# ASC 965-20: Plan Accounting—Health and Welfare Benefit Plans — Net Assets Available for Plan Benefits Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/965/20/) 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): 2026-09-10T02:24:33.713Z to 2026-09-10T02:24:58.307Z Record version: sha256:640d1ec97b3f1ea77783c174ba30e655b5415fda78c9f2c50c8df6a24677ee32 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20: Plan Accounting—Health and Welfare Benefit Plans — Net Assets Available for Plan Benefits ### Machine-generated study aids ```json { "summary": "ASC 965-20 governs the \"net assets available for benefits\" component of health and welfare benefit plan financial statements. It requires the plan to accrue non-benefit liabilities (e.g., securities purchased, income taxes payable, third-party administrator fees), record noncash contributions at fair value less costs to sell if significant, and present a statement of net assets available for benefits showing total assets, total liabilities, and net assets available for benefits. The companion statement of changes must show, in sufficient detail, the significant changes for the year, including contributions by source, net appreciation/depreciation in fair value, investment income, claims payments, premiums, and administrative expenses.", "key_points": [ "Liabilities other than benefit obligations—amounts owed for securities purchased, income taxes payable by the plan, and other expenses such as third-party administrator fees—shall be deducted to arrive at net assets available for benefits (965-20-25-1).", "A noncash contribution shall be recorded at fair value less costs to sell, if significant, at the date of the contribution (965-20-30-1), and its nature shall be described parenthetically or in a note (965-20-50-1).", "The statement of net assets available for benefits must present total assets, total liabilities, and net assets available for benefits (965-20-45-1); former subparagraph (c) was superseded by ASU 2015-12 (Part I).", "The statement of changes in net assets available for benefits must show significant changes, including employer contributions segregated between cash and noncash, participant contributions (including those collected and remitted by the sponsor), contributions from other sources, net appreciation/depreciation in fair value, investment income, income taxes, claims payments, insurance premiums, operating and administrative expenses, and other significant changes such as interplan transfers (965-20-45-3).", "Net appreciation or depreciation includes realized gains and losses on investments both purchased and sold during the period plus unrealized appreciation or depreciation on investments held at year-end (965-20-45-3(e)).", "Payments of claims and premiums relating to insurance contracts that are excluded from plan assets are not reported as changes in net assets (965-20-45-3(h)-(i)).", "The statement of changes shall reflect income credited to participants and net appreciation or depreciation in fair value of only those investment contracts that are not deemed to be fully benefit-responsive (965-20-45-5)." ], "categories": [ "Industry-specific", "Financial statement presentation", "Presentation", "Disclosure" ], "audience_level": "intermediate", "student_note": "Plan financial statements are unusual: the \"balance sheet\" is a statement of net assets available for benefits, and benefit obligations are reported separately (ASC 965-30/965-40), not as liabilities here. A common mistake is netting or omitting non-benefit liabilities, or treating claims paid by an insurer under contracts excluded from plan assets as plan activity.", "related_topics": [ "965-10", "965-30", "965-40", "962-20", "960-20", "820" ], "key_concepts": [ "net assets available for benefits", "noncash contributions", "fully benefit-responsive investment contracts", "net appreciation or depreciation in fair value", "plan liabilities", "statement of changes in net assets", "employer and participant contributions", "health and welfare benefit plans" ] } ``` Source downloaded (UTC): 2026-09-10T02:24:33.713Z to 2026-09-10T02:24:33.713Z Record version: sha256:54ac6e77a464724d8df4cba38a65b166f2d4733deb0f4b539a63fe8a243bfc7e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/965/20/#00-status) SEC content: no ##### [965-20-00-1](https://asc.understandingaccounting.org/asc/965/20/#965-20-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:33.713Z to 2026-09-10T02:24:33.713Z Record version: sha256:06ae0640a52d0b3e3c49ec15dfc4ef3c4036c3cc769be95c84dae4902731bd41 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
Fair Value (2nd def.)SupersededAccounting Standards Update No. 2012-0410/01/2012
Fair Value (3rd def.)AddedAccounting Standards Update No. 2012-0410/01/2012
Fully Benefit-Responsive Investment ContractSupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
Plan Assets (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Plan Assets (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
