# ASC 962-10: Plan Accounting—Defined Contribution Pension Plans — Overall Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/962/10/) 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): 2026-09-10T02:23:49.997Z to 2026-09-10T02:24:03.800Z Record version: sha256:c0e078eb37d931dcb2b5dbec9f1a20a9f97a8d2f7235d3cf7188687b8e5ef0d1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 962-10: Plan Accounting—Defined Contribution Pension Plans — Overall ### Machine-generated study aids ```json { "summary": "ASC 962-10 is the Overall subtopic for financial reporting **by** a defined contribution pension plan itself (not by the sponsoring employer, which follows Topic 715). Its objective is to provide information useful in assessing the plan's present and future ability to pay benefits when due; because plan net assets available for benefits equal the sum of participants' individual account balances, those net assets are measured and reported at values meaningful to users—principally the amount a participant could currently withdraw, borrow, or transfer. It applies to all employee benefit plans providing benefits based on amounts contributed to an employee's individual account, and not to defined benefit plans (Topic 960) or health and welfare plans (Topic 965).", "key_points": [ "Plan Accounting Topics govern reporting by the plan, while Topic 715 and the Compensation Topics govern reporting by the employer (962-10-05-1).", "The primary objective of a defined contribution plan's financial statements is to provide information useful in assessing the plan's present and future ability to pay benefits when due; net assets available for benefits equal the sum of participants' individual account balances (962-10-10-1).", "Net assets available for benefits should be measured and reported at values meaningful to financial statement users (962-10-05-5), including the amount participants would receive if they currently withdrew, borrowed, or transferred funds (962-10-05-6).", "Participants are key users because they bear the investment risk and plan transactions directly affect their benefits, unlike in defined benefit plans (962-10-05-4).", "Primary users are the plan sponsor(s), plan participants, and the DOL, IRS, and SEC (962-10-05-7).", "Scope: all entities that are employee benefit plans providing benefits based on amounts contributed to an employee's individual account (962-10-15-2); excluded are defined benefit pension plans (Topic 960) and health and welfare plans that are not also defined contribution plans (962-10-15-3).", "ERISA reporting requirements are generally not codified but must still be considered by preparers of defined contribution plan financial statements (962-10-05-8 through 05-9)." ], "categories": [ "Industry-specific", "Compensation and benefits", "Financial statement presentation", "Subsequent measurement" ], "audience_level": "intermediate", "student_note": "The classic trap is confusing plan-level reporting (Topics 960/962/965) with employer-level pension accounting (Topic 715)—962 tells the plan how to report its own net assets, not how the sponsor records pension cost. Remember that in a DC plan there is no benefit obligation to measure: net assets available for benefits simply equal the sum of participants' account balances.", "related_topics": [ "960", "965", "715", "962-40", "962-205", "820" ], "key_concepts": [ "defined contribution pension plan", "plan financial statements", "net assets available for benefits", "participant individual account balances", "ability to pay benefits when due", "erisa reporting", "plan versus employer accounting" ] } ``` Source downloaded (UTC): 2026-09-10T02:23:49.997Z to 2026-09-10T02:23:49.997Z Record version: sha256:6cd4d41a0b0f2fb3b7da32177b1f069ca49c371f6924153b297e8fd1bb8e483b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 962-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/962/10/#00-status) SEC content: no ##### [962-10-00-1](https://asc.understandingaccounting.org/asc/962/10/#962-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:49.997Z to 2026-09-10T02:23:49.997Z Record version: sha256:4feda96c5179e264437669f2ff16dc55ed5beec5c284f1deeefd8e2699b7e181 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 (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution PlanAmendedAccounting Standards Update No. 2014-0603/14/2014
Sponsor (3rd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
962-10-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
962-10-05-7AmendedAccounting Standards Update No. 2014-0603/14/2014
962-10-10-1AmendedAccounting Standards Update No. 2014-0603/14/2014
962-10-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
962-10-65-1AddedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
962-10-65-2AddedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
962-10-65-3AddedAccounting Standards Update No. 2015-12 (Part III)07/31/2015
962-10-65-4AddedAccounting Standards Update No. 2017-0602/27/2017
Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:48d2c457851ada2060568d934c68ed16ce7ed52d8f6e669d01be594e8db6a3aa Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 962-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/962/10/#05-overview-and-background) SEC content: no ##### [962-10-05-1](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:4b3e07c489c46a4fcebfca26cc6640e07c609a283b27b88466e2e6a1f6d30687 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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.") to its employees. ##### [962-10-05-2](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:bbdae34674be856cbf6468f9c853f6ef400043062030e1a50dce5ed8524af53f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [962-10-05-3](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:09339ec1e0ff84693866548a23253fa1e639c6bbc498d42b5e2eaa15cf69ceba Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides guidance on the accounting and reporting for defined contribution pension plans. ##### [962-10-05-4](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:470c7da0f3b7b8bd59e1c378ef65fced3c4057d3cdfc842bbc4d5c68fe49d854 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information relevant to the primary users of [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account.") 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. ##### [962-10-05-5](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:06e5aaeb5630658a95d74c7d1c4dd696baf44dd74dc446f9d980e68dce9954f9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [962-10-05-6](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:78f453421d438d96119031588fdf7249a01cfdb52057ff85a1f5e1b116383df0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [962-10-05-7](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:34e17d4b1efd51f55d55989a11e9dedf23de07752d729c4756ced16967811c99 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The primary users of a defined contribution plan's financial statements include all of the following: 1. a Plan [sponsor(s)](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.") 