The following table identifies the changes made to this Subtopic.
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:
- a
Plan Accounting—Defined Benefit Pension Plans, Topic
960 - b
Plan Accounting—Defined Contribution Pension Plans, (this Topic)
- 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. The Plan Accounting—Defined Contribution Pension Plans Topic includes the following Subtopics:
- a
Overall
- b
Terminating Plans
- c
Presentation of Financial Statements
- d
Notes to Financial Statements
- e
Receivables
- f
Investments—Other.
The Overall Subtopic provides guidance on the accounting and reporting for defined contribution pension plans.
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.
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.
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).
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.
The Subtopics within the Plan Accounting—Defined Contribution 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 Contribution Pension Plans Subtopics.
The guidance in this Topic applies to all entities that are employee benefit plans that provide
benefits based on amounts contributed to an employee's individual account.
The guidance in this Topic does not apply to the following entities:
- a
Defined benefit pension plans (see Topic
960)
- b
Health and welfare benefit plans that are not also defined contribution plans (see Topic
965).
Paragraph superseded on 07/05/2017 after the end of the transition period stated in Accounting Standards Update No. 2015-12 (Part I), Plan Accounting (Topics 962 and 965): Fully Benefit-Responsive Investment Contracts.
Paragraph superseded on 07/05/2017 after the end of the transition period stated in Accounting Standards Update No. 2015-12 (Part II), Plan Accounting (Topics 960, 962, and 965): Plan Investment Disclosures.
Paragraph superseded on 07/05/2017 after the end of the transition period stated in Accounting Standards Update No. 2015-12 (Part III), Plan Accounting (Topics 960, 962, and 965): Measurement Date Practical Expedient.
Paragraph superseded on 07/20/2020 after the end of the transition period stated in Accounting Standards Update No. 2017-06, Plan Accounting (Topics 960, 962, and 965): Employee Benefit Plan Master Trust Reporting.