965-20-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-20-30-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-20-45-1AmendedAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-20-45-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-20-45-2SupersededAccounting Standards Update No. 2015-12 (Part I)07/31/2015
965-20-45-3AmendedAccounting Standards Update No. 2015-12 (Part II)07/31/2015
965-20-45-3AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:24:35.865Z to 2026-09-10T02:24:35.865Z Record version: sha256:680fe7a10eef9a3e6313beae3c43862efb26c1531901d52565fb57a7fe0d4de7 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/965/20/#05-overview-and-background) SEC content: no ##### [965-20-05-1](https://asc.understandingaccounting.org/asc/965/20/#965-20-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:35.865Z to 2026-09-10T02:24:35.865Z Record version: sha256:231ccca8242e8850c2f9ec60577ee5aa335e5e2b4339c8006e4d32a7c7ee1af1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on net assets available for benefits for [health and welfare benefit plans](https://asc.understandingaccounting.org/glossary/h/#health-and-welfare-benefit-plans "Health and welfare benefit plans include plans that provide the following: Any of the following benefits: Medical, dental, visual, psychiatric, or long-term health care Life insurance (offered separately from a pension plan) Certain severance benefits Accidental death or dismemberment benefits. Benefits for unemployment, disability, vacations, or holidays Other benefits such as apprenticeships, tuition assistance, day care, dependent care, housing subsidies, or legal services."). Source downloaded (UTC): 2026-09-10T02:24:39.687Z to 2026-09-10T02:24:39.687Z Record version: sha256:9f31a8b579b1eded55fc515c3544cd5cf6d0203949c94f882a13e8c8655e35ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/965/20/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [965-20-15-1](https://asc.understandingaccounting.org/asc/965/20/#965-20-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:39.687Z to 2026-09-10T02:24:39.687Z Record version: sha256:76a687d6da42d5c8586994d7a2d019471373dc55669127f6848fab2a728838a3 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 965-10-15. Source downloaded (UTC): 2026-09-10T02:24:46.927Z to 2026-09-10T02:24:46.927Z Record version: sha256:2fca5a33a2e5e92272ac0d468ddcf39aab7947f196903175f8c0b62d66b9eeb0 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/965/20/#25-recognition) SEC content: no ##### [965-20-25-1](https://asc.understandingaccounting.org/asc/965/20/#965-20-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:46.927Z to 2026-09-10T02:24:46.927Z Record version: sha256:526ed537e0dcd817738d418edda5b4f2b3654ffcf6b97abbff572b4abce4103a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A plan may have liabilities (other than 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.")) that should be accrued. Such liabilities may be for amounts owed for securities purchased, income taxes payable by the plan, or other expenses (for example, third-party administrator fees). These liabilities shall be deducted to arrive at net assets available for benefits. Source downloaded (UTC): 2026-09-10T02:24:51.011Z to 2026-09-10T02:24:51.011Z Record version: sha256:7b6aead235995522ccc608a1825837ff8c56aeb6325f09b04e600368fcd67cc8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/965/20/#30-initial-measurement) SEC content: no #### Noncash Contribution ##### [965-20-30-1](https://asc.understandingaccounting.org/asc/965/20/#965-20-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:51.011Z to 2026-09-10T02:24:51.011Z Record version: sha256:b4944003ca81690c692a41082a3ac73a140fc0c8aaba5614257c0283289d1a21 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A noncash contribution shall be recorded at [fair value](https://asc.understandingaccounting.org/glossary/f/#fair-value "The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.") less costs to sell, if significant, at the date of the contribution. Source downloaded (UTC): 2026-09-10T02:24:54.976Z to 2026-09-10T02:24:54.976Z Record version: sha256:4f7c13ff60e4598796aa58ed5c259c284eee684c8579c0aaf452199533c20c51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/965/20/#45-other-presentation-matters) SEC content: no #### Statement of Net Assets Available for Benefits ##### [965-20-45-1](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:54.976Z to 2026-09-10T02:24:54.976Z Record version: sha256:0a93a016425e7b0a07c977fd04b8ecb7db670e62e13ceb0d281ce94b294d579d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of net assets available for benefits of the plan shall present amounts for the following: 1. a Total assets 2. b Total liabilities 3. c [Subparagraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). 