate return on the aggregate investment portfolio may not result. ##### [960-20-35-6](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:871c83d9529326d48a91df60ecacb2d082d01f63011eb4d6b6fb3ae87b47f9b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The assumed rates of return required by this Subtopic relate to the periods for which payment of benefits is deferred and therefore encompass the periods on which automatic cost-of-living adjustments are based. Paragraph [960-20-35-10](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-10) discusses a relationship between assumed rates of inflation and assumed rates of return. ##### [960-20-35-7](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:c220dcd3a81a003f93a411607b0a209862d4c659c91aa317df8ab269de8340b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The determination of assumed rates of return for most plans is, to a significant degree, a matter of judgment. ##### [960-20-35-8](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:6002db17ccf25b867638919c87dd47ce80a39daa3498595c9b170b1c898421c1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Thus, various factors shall be considered in estimating rates of return to be used in determining the actuarial present value of accumulated plan benefits. Among them are the following: 1. a Rates of return expected from investments currently held or available in the marketplace 2. b Rates of return expected from the reinvestment of actual returns from those investments 3. c The investment policy of the plan, including the diversity of investments currently held and expected to be held in the future. ##### [960-20-35-9](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:aa9d9066188addc5f0e4c706e03d7e39e63b8696e69ad7ee0097062c6f44e161 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Accordingly, accumulated plan benefits will generally not be discounted solely at rates of return expected on existing investments, and changes in assumed rates of return will probably not equal the change during the reporting period in either short-term or long-term interest rates. A factor to consider in assessing the extent to which short-term and long-term interest rates should impact assumed rates of return is the degree to which the timing of cash inflows from related existing or potential investments matches the timing of payments of accumulated plan benefits. However, to the extent that assumed rates of return are affected by the rates of return expected from existing investments, this Subtopic requires that those expected rates be based on the values presented for those investments in the plan's financial statements. Further, the assumed rates of return at which accumulated plan benefits are discounted shall be reconsidered in light of changes in the fair values of investments between one period and another. ##### [960-20-35-10](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:6447f854c93b0242f9a9d88144b26ed81d69d3880e43f2cab723f2751ce29bdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic requires that assumed rates of inflation used in measuring benefits attributable to automatic cost-of-living adjustments be consistent with those inherent in assumed rates of return. If an automatic cost-of-living adjustment is subject to a maximum annual percentage increase (sometimes referred to as a cap), the assumed rate of benefit increase may differ from the assumed rate of inflation. ##### [960-20-35-11](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:ac6c409c26c425701be0bf0cb6fa992154cda05740d142bd4922eeb24048267b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Pension benefits](https://asc.understandingaccounting.org/glossary/p/#pension-benefits "Periodic (usually monthly) payments made pursuant to the terms of the pension plan to a person who has retired from employment or to that person's beneficiary.") are not paid unless employees live to retirement, and they cease upon death unless there is a coannuitant, as in the case of a joint and survivor option. Therefore, accumulated plan benefits shall be adjusted to reflect participants' longevity. ##### [960-20-35-12](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:fbf8437b56070b85524b53d19a27f495389fbdd8e9aa49ca068649713a301aaf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For reasons other than death or disability, employees may cease rendering [service](https://asc.understandingaccounting.org/glossary/s/#service "Employment taken into consideration under a pension plan. Years of employment before the inception of a plan constitute an employee's past service; years thereafter are classified in relation to the particular actuarial valuation being made or discussed. Years of employment (including past service) before the date of a particular valuation constitute prior service; years of employment following the date of the valuation constitute future service; a year of employment adjacent to the date of valuation, or in which such date falls, constitutes current service."). If they do so before their pension benefits become fully vested, some or all of those benefits (depending on the plan's vesting provision) are forfeited. ##### [960-20-35-13](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:885d13beb308832ab6578088b61e0deecf8803180209634136e4986487c61711 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Nonrecognition of future withdrawals would overstate the benefits reasonably expected to become payable. Consideration of future withdrawals is also consistent with consideration of future service in determining employees' expected eligibility for increased benefits. ##### [960-20-35-14](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:11df38f5bd09c0080ca9cfa9c7f8146e41bb52b570ed4b6953afab606bedf581 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The selection of assumed rates of return at which to discount accumulated plan benefits is designed to present the net assets and [benefit information](https://asc.understandingaccounting.org/glossary/b/#benefit-information "The actuarial present value of accumulated plan benefits.") on comparable bases and is independent of the plan's benefit formula. ##### [960-20-35-15](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:50842fcaf5d3b4cd16d20a17a447c5b6e72d9ac8b7899273e0ac02eded2881ac Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because administrative expenses are incurred when making benefit payments, those expenses shall be considered in determining the benefit information. However, in similar circumstances, their use results in the disclosure (pursuant to paragraph [960-20-50-8](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-8)) of different rates of return. See paragraph [960-20-35-1(c)](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-1) for alternate methods of reflecting administrative expenses in the determination of benefit information. #### Use of Averages or Reasonable Approximations ##### [960-20-35-16](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:f2f2e63dd491c1a6b523f8095fb71f335a759380ae716db396a8571d3b9722e6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The literal application of certain of the requirements of the Plan Accounting—Defined Benefit Pension Plans Topic could require a degree of detail in recordkeeping and computation that might be unduly burdensome. Accordingly, the use of averages or other methods of approximation is appropriate, provided the results obtained are substantially the same as the results contemplated by this Topic. ##### [960-20-35-17](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:5056128681f52dbce719b45575b7168307214ebb861c86c73f94ae4de294e13d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Thus, rolling back to the beginning of the year or projecting to the end of the year detailed [employee](https://asc.understandingaccounting.org/glossary/e/#employee "A person who has rendered or is presently rendering service.") service-related data as of a date within the year may be acceptable in approximating beginning- or end-of-year [benefit information](https://asc.understandingaccounting.org/glossary/b/#benefit-information "The actuarial present value of accumulated plan benefits."). It is expected that only in unusual circumstances will projecting the data collected during a triennial valuation to a [benefit information date](https://asc.understandingaccounting.org/glossary/b/#benefit-information-date "The date as of which the actuarial present value of accumulated plan benefits is presented.") in a subsequent year satisfy the criterion of providing results that are substantially the same as those that would be obtained using data as of that latter date. An example of such unusual circumstances might be a small plan with a stable participant population. ##### [960-20-35-18](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:54.913Z to 2026-09-10T02:22:54.913Z Record version: sha256:2ee6cbfd66b408fa59f207e69023507c8de7137a7138c2f5c04d29d604365900 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The use of averages and other methods of approximation consistent with recommended actuarial practice may be useful in conjunction with other provisions of the Plan Accounting—Defined Benefit Pension Plans Topic, particularly if applied to plans sponsored by small employers. Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:918d4ad32eb6c62cdccb6803db06e20cd296a42abffb4fc66d4ac7a8a90d3357 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/960/20/#45-other-presentation-matters) SEC content: no ##### [960-20-45-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:82b97d02ae4501000aaf0fd5b08ef83fb61c092bcd5722073922904c0d4fb05b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As discussed in paragraph [960-205-45-1](https://asc.understandingaccounting.org/asc/205/960/#205-960-45-1), the annual financial statements of a plan shall include information regarding the [actuarial present value of accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#actuarial-present-value-of-accumulated-plan-benefits "The amount as of a benefit information date that results from applying actuarial assumptions to the benefit amounts determined pursuant to paragraphs 960-20-25-3960-20-25-4960-20-25-5 (that is, the accumulated plan benefits), with the actuarial assumptions being used to adjust those amounts to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the benefit information date and the expected date of payment.") as of either the beginning or end of the plan year. ##### [960-20-45-2](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:37bab06967d74c6266e5602e98dae331e798e2dc31a6b381828cf8d4daaa5bbf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain flexibility is allowed in presenting the information regarding the actuarial present value of accumulated plan benefits and the year-to-year changes therein. That information may be presented on the face of one or more financial statements or in notes thereto. Regardless of the format selected, each category of information shall be presented in its entirety in the same location. If a statement format is selected for either category, a separate statement may be used to present that information or, provided the information is as of the same date or for the same period, that information may be presented together with information regarding the [net assets available for benefits](https://asc.understandingaccounting.org/glossary/n/#net-assets-available-for-benefits "The difference between a plan's assets and its liabilities. For purposes of this definition, a plan's liabilities do not include participants' accumulated plan benefits.") and the year-to-year changes therein. #### Actuarial Present Value of Accumulated Plan Benefits ##### [960-20-45-3](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:388a0ba572e57ba56327aabd0b760fd302e5e3706950fa8c7ace1c483f2b71e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The total actuarial present value of accumulated plan benefits as of the [benefit information date](https://asc.understandingaccounting.org/glossary/b/#benefit-information-date "The date as of which the actuarial present value of accumulated plan benefits is presented.") shall be segmented into at least the following categories: 1. a [Vested benefits](https://asc.understandingaccounting.org/glossary/v/#vested-benefits "Benefits for which the employee's right to receive a present or future pension benefit is no longer contingent on remaining in the service of the employer. (Other conditions, such as inadequacy of the pension fund, may prevent the employee from receiving the vested benefit.) Under graded vesting, the initial vested right may be to receive in the future a stated percentage of a pension based on the number of years of accumulated credited service; thereafter, the percentage may increase with the number of years of service or of age until the right to receive the entire benefit has vested.") of participants currently receiving payments, including [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.") due and payable as of the benefit information date 2. b Other vested benefits 3. c Nonvested benefits. ##### [960-20-45-4](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:3d1caf6f4750aca80cd6ec40568660ef759b575ee923506de0d4be0857dfa375 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Such minimum segmentation is useful in assessing a plan's near-term versus long-range liquidity requirements. It might also provide some indication of the relative degree of objectivity or subjectivity inherent in determining the [benefit information](https://asc.understandingaccounting.org/glossary/b/#benefit-information "The actuarial present value of accumulated plan benefits.") and will provide information needed by those who wish to make certain judgments or wish to compute certain financial ratios, for example, [net asset information](https://asc.understandingaccounting.org/glossary/n/#net-asset-information "Information regarding the net assets available for benefits.") to [vested benefit information](https://asc.understandingaccounting.org/glossary/v/#vested-benefit-information "The actuarial present value of vested accumulated plan benefits."). ##### [960-20-45-5](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:b9eb63d489abd3a088457631517b66dfda032317171b1c8327bcc55879ae1107 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information regarding [accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries.") shall relate only to pension obligations. Even in situations in which separate financial statements are not prepared for a related health and welfare benefit plan, obligations related to retiree health benefits provided pursuant to Section 401(h) of the Internal Revenue Code shall not be reported in the statement of accumulated plan benefits of the [defined benefit pension 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.)") financial statements. #### Changes in the Actuarial Present Value of Accumulated Plan Benefits ##### [960-20-45-6](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:9ccfc03b53a7ce68ec5fed6fed73919d1f2e18a37b1cc5ed537d5482b7edb24e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If significant, either individually or in the aggregate, the effects of certain factors affecting the change in the actuarial present value of accumulated plan benefits from the preceding to the current benefit information date shall be identified. Effects that are individually significant shall be separately identified. ##### [960-20-45-7](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:9bf7f3ddb8be09c19bdba15d0a03d4633aa0c6fe2dedbc0c8105ec7339c4b607 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effects of factors comprising the net change in the benefit information will vary depending on the order in which the effects are calculated. No order for such determination is prescribed by this Subtopic. ##### [960-20-45-8](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:6c95b73e74658782e25c95c0105a214de914bc30a84764f3d6c77338db935c16 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information regarding changes in the actuarial present value of accumulated plan benefits may be presented in either of the following ways: 1. a In a statement that accounts for the change between two benefit information dates 2. b Elsewhere in the financial statements. ##### [960-20-45-9](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:57.487Z to 2026-09-10T02:22:57.487Z Record version: sha256:577e2041e781e332c9a02098854b5e609c576df467902e19ca887ee22de449c7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If only the minimum required disclosure is presented, presentation in a statement format will necessitate an additional unidentified other category to reconcile the beginning and ending amounts. Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:fa1f59e337955ca3024d0c009db89748b3fac3e042eac1e6ba6956fa9afb66b7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/960/20/#50-disclosure) SEC content: no ##### [960-20-50-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:db55549bc76c20aca39194df90be1a7bbd371cc5e29b86eb5cd196ca2201c675 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [960-20-45-2](https://asc.understandingaccounting.org/asc/960/20/#960-20-45-2) for required information regarding the [actuarial present value of accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#actuarial-present-value-of-accumulated-plan-benefits "The amount as of a benefit information date that results from applying actuarial assumptions to the benefit amounts determined pursuant to paragraphs 960-20-25-3960-20-25-4960-20-25-5 (that is, the accumulated plan benefits), with the actuarial assumptions being used to adjust those amounts to reflect the time value of money (through discounts for interest) and the probability of payment (by means of decrements such as for death, disability, withdrawal, or retirement) between the benefit information date and the expected date of payment.") and the year-to-year changes therein that, if not presented in the basic financial statements, shall be disclosed in the notes to financial statements. #### Actuarial Present Value of Accumulated Plan Benefits ##### [960-20-50-2](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:718eb6a4fa25512b2fbac2bd8caee7d65e8fec24bec8e3761c9d0c70ddeddaa6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Present employees' accumulated contributions as of the [benefit information date](https://asc.understandingaccounting.org/glossary/b/#benefit-information-date "The date as of which the actuarial present value of accumulated plan benefits is presented.") (including interest, if any) shall be disclosed. If interest has been credited on employees' contributions, the rate(s) shall be disclosed. #### Changes in the Actuarial Present Value of Accumulated Plan Benefits ##### [960-20-50-3](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:0482edc20ed3dfadd87819d595e5f71865e2211aabf843e5d9d972f92c17432d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effects of certain factors affecting the change in the actuarial present value of accumulated plan benefits from the preceding to the current benefit information date shall be identified. Minimum disclosure shall include the significant effects of factors such as the following: 1. a Plan amendments 2. b Changes in the nature of the plan (for example, a plan spinoff or a merger with another plan) 3. c Changes in actuarial assumptions. Plans that measure the actuarial present value of accumulated plan benefits by insurance entity rates pursuant to the alternative approach described in paragraph [960-20-35-1A](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-1A) shall, if practicable, disclose the effects of changes in actuarial assumptions reflected in changes in those insurance rates. ##### [960-20-50-4](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:2ce84d4c069c647c14f815031655530065262da861b34c10ba4e42c1d03cf763 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The significant effects of other factors may also be identified, including, for example, the following: 1. a [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.") accumulated (Actuarial experience gains or losses may be included with the effects of additional benefits accumulated rather than being separately disclosed; if the effects of changes in actuarial assumptions discussed in (c) of the preceding paragraph cannot be separately disclosed, those effects shall be included in benefits accumulated.) 2. b The increase (for interest) as a result of the decrease in the discount period 3. c Benefits paid. ##### [960-20-50-5](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:de76ef80f6b773bfbf7790324358d66d1d17b00bfdb425cd3b7a4156080ac373 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of the effects of all significant factors affecting the year-to-year change in the [benefit information](https://asc.understandingaccounting.org/glossary/b/#benefit-information "The actuarial present value of accumulated plan benefits.") is encouraged. ##### [960-20-50-6](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:6fe481a1b7236891918e7ea3f97212ba95b786fc32d674b80aca54360ee0e4f3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If presented, benefits paid shall not include benefit payments made by an insurance entity in accordance with a contract that is excluded from [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments—that have been segregated and restricted, usually in a trust, to provide for pension benefits. The amount of plan assets includes amounts contributed by the employer, and by employees for a contributory plan, and amounts earned from investing the contributions, less benefits paid. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Assets not segregated in a trust or otherwise effectively restricted so that they cannot be used by the employer for other purposes are not plan assets even though it may be intended that such assets be used to provide pensions. If a plan has liabilities other than for benefits, those nonbenefit obligations may be considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. Securities of the employer held by the plan are includable in plan assets provided they are transferable."). However, amounts paid by the plan to an insurance entity pursuant to such a contract (including purchasing annuities with amounts allocated from existing investments with the insurance entity) shall be included in benefits paid. Due to the use of different actuarial assumptions, the amount paid by the plan to an insurance entity may be different from the previous measure of the actuarial present value of the related [accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries."). That difference is an actuarial experience gain or loss (see paragraph [960-20-50-4](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-4)). ##### [960-20-50-7](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:54c273f4781e6b64b0fe7684f0a02244211fdd6f9f30f5053e7feaf6cd4eaf3e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the minimum required disclosure is presented in other than a statement format, the actuarial present value of accumulated plan benefits as of the preceding benefit information date shall also be presented. #### Additional Financial Statement Disclosures ##### [960-20-50-8](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:e2516104b62e5472101030c126ff5bd138561059bc42ecd36e376d9ea0b95f41 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of the plan's accounting policies shall include a description of the method and significant assumptions used to determine the actuarial present value of accumulated plan benefits, such as the following: 1. a Assumed rates of return 2. b Inflation rates 3. c Retirement ages. ##### [960-20-50-9](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:e7baec21c8671341ac9825e0cd8bdb35f3b19df17df9fd0cd439e089ba7d82e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Any significant changes of method or assumptions between benefit information dates shall be described. ##### [960-20-50-10](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:d4285aee68b93d8f69018b6200b7f39e88132cd03f487b8461990c3f8de66f17 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the method of considering administrative expenses as an adjustment of the assumed rates of return is used as described in paragraph [960-20-35-1(c)](https://asc.understandingaccounting.org/asc/960/20/#960-20-35-1), the adjustment shall be separately disclosed (see paragraph [960-20-50-8](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-8)). ##### [960-20-50-11](https://asc.understandingaccounting.org/asc/960/20/#960-20-50-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:22:59.930Z to 2026-09-10T02:22:59.930Z Record version: sha256:e3a031d3b54044b37c447ae363a017b284be21ababca76d2974825a13e1e4124 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The usefulness of plan financial statements would be enhanced by disclosure of the estimated effect on the benefit information, or on the difference between the [net asset information](https://asc.understandingaccounting.org/glossary/n/#net-asset-information "Information regarding the net assets available for benefits.") and the benefit information, of a given variation in the assumptions to which that information is most sensitive. Plans are encouraged to experiment with such disclosure. Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:8817d93de9d521d28c9e2022a6100a169aa8d25f290aa8550992dce4f8660362 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-20-55: 55 Implementation Guidance and Illustrations [Read section](https://asc.understandingaccounting.org/asc/960/20/#55-implementation-guidance-and-illustrations) SEC content: no #### Implementation Guidance ##### [960-20-55-1](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:43b3dec334cbaa6535d286410668e7cab015ff6cddbe56f1e55949d1b73d9e48 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For purposes of illustration, the following discussion is in terms of an individual [employee](https://asc.understandingaccounting.org/glossary/e/#employee "A person who has rendered or is presently rendering service."). In practice, such [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 be recognized on an aggregate rather than individual basis because it is usually not possible to predict whether and when an individual employee will become disabled (or elect early retirement, die in active [service](https://asc.understandingaccounting.org/glossary/s/#service "Employment taken into consideration under a pension plan. Years of employment before the inception of a plan constitute an employee's past service; years thereafter are classified in relation to the particular actuarial valuation being made or discussed. Years of employment (including past service) before the date of a particular valuation constitute prior service; years of employment following the date of the valuation constitute future service; a year of employment adjacent to the date of valuation, or in which such date falls, constitutes current service."), and so forth). It is, however, possible to estimate the disability (or early retirement, death, and so forth) benefits expected to become payable for a group of employees through the application of appropriate probability factors. The basic principle, however, is the same whether the computations are performed on an aggregate or an individual basis. ##### [960-20-55-2](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:482f5e26a4f33cf48f13c478d588b7aeb44b628481c5b042ceab0b6038aacfb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For certain types of benefits, the amount attributable to each year of service cannot be directly determined from the plan's provisions. The manner in which such benefits should be considered to accumulate depends on whether the benefit is includable in [vested benefits](https://asc.understandingaccounting.org/glossary/v/#vested-benefits "Benefits for which the employee's right to receive a present or future pension benefit is no longer contingent on remaining in the service of the employer. (Other conditions, such as inadequacy of the pension fund, may prevent the employee from receiving the vested benefit.) Under graded vesting, the initial vested right may be to receive in the future a stated percentage of a pension based on the number of years of accumulated credited service; thereafter, the percentage may increase with the number of years of service or of age until the right to receive the entire benefit has vested."). ##### [960-20-55-3](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:2d62f21eeb6a8c4abc6a2568e6f49954248563673f4cef1485373089053ec995 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To illustrate, assume a plan provides a supplemental early retirement benefit of $200 per month upon early retirement at age 55 with at least 25 years of service, payable from the date of early retirement until age 62 (the eligibility age for collecting Social Security benefits). If that benefit becomes a vested benefit after 25 years of service, it should be considered to accumulate in proportion to the ratio of the number of years of service completed to the [benefit information date](https://asc.understandingaccounting.org/glossary/b/#benefit-information-date "The date as of which the actuarial present value of accumulated plan benefits is presented.") to the projected number of years of service that will have been completed when the benefit first becomes fully vested. Therefore, 1/25 of the $200 benefit (that is, $8) is attributed to each year of service (assuming the employee is expected to render at least 25 years of service). ##### [960-20-55-4](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:f300e54200fcc97201de7a46c04db4be069085f751b3708a732a29dcd222176c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In the case of a benefit that does not become a vested benefit (for example, a $5,000 death benefit that is payable only if death occurs during active service), the benefit should be considered to accumulate in proportion to the ratio of the number of years of service completed at the benefit information date to the number of years of service completed at the estimated time of separation from covered employment. ##### [960-20-55-5](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:42b4313d053e6de55d4d82a5af2366459fdef1f74e8d27d5ac289f8a40fb5714 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if the foregoing $5,000 death benefit is expected to be paid after the 20th year of service (that is, the employee is expected to die at the end of the 20th year of service), 1/20 of the benefit should be attributed to each year of service. Thus, after 5 years of service, the employee's accumulated death benefit is $1,250. In determining the [benefit information](https://asc.understandingaccounting.org/glossary/b/#benefit-information "The actuarial present value of accumulated plan benefits."), such probability factors are used to estimate whether an employee will render at least 25 years of service, and whether and when that employee will elect early retirement. #### Illustrations ##### [960-20-55-6](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:36b9c9cb17f835de0ba393113fe945b0bf1bf41ea6507144ece463cdb1f7c461 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example illustrates the guidance in paragraph [960-20-25-5(a) through 25-5(b)](https://asc.understandingaccounting.org/asc/960/20/#960-20-25-5). ##### [960-20-55-7](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:b1f0bf55fea88df2c926b2b198cc4ac5d807b4bd0fe3b2528bc2a29287d6b61e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. It is assumed that the actuary uses a full range of decrements including termination rates and disablement rates at ages below age 65, early retirement rates at ages when eligible below age 65, and normal retirement rates at ages 65 and over. ##### [960-20-55-8](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:3a1aebc567c78d1101a0b6e68b5c063593c16cadd11c78a23ba97f800a6e7e10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Example has the following assumptions: 1. a Benefit rate of $10 per month per year of service 2. b Normal retirement at age 65, irrespective of service; retirement not compulsory 3. c Unreduced immediate benefit upon early retirement from active employment at age 62 with 20 years of service 4. d Unreduced immediate benefit upon early retirement from active employment before age 62 with 30 years of service; Social Security make-up benefit of $200 per month payable until age 62 5. e Reduced immediate benefit upon early retirement from active employment after age 55 and before age 62 with 20 years of service; reduction is 4% for each year by which retirement precedes age 62 6. f Unreduced immediate benefit upon total and permanent disability before age 65 with 10 years of service 7. g Deferred vested benefit, commencing at age 65, upon termination with 10 years of service; benefit payments (at full actuarially reduced value) may also be elected to commence as early as age 55 if 20 or more years of service