{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/962/10/#05-overview-and-background","source":"FASB Accounting Standards Codification, Basic View","usage":"Study and research edition. Verify current requirements with the official source. Summaries, enrichment, and tags are machine-generated study aids. Paragraph html preserves source markup; snippet is abbreviated. Pending content is not necessarily effective.","topic":"962","topic_title":"Plan Accounting—Defined Contribution Pension Plans","subtopic":"962-10","subtopic_title":"Overall","section":{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"962-10-05-1","para":"05-1","html":"
The Codification contains several Topics for the accounting and reporting by a plan (as opposed to an employer) due to the differing accounting treatment for various forms of employee benefit plans. The Compensation Topics address the accounting and reporting by the employer. The Plan Accounting Topics include:
  1. a
    Plan Accounting—Defined Benefit Pension Plans, Topic 960
  2. b
    Plan Accounting—Defined Contribution Pension Plans, (this Topic)
  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 termination benefits to its employees.
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The Plan Accounting—Defined Contribution Pension Plans Topic includes the following Subtopics:
  1. a
    Overall
  2. b
    Terminating Plans
  3. c
    Presentation of Financial Statements
  4. d
    Notes to Financial Statements
  5. e
    Receivables
  6. f
    Investments—Other.
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The Overall Subtopic provides guidance on the accounting and reporting for defined contribution pension plans.
","snippet":"The Overall Subtopic provides guidance on the accounting and reporting for defined contribution pension plans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:09339ec1e0ff84693866548a23253fa1e639c6bbc498d42b5e2eaa15cf69ceba","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}},{"citation":"962-10-05-4","para":"05-4","html":"
Information relevant to the primary users of defined contribution plan financial statements—plan participants—is different from that which is relevant to users of defined benefit plan financial statements. In defined contribution plans, plan participants have a greater vested interest in monitoring the financial condition and operations of the plan since they bear investment risk under these plans and plan transactions can directly affect their benefits.
","snippet":"Information relevant to the primary users of defined contribution plan financial statements—plan participants—is different from that which is relevant to users of defined benefit plan financial statements. In defined con…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:470c7da0f3b7b8bd59e1c378ef65fced3c4057d3cdfc842bbc4d5c68fe49d854","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}},{"citation":"962-10-05-5","para":"05-5","html":"
Consistent with the objective of a defined contribution plan's financial statements, net assets available for benefits of defined contribution plans should be measured and reported at values that are meaningful to financial statement users.
","snippet":"Consistent with the objective of a defined contribution plan's financial statements, net assets available for benefits of defined contribution plans should be measured and reported at values that are meaningful to financ…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:06e5aaeb5630658a95d74c7d1c4dd696baf44dd74dc446f9d980e68dce9954f9","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}},{"citation":"962-10-05-6","para":"05-6","html":"
Information that is useful to plan participants includes the amount they would receive currently if they were to withdraw or borrow funds from or transfer funds within the plan.
","snippet":"Information that is useful to plan participants includes the amount they would receive currently if they were to withdraw or borrow funds from or transfer funds within the plan.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:78f453421d438d96119031588fdf7249a01cfdb52057ff85a1f5e1b116383df0","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}},{"citation":"962-10-05-7","para":"05-7","html":"
The primary users of a defined contribution plan's financial statements include all of the following:
  1. a
    Plan sponsor(s)
  2. b
    Plan participants
  3. c
    The following governmental regulators:
    1. 1
      The U.S. Department of Labor
    2. 2
      The Internal Revenue Service (IRS)
    3. 3
      The Securities and Exchange Commission (SEC).
","snippet":"The primary users of a defined contribution plan's financial statements include all of the following:\n(a) Plan sponsor(s)\n(b) Plan participants\n(c) The following governmental regulators:\n(1) The U.S. Department of Labor\n…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:34e17d4b1efd51f55d55989a11e9dedf23de07752d729c4756ced16967811c99","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2c45c7db29f0d946c205a9b4222d1bc3b4372aa2039a2968338a7959a0d717f4","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}},{"block":null,"heading":"The Employee Retirement Income Security Act of 1974","paragraphs":[{"citation":"962-10-05-8","para":"05-8","html":"
Defined contribution 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).
","snippet":"Defined contribution 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 fo…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ffb548129742d6c15b1759f86d8252fdd9901d251f211baf8bc49d8e7ed75529","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}},{"citation":"962-10-05-9","para":"05-9","html":"
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 contribution plan financial statements.
","snippet":"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 contrib…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:2a5d48c120d46ecd0bfc75610accbc1e822a4700492f6030ce51c63f89f99e28","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:a6adbdd61578b3f41c8bd251ccae1f4a3db9b291de51ee688734ae1d231699e6","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48d2c457851ada2060568d934c68ed16ce7ed52d8f6e669d01be594e8db6a3aa","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:48d2c457851ada2060568d934c68ed16ce7ed52d8f6e669d01be594e8db6a3aa","downloaded_from":"2026-09-10T02:23:53.436Z","last_downloaded_at":"2026-09-10T02:23:53.436Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480742","source_sha256":"c010ceeb20518e5e330698aab03b97b9aef9321b838ca6290bc0a7baa73a2189"}}