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). #### The Employee Retirement Income Security Act of 1974 ##### [962-10-05-8](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:ffb548129742d6c15b1759f86d8252fdd9901d251f211baf8bc49d8e7ed75529 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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). ##### [962-10-05-9](https://asc.understandingaccounting.org/asc/962/10/#962-10-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:53.436Z to 2026-09-10T02:23:53.436Z Record version: sha256:2a5d48c120d46ecd0bfc75610accbc1e822a4700492f6030ce51c63f89f99e28 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 contribution plan financial statements. Source downloaded (UTC): 2026-09-10T02:23:55.285Z to 2026-09-10T02:23:55.285Z Record version: sha256:ecab6664c927137f625c493094e5c07d0f319f9e419cf83c7d6d10a5eba56dd4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 962-10-10: 10 Objectives [Read section](https://asc.understandingaccounting.org/asc/962/10/#10-objectives) SEC content: no ##### [962-10-10-1](https://asc.understandingaccounting.org/asc/962/10/#962-10-10-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:55.285Z to 2026-09-10T02:23:55.285Z Record version: sha256:604412dc6cf81aa4550468cf8e8171543541035739a903364a2c0b135a08ce1c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The primary objective of a defined contribution plan's financial statements is to provide information that is useful in assessing the plan's present and future ability to pay [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.") when they are due. In a [defined contribution plan](https://asc.understandingaccounting.org/glossary/d/#defined-contribution-plan "A plan that provides an individual account for each participant and provides benefits that are based on all of the following: amounts contributed to the participant's account by the employer or employee; investment experience; and any forfeitures allocated to the account, less any administrative expenses charged to the plan. Defined contribution health and welfare plans—Defined contribution health and welfare plans maintain an individual account for each plan participant. They have terms that specify the means of determining the contributions to participants' accounts, rather than the amount of benefits the participants are to receive. The benefits a plan participant will receive are limited to the amount contributed to the participant's account, investment experience, expenses, and any forfeitures allocated to the participant's account. These plans also include flexible spending arrangements. Defined contribution postretirement plan—A plan that provides postretirement benefits in return for services rendered, provides an individual account for each plan participant, and specifies how contributions to the individual's account are to be determined rather than specifies the amount of benefits the individual is to receive. Under a defined contribution postretirement plan, the benefits a plan participant will receive depend solely on the amount contributed to the plan participant's account, the returns earned on investments of those contributions, and the forfeitures of other plan participants' benefits that may be allocated to that plan participant's account."), the plan's net assets available to pay benefits equal the sum of participants' individual account balances. Accordingly, benefits that can be paid by the plan when they are due relate to the value of the assets that may currently be made available to the individual participants. Source downloaded (UTC): 2026-09-10T02:23:57.157Z to 2026-09-10T02:23:57.157Z Record version: sha256:caaa3abc0a01a349c4e920ec6637691aca8a612e56a41949344d42d274b10c92 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 962-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/962/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [962-10-15-1](https://asc.understandingaccounting.org/asc/962/10/#962-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:57.157Z to 2026-09-10T02:23:57.157Z Record version: sha256:0b47c8cb01f2ec20a2e9c8501e5e2c7c13bbff0b8966ee0e04e543abeb71ee04 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Entities ##### [962-10-15-2](https://asc.understandingaccounting.org/asc/962/10/#962-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:57.157Z to 2026-09-10T02:23:57.157Z Record version: sha256:ba03259add145c07326b60199d8f21def6a083ac244c83bce49634101b1d8e8e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all entities that are employee benefit plans that provide [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.") based on amounts contributed to an employee's individual account. ##### [962-10-15-3](https://asc.understandingaccounting.org/asc/962/10/#962-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:23:57.157Z to 2026-09-10T02:23:57.157Z Record version: sha256:742bf074e5efd64deb798982b8a8f243b1e90badd5310d6bd512a692635d1c09 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 Defined benefit pension plans (see Topic 960) 2. b Health and welfare benefit plans that are not also defined contribution plans (see Topic 965). Source downloaded (UTC): 2026-09-10T02:24:03.800Z to 2026-09-10T02:24:03.800Z Record version: sha256:f77eab09fefbce7ba995ef9c00caa63253ca07a7e8cf027bdc57d7994d6e9a34 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 962-10-65: 65 Transition and Open Effective Date Information [Read section](https://asc.understandingaccounting.org/asc/962/10/#65-transition-and-open-effective-date-information) SEC content: no ##### [962-10-65-1](https://asc.understandingaccounting.org/asc/962/10/#962-10-65-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:03.800Z to 2026-09-10T02:24:03.800Z Record version: sha256:188aa86fe1678b5c14cee624fe9e4d2b1cbbf149608f3c5d3b850eef28e8e437 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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_. ##### [962-10-65-2](https://asc.understandingaccounting.org/asc/962/10/#962-10-65-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:03.800Z to 2026-09-10T02:24:03.800Z Record version: sha256:40d4629ab6e5833f6cf7503e1c856af8e7cc22686c5eeff22cbe0d59680cea63 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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._ ##### [962-10-65-3](https://asc.understandingaccounting.org/asc/962/10/#962-10-65-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:03.800Z to 2026-09-10T02:24:03.800Z Record version: sha256:cc7612e35307a024fd8b63724f0a27d286ada58ff0e7e147df824d6aa009e49d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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_. ##### [962-10-65-4](https://asc.understandingaccounting.org/asc/962/10/#962-10-65-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:03.800Z to 2026-09-10T02:24:03.800Z Record version: sha256:2548294c21d1ec4315fd4512d44a63926b69891b2950e55c6785707e9f3be5e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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_.