have been completed 8. h Spouse's benefit upon death in service after meeting eligibility requirements for early or normal retirement (30 years of service, age 55 and 20 years of service, or age 65) equal to $5 per month per year of service. ##### [960-20-55-9](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:ef76c4d2f5d7054bd4ee61702629248e61fb8fb09f082bf964d4a76b1843e62d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table illustrates the measurement of [accumulated plan benefits](https://asc.understandingaccounting.org/glossary/a/#accumulated-plan-benefits "Future benefit payments that are attributable under the provisions of a pension plan to employees' service rendered to the benefit information date. Accumulated plan benefits comprise benefits expected to be paid to any of the following: Retired or terminated employees or their beneficiaries Beneficiaries of deceased employees Present employees or their beneficiaries."). - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-F9A17F02-4BC0-4095-A903-74EB8C70B0EA-low.gif) Type of Benefit Payable Upon Separation From Service at Ages Amount of Benefit Benefit Starts at Duration of Benefit Age 25 and 5 Years of Service (1) Deferred Vested 30-49 $50 Age 65 Life (2) Unreduced Early 50-64 50 Retirement Life (3) Social Security Makeup 50-61 33 (a) Retirement To Age 62 (4) Normal 65 and Over 50 Retirement Life (5) Spouse 50 and Over 25 Death in Service Life of Spouse (6) Disability 30-64 50 Disablement Life Age 40 and 5 Years of Service (1) Deferred Vested 45-54 $50 Age 65 Life (2) Reduced Early 55-61 $36 at Age 55 Increasing $2 a Year to age 65 Retirement Life (3) Unreduced Early 62-64 50 Retirement Life (4) Normal 65 and Over 50 Retirement Life (5) Spouse 55 and Over 25 Death in Service Life of Spouse (6) Disability 45-64 50 Disablement Life Age 45 and 10 Years of Service (1) Deferred Vested 45-54 $100 Age 65 Life (2) Reduced Early 55-61 $72 at Age 55 Increasing $4 a Year to Age 61 Retirement Life (3) Unreduced Early 62-64 100 Retirement Life (4) Normal 65 and Over 100 Retirement Life (5) Spouse 55 and Over 50 Death in Service Life of Spouse (6) Disability 45-64 100 Disablement Life Age 50 and 20 Years of Service (1) Deferred Vested 50-54 $200 Age 65 Life (2) Reduced Early 55-59 $144 at Age 55 Increasing $8 a Year to Age 59 Retirement Life (3) Unreduced Early 60-64 200 Retirement Life (4) Social Security Makeup 60-61 133 (a) Retirement To Age 62 (5) Normal 65 and Over 200 Retirement Life (6) Spouse 55 and Over 100 Death in Service Life of Spouse (7) Disability 50-64 200 Disablement Life Age 50 and 30 Years of Service (1) Unreduced Early 50-64 $300 Retirement Life (2) Social Security Makeup 50-61 200 (a) Retirement To Age 62 (3) Normal 65 and Over 300 Retirement Life (4) Spouse 50 and Over 150 Death in Service Life of Spouse (5) Disability 50-64 300 Disablement Life Age 60 and 10 Years of Service (1) Deferred Vested 60-64 $100 Age 65 Life (2) Normal 65 and Over 100 Retirement Life (3) Spouse 65 and Over 50 Death in Service Life of Spouse (4) Disability 60-64 100 Disablement Life (a) "Because this benefit type is one which is includible in the computation of the present value of vested benefits, the $200 monthly benefit is assumed to accrue uniformly over the first 30 years of service (see paragraph 960-20-25-5\[b\]\[2\]). If, on the other hand, there had been specified a benefit that never is includible in the computation of the present value of vested benefits, such as a $200 monthly benefit payable in the event of the employee's death after 30 years of service, the accrued death benefit to be valued in the age 25 and 5 years of service example would have been $33 (5/30 of $200) for death at age 50, $32 (5/31 of $200) for death at age 51, and so forth." ##### [960-20-55-10](https://asc.understandingaccounting.org/asc/960/20/#960-20-55-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:03.876Z to 2026-09-10T02:23:03.876Z Record version: sha256:ba8460f5a4adc8564a7a3b139ce1a125cf01e64bd067fbb29bb9fbe1cc9c9e54 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If, in this Example, there were a maximum service limit of 30 years applicable at normal or early retirement or disablement, with a pro rata portion of the expected normal retirement benefit payable on vested termination, the only changes in the amount of benefit would be for the deferred vested benefit. - ![ ](https://asc.understandingaccounting.org/asc-img/GUID-9DFE1051-02E8-4BF2-B8BE-9A02AD3960CB-low.gif) Age 25 and 5 Years of Service $33 (5/45 of $300) Age 50 and 20 Years of Service $171 (20/35 of $300) Source downloaded (UTC): 2026-09-10T02:23:06.305Z to 2026-09-10T02:23:25.079Z Record version: sha256:1cae2433ca4059c43e1ed30696ac1d85f6e70e51ae54c30bed8b14e94bfaf798 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-30: Plan Accounting—Defined Benefit Pension Plans — Net Assets Available for Plan Benefits ### Machine-generated study aids ```json { "summary": "ASC 960-30 governs how a defined benefit pension plan reports its net assets available for benefits and the changes in those net assets. Information must be prepared on the accrual basis and presented in enough detail to identify the plan's resources available for benefits and the significant changes during the year (960-30-25-1; 960-30-45-1). It also prescribes the minimum line items in the statement of changes and the special single-line presentation of assets held in a Section 401(h) account, which may not be counted as available for pension benefits.", "key_points": [ "Net assets available for benefits information must be prepared using the accrual basis of accounting and presented in reasonable detail to identify resources available for benefits (960-30-25-1).", "Interest income earned and rebate interest paid from securities lending activity are recorded on the statement of changes in net assets available for benefits (960-30-25-2).", "At a minimum, changes in net assets must show net appreciation (depreciation) in fair value (including realized gains/losses and unrealized changes), other investment income, employer contributions segregated between cash and noncash (noncash at fair value with nature described), participant contributions, contributions from other sources, benefits paid, payments to insurance entities for excluded contracts, administrative expenses, and other significant changes such as transfers to or from other plans (960-30-45-2).", "Separate disclosure of realized gains and losses on investments sold during the year is neither required nor proscribed (960-30-45-3).", "Because 401(h) account assets cannot be used to satisfy pension obligations, they are excluded from total net assets available for pension benefits and shown as a single line item, deducted as a separate line in the liabilities section, with a caption denoting they relate to the health and welfare plan (960-30-45-4 through 45-8).", "The statement of changes in net assets reports only pension plan changes—not the components of changes in the 401(h) account—except qualified transfers to the 401(h) account and unused/unspent qualified transfer amounts (including allocated income) that should have been but were not returned to the pension plan (960-30-45-9 through 45-10).", "Plan administrators may use judgment on additional subclassifications, such as separately reporting, netting, or including refunds of terminated employees' contributions (960-30-45-1)." ], "categories": [ "Presentation", "Compensation and benefits", "Financial statement presentation", "Industry-specific" ], "audience_level": "intermediate", "student_note": "Exam questions here usually test the required minimum line items in the statement of changes and the 401(h) trap: those assets are shown as a single line and deducted as a liability, never included in net assets available for pension benefits, and only qualified transfers (not the account's internal activity) hit the statement of changes.", "related_topics": [ "960-10", "960-20", "960-40", "960-205", "965", "962" ], "key_concepts": [ "net assets available for benefits", "statement of changes in net assets", "accrual basis of accounting", "net appreciation in fair value", "employer and participant contributions", "401(h) account", "securities lending income", "benefits paid" ] } ``` Source downloaded (UTC): 2026-09-10T02:23:06.305Z to 2026-09-10T02:23:06.305Z Record version: sha256:36a66e8a9340559381934016a50776e1dd627deea4db7688d81be6924c0fe64a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/960/30/#00-status) SEC content: no ##### [960-30-00-1](https://asc.understandingaccounting.org/asc/960/30/#960-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:06.305Z to 2026-09-10T02:23:06.305Z Record version: sha256:87ed451316ca6bea05686220c78e4f411c070b55030a13abda73012e8da9992c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