4. d Net assets available for benefits. ##### [965-20-45-2](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:54.976Z to 2026-09-10T02:24:54.976Z Record version: sha256:e37e208ff26f9817616f3fbe9808bc6de05ed54195edcb4d1f6115f496d9036d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2015-12](https://asc.understandingaccounting.org/updates/asu-2015-12/). (Part I). #### Statement of Changes in Net Assets Available for Benefits ##### [965-20-45-3](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:54.976Z to 2026-09-10T02:24:54.976Z Record version: sha256:a5dbdfedf88ad21959807db1973b5271e1bd2bb28ab409387d9792ed204ca319 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of changes in net assets available for benefits shall be presented in enough detail to identify the significant changes during the year, including, as applicable, the following: 1. a Contributions from employers, segregated between cash and noncash contributions 2. b The nature of noncash contributions described either parenthetically or in a note 3. c Contributions from participants, including those collected and remitted by the sponsor 4. d Contributions from other identified sources (for example, state subsidies or federal grants) 5. e The net appreciation or 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. 6. f Investment income, excluding the net appreciation or depreciation 7. g Income taxes paid or payable, if applicable 8. h Payments of claims, excluding payments made by an insurance entity pursuant to contracts that are excluded from [plan assets](https://asc.understandingaccounting.org/glossary/p/#plan-assets "Assets—usually stocks, bonds, and other investments (except certain insurance contracts as noted in paragraph 715-60-35-109)—that have been segregated and restricted (usually in a trust) to be used for a health and welfare plan (which can include active, terminated, and retired employees or their dependents or beneficiaries). The amount of plan assets includes amounts contributed by the employer, and by plan participants for a contributory plan, and amounts earned from investing the contributions, less benefits, income taxes, and other expenses incurred. 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. Securities of the employer held by the plan are includable in plan assets provided they are transferable. 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 the employer may intend that those assets be used to provide health and welfare benefits, which may include postretirement benefits. Those assets shall be accounted for in the same manner as other employer assets of a similar nature and with similar restrictions. If a plan has liabilities other than for benefits, those nonbenefit obligations are considered as reductions of plan assets. Amounts accrued by the employer but not yet paid to the plan are not plan assets. If a trust arrangement explicitly provides that segregated assets are available to satisfy claims of creditors in bankruptcy, such a provision would effectively permit those assets to be used for other purposes at the discretion of the employer. It is not necessary to determine that a trust is bankruptcy-proof for the assets of the trust to qualify as plan assets. However, assets held in a trust that explicitly provides that such assets are available to the general creditors of the employer in the event of the employer's bankruptcy would not qualify as plan assets.") 9. i Payments of premiums to insurance entities to purchase contracts that are excluded from plan assets 10. j Operating and administrative expenses 11. k Other changes (such as transfers of assets to or from other plans), if significant. ##### [965-20-45-4](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:54.976Z to 2026-09-10T02:24:54.976Z Record version: sha256:2156cc2b478e6f81e38af9eec2dbff81d87c4265f60ae6ae3abe58c72cfd717e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The list of minimum disclosures is not intended to define the degree of detail or the manner of presenting the information, and subclassifications or additional classifications may be useful. ##### [965-20-45-5](https://asc.understandingaccounting.org/asc/965/20/#965-20-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:54.976Z to 2026-09-10T02:24:54.976Z Record version: sha256:c43ae09a9f8729b101036e03e88e0604978a84aa34ebabaa6e89b5916b731f5e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The statement of changes in net assets available for benefits shall be prepared on a basis that reflects income credited to participants in the plan and net appreciation or depreciation in the fair value of only those investment contracts that are not deemed to be fully benefit responsive. Source downloaded (UTC): 2026-09-10T02:24:58.307Z to 2026-09-10T02:24:58.307Z Record version: sha256:3f0ce4ac8c7b770212a9839df264363523fadcd6e52b49f325fc87a05f315c6a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-20-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/965/20/#50-disclosure) SEC content: no ##### [965-20-50-1](https://asc.understandingaccounting.org/asc/965/20/#965-20-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:58.307Z to 2026-09-10T02:24:58.307Z Record version: sha256:f27689e403400bb15ecfef9b7185c4aff3cfd43ddca6918207b646c716ba7f0f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature of noncash contributions shall be described either parenthetically or in a note.