BenefitsAmendedAccounting Standards Update No. 2016-1912/14/2016
Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Benefits (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Pension Benefits (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Plan Assets (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Sponsor (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
Sponsor (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
960-30-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-30-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-30-45-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-30-45-2AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
960-30-45-2AmendedAccounting Standards Update No. 2014-0603/14/2014
960-30-45-4AmendedAccounting Standards Update No. 2014-0603/14/2014
960-30-45-5AmendedAccounting Standards Update No. 2014-0603/14/2014
960-30-45-10AmendedAccounting Standards Update No. 2014-0603/14/2014
960-30-45-11SupersededAccounting Standards Update No. 2017-0602/27/2017
960-30-50-1 through 50-3
SupersededAccounting Standards Update No. 2017-0602/27/2017
960-30-50-1AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
960-30-50-2AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
Source downloaded (UTC): 2026-09-10T02:23:09.551Z to 2026-09-10T02:23:09.551Z Record version: sha256:e1f83928f5c572bf9c11e1f69b095edfa0230cbcc3294ec2a1e92787930108cc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/960/30/#05-overview-and-background) SEC content: no ##### [960-30-05-1](https://asc.understandingaccounting.org/asc/960/30/#960-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:09.551Z to 2026-09-10T02:23:09.551Z Record version: sha256:5df44bea4a359f78eb2e46d54fa36d2feba3faab61af840daae229b48e42eb8c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on net assets available for plan [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.") for [defined benefit pension plans](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.)"). Source downloaded (UTC): 2026-09-10T02:23:12.148Z to 2026-09-10T02:23:12.148Z Record version: sha256:b737f0d8b6207f71ee83df93305a7fc4383c813c3f98993c50c2294b3ef850b5 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/960/30/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [960-30-15-1](https://asc.understandingaccounting.org/asc/960/30/#960-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:12.148Z to 2026-09-10T02:23:12.148Z Record version: sha256:86ba7523fb684b08f152784ccdef6a4c270729c49dee9d21f3d1d731f40824c3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 960-10-15. Source downloaded (UTC): 2026-09-10T02:23:19.912Z to 2026-09-10T02:23:19.912Z Record version: sha256:a17c26f8120e268871f7910d3a8549ace5272461a1137692e2ae3d7d703b8c0c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/960/30/#25-recognition) SEC content: no #### Use of Accrual Basis of Accounting ##### [960-30-25-1](https://asc.understandingaccounting.org/asc/960/30/#960-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:19.912Z to 2026-09-10T02:23:19.912Z Record version: sha256:c2ac04e315282207ec84c8cf28e79fdc015fdfeb86c78d258af0fb2f75b7d463 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The accrual basis of accounting shall be used in preparing information regarding the [net assets available for benefits](https://asc.understandingaccounting.org/glossary/n/#net-assets-available-for-benefits "The difference between a plan's assets and its liabilities. For purposes of this definition, a plan's liabilities do not include participants' accumulated plan benefits."). The information shall be presented in such reasonable detail as is necessary to identify the plan's resources that are available 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."). #### Interest Income and Rebate Interest Paid ##### [960-30-25-2](https://asc.understandingaccounting.org/asc/960/30/#960-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:19.912Z to 2026-09-10T02:23:19.912Z Record version: sha256:4d1b8d961f4f6adfdfc9dcbdce1ef76e6986c6aaec7fadf23669a1c71ab3286e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The interest income earned and rebate interest paid as a result of securities lending activity shall be recorded on the statement of changes in net assets available for benefits. Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:e3b44eb7ed6a2f38dd4bbaebefe8d42ef12be228129c0f109c0b307557020704 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/960/30/#45-other-presentation-matters) SEC content: no #### Changes in Net Assets Available for Benefits ##### [960-30-45-1](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:20e2f7f2181343dddfada4f549df9cc7aafb0cc4e4a1782f9b7c05a65ce2f318 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information regarding changes in [net assets available for benefits](https://asc.understandingaccounting.org/glossary/n/#net-assets-available-for-benefits "The difference between a plan's assets and its liabilities. For purposes of this definition, a plan's liabilities do not include participants' accumulated plan benefits.") shall be presented in enough detail to identify the significant changes during the year. This guidance is not intended to limit the amount of detail or manner of presenting information regarding changes in the [net asset information](https://asc.understandingaccounting.org/glossary/n/#net-asset-information "Information regarding the net assets available for benefits."). Subclassifications and additional classifications may be useful. For example, separately reporting refunds of terminated employees' contributions may be useful. Alternatively, such refunds may be netted against contributions received from participants or included in [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.") paid. Accordingly, [plan administrators](https://asc.understandingaccounting.org/glossary/p/#plan-administrator "The person or group of persons responsible for the content and issuance of a plan's financial statements in much the same way that management is responsible for the content and issuance of a business entity's financial statements.") should use their best judgment in light of the relevant circumstances. ##### [960-30-45-2](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:5f4b2573211d2812484b86cabada8de9caaf85335f064840235c47ec5304754b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information about changes in net assets available for benefits is intended to present the effects of significant changes in net assets during the year and shall present, at a minimum, all of the following: 1. a The net appreciation (depreciation) in fair value. Net appreciation or depreciation includes realized gains and losses on investments that were both purchased and sold during the period as well as unrealized appreciation or depreciation of the investments held at year-end. 2. b Investment income (exclusive of (a)). 3. c Contributions from the employer, segregated between cash and noncash contributions. A noncash contribution shall be recorded at fair value. The nature of noncash contributions shall be described, either parenthetically or in a note. 4. d Contributions from participants, including those transmitted by the [sponsor](https://asc.understandingaccounting.org/glossary/s/#sponsor "In the case of a pension plan established or maintained by a single employer, the employer; in the case of a plan established or maintained by an employee entity, the employee entity; in the case of a plan established or maintained jointly by two or more employers or by one or more employers and one or more employee entities, the association, committee, joint board of trustees, or other group of representatives of the parties that have established or that maintain the pension plan."). 5. e Contributions from other identified sources (for example, state subsidies or federal grants). 6. f Benefits paid to participants. 7. g Payments to insurance entities to purchase contracts that are excluded from plan assets. Paragraph [960-205-50-1(e)](https://asc.understandingaccounting.org/asc/205/960/#205-960-50-1) requires disclosure of the plan's dividend income related to excluded contracts and permits that income to be netted against this item. 8. h Administrative expenses. 9. i Other changes (for example, transfers of assets to or from other plans) should also be presented if they are significant. ##### [960-30-45-3](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:21720c7c1e040989c2bb734296f37ca8540e065c3cf53e5a86a2436ce0065636 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Separate disclosure of realized gains and losses on investments sold during the year is neither required nor proscribed. #### 401(h) Accounts ##### [960-30-45-4](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:0b58a1929798bf1f12734162caead3456d5af9dc68536668b9565a826a20ee6c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Because 401(h) net assets may not be used to satisfy pension obligations, the total of net assets available for [pension benefits](https://asc.understandingaccounting.org/glossary/p/#pension-benefits "Periodic (usually monthly) payments made pursuant to the terms of the pension plan to a person who has retired from employment or to that person's beneficiary.") shall not include assets held in a [401(h) account](https://asc.understandingaccounting.org/glossary/h/#401-h-accounts "A postretirement medical-benefit component provided in some defined benefit pension plans in addition to the normal retirement benefits of the plan, pursuant to Section 401(h) of the Internal Revenue Code.") related to obligations of the health and welfare benefit plan. ##### [960-30-45-5](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:723233a1f14694a55020123afd1b74586abb0905bec09a1a8480a53a3424e640 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The 401(h) account assets less liabilities (net assets of the 401(h) account) are required to be shown in [defined benefit pension 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.)") financial statements as a single line item on the face of the statements as illustrated in Example 2 (see paragraph [960-205-55-2](https://asc.understandingaccounting.org/asc/205/960/#205-960-55-2)). ##### [960-30-45-6](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:d85bec02d725f3fe1f7c349db79ceaeda0a8eac569564a43a7fa3352c3a14a87 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Those net assets related to the 401(h) account also shall be deducted before arriving at the total of net assets available for pension benefits. ##### [960-30-45-7](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:1161caa2ef7afed8cda282e502f455fb196feb8eaaf16fd4cf47c25bc05b78b0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In deducting those net assets, the amount relating to 401(h) features shall be presented as a separate line item in the liabilities section of the statement of net assets available for pension benefits. ##### [960-30-45-8](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:e6a11d9d9ea606a264b7c072ac582052ce39fc01e74eeb00bfe1fc1f015adac6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial statement caption shall clearly denote that the net assets held in the 401(h) account relate to obligations of the health and welfare plan or arrangement. ##### [960-30-45-9](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:54e7e5350c64b4de88baf3864790b3654953dbaaf3ae61182b3ef16bcce92233 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of changes in net assets shall show only the changes in net assets of the pension plan and not any of the components of the changes in the net assets in the 401(h) account. ##### [960-30-45-10](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:c1d1e74c934fe24f2b99d494ceff925beaf441b5bbc94cf17da19854cc823edc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The only amounts that shall be reported in the statement of changes in net assets are qualified transfers to the 401(h) account and/or any unused or unspent amounts (including allocated income) in the 401(h) account at the end of the year that were qualified transfers of excess pension [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments—that have been segregated and restricted, usually in a trust, to provide for pension benefits. The amount of plan assets includes amounts contributed by the employer, and by employees for a contributory plan, and amounts earned from investing the contributions, less benefits paid. Plan assets ordinarily cannot be withdrawn by the employer except under certain circumstances when a plan has assets in excess of obligations and the employer has taken certain steps to satisfy existing obligations. Assets not segregated in a trust or otherwise effectively restricted so that they cannot be used by the employer for other purposes are not plan assets even though it may be intended that such assets be used to provide pensions. If a plan has liabilities other than for benefits, those nonbenefit obligations may be considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. Securities of the employer held by the plan are includable in plan assets provided they are transferable.") that should have been but were not transferred back to the defined benefit pension plan. ##### [960-30-45-11](https://asc.understandingaccounting.org/asc/960/30/#960-30-45-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:22.904Z to 2026-09-10T02:23:22.904Z Record version: sha256:f206b3006744ba5f7779479fd14ee817276813348490a2ea3d8495a0d5c08102 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-06](https://asc.understandingaccounting.org/updates/asu-2017-06/). Source downloaded (UTC): 2026-09-10T02:23:25.079Z to 2026-09-10T02:23:25.079Z Record version: sha256:4fb10b27e581f8756db61166f545ef27f1103a1fb5092cb1f72c11f1af7ae9f4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/960/30/#50-disclosure) SEC content: no ##### [960-30-50-1](https://asc.understandingaccounting.org/asc/960/30/#960-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:25.079Z to 2026-09-10T02:23:25.079Z Record version: sha256:0ca0da58e63bb92621da21a16ddefc909514eb7b2c44aff6a39c5279497e6284 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-06](https://asc.understandingaccounting.org/updates/asu-2017-06/). ##### [960-30-50-2](https://asc.understandingaccounting.org/asc/960/30/#960-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:25.079Z to 2026-09-10T02:23:25.079Z Record version: sha256:b360f65abd71c0f6143c80e8eb9ef8e80a9485cb5a41b24e1fe04727e4677792 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-06](https://asc.understandingaccounting.org/updates/asu-2017-06/). ##### [960-30-50-3](https://asc.understandingaccounting.org/asc/960/30/#960-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:25.079Z to 2026-09-10T02:23:25.079Z Record version: sha256:2d10c6772f54089fe01ffa0e6b47e2c4e1843a0475d2a69343425d9c8efd9a7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2017-06](https://asc.understandingaccounting.org/updates/asu-2017-06/). Source downloaded (UTC): 2026-09-10T02:23:28.176Z to 2026-09-10T02:23:46.986Z Record version: sha256:b2ac51fd578b37d7572e0eb40e0bcf4f8b46940166f3a9cab3f42d08901edbc6 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-40: Plan Accounting—Defined Benefit Pension Plans — Terminating Plans ### Machine-generated study aids ```json { "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" ] } ``` Source downloaded (UTC): 2026-09-10T02:23:28.176Z to 2026-09-10T02:23:28.176Z Record version: sha256:54622da21b8615f9a94c76d0d374c35597e9a10fb93226fd71d2f35bdb24a6b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-40-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/960/40/#00-status) SEC content: no ##### [960-40-00-1](https://asc.understandingaccounting.org/asc/960/40/#960-40-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:28.176Z to 2026-09-10T02:23:28.176Z Record version: sha256:feb63f0905622687c5ec962edaae437533ccebdeb0d82813d655f56702fba418 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The following table identifies the changes made to this Subtopic.
ParagraphActionAccounting Standards UpdateDate
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Pension Plan (1st def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
LiquidationAddedAccounting Standards Update No. 2013-0704/22/2013
960-40-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
960-40-25-1AmendedAccounting Standards Update No. 2013-0704/22/2013
960-40-25-2AmendedAccounting Standards Update No. 2013-0704/22/2013
960-40-35-1SupersededAccounting Standards Update No. 2013-0704/22/2013
960-40-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
960-40-35-2AmendedAccounting Standards Update No. 2013-0704/22/2013
Source downloaded (UTC): 2026-09-10T02:23:31.929Z to 2026-09-10T02:23:31.929Z Record version: sha256:d7fb88739ced9d48a2236f6c9bca7763495c14ee1e3e1869d7e7f27caeccb1cb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-40-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/960/40/#05-overview-and-background) SEC content: no ##### [960-40-05-1](https://asc.understandingaccounting.org/asc/960/40/#960-40-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:31.929Z to 2026-09-10T02:23:31.929Z Record version: sha256:ac49637beeebf955424ce78662ac376fb327029e537428d88e4c931c72c3f722 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance for [defined benefit pension plans](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.)") that are [terminating plans](https://asc.understandingaccounting.org/glossary/t/#terminating-plan "All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced."). Source downloaded (UTC): 2026-09-10T02:23:34.327Z to 2026-09-10T02:23:34.327Z Record version: sha256:2fbccaad7347384ba953eb830fd6be9859b465d8371cabd1454addab06de0a39 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/960/40/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [960-40-15-1](https://asc.understandingaccounting.org/asc/960/40/#960-40-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:34.327Z to 2026-09-10T02:23:34.327Z Record version: sha256:c149dbe2661fce341a8c1c05924e9169badf671b9dcb96b10e3e4aa72075f037 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic (see Section 960-10-15). Source downloaded (UTC): 2026-09-10T02:23:39.040Z to 2026-09-10T02:23:39.040Z Record version: sha256:2a1b959b388ea903796c481021e4558f3a865e26a0a2e39dda1e85fbb7e04cb8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-40-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/960/40/#25-recognition) SEC content: no ##### [960-40-25-1](https://asc.understandingaccounting.org/asc/960/40/#960-40-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:39.040Z to 2026-09-10T02:23:39.040Z Record version: sha256:6e4eca025f98ed6f81cbab48a7b948fc2585e1be53e34af7763a768f0837fdde Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If [liquidation](https://asc.understandingaccounting.org/glossary/l/#liquidation "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.") of a plan is deemed to be imminent (as defined in paragraph [205-30-25-2](https://asc.understandingaccounting.org/asc/205/30/#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 accounting in accordance with Subtopic 205-30. ##### [960-40-25-2](https://asc.understandingaccounting.org/asc/960/40/#960-40-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:39.040Z to 2026-09-10T02:23:39.040Z Record version: sha256:03643c3c6774641e0770d20c1e46de459cc1b64035851e684fc6900f250fc539 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan financial statements for periods ending after the determination that liquidation is imminent are prepared using the liquidation basis of accounting. Source downloaded (UTC): 2026-09-10T02:23:42.813Z to 2026-09-10T02:23:42.813Z Record version: sha256:d88d9fb8f2f59db666f39352cd2dd5bf4e1c9214d671286d8f4c4538bb6db929 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-40-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/960/40/#35-subsequent-measurement) SEC content: no ##### [960-40-35-1](https://asc.understandingaccounting.org/asc/960/40/#960-40-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:42.813Z to 2026-09-10T02:23:42.813Z Record version: sha256:9bba8710df48d2bab48d330dfe1a697d2a3ee6db0962f7ed7740826eb24c7aef Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2013-07](https://asc.understandingaccounting.org/updates/asu-2013-07/). ##### [960-40-35-2](https://asc.understandingaccounting.org/asc/960/40/#960-40-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:42.813Z to 2026-09-10T02:23:42.813Z Record version: sha256:413e76b1daf6a2a1d96bdfcd46a5b784a8922dea154ed5c5b393bba81070604c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For [terminating plan](https://asc.understandingaccounting.org/glossary/t/#terminating-plan "All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced.") 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 benefits reported for an ongoing plan. In general, upon termination all benefits should be reported as vested. Source downloaded (UTC): 2026-09-10T02:23:46.986Z to 2026-09-10T02:23:46.986Z Record version: sha256:5410f075fc587154ad90ff7fa1d257460ce858fb41f14baacd657f9f34ff42e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 960-40-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/960/40/#50-disclosure) SEC content: no ##### [960-40-50-1](https://asc.understandingaccounting.org/asc/960/40/#960-40-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:46.986Z to 2026-09-10T02:23:46.986Z Record version: sha256:07996189b8342d1315a048be84916284218227c58decdd7599cbe5532fa90f70 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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.