{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/965/30/#25-recognition","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":"965","topic_title":"Plan Accounting—Health and Welfare Benefit Plans","subtopic":"965-30","subtopic_title":"Plan Benefit Obligations","section":{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":"Benefit Payments","paragraphs":[{"citation":"965-30-25-1","para":"25-1","html":"
A health and welfare plan may process benefit payments directly or it may retain a third-party administrator (for example, an administrative service arrangement). In either case, a plan that is fully or partially self-funded is obligated for the related benefits, as described in this Subtopic.
","snippet":"A health and welfare plan may process benefit payments directly or it may retain a third-party administrator (for example, an administrative service arrangement). In either case, a plan that is fully or partially self-fu…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d9a4a76199c2dfb4dc2095d1b80d50fc9a7b7ccf62ab892b9af19a53cf263226","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:983a3de0dab2e4234713e7d31bd3f6169b95e70437b905d192541add3d5186b2","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}},{"block":null,"heading":"Premiums Due under Insurance Arrangements","paragraphs":[{"citation":"965-30-25-2","para":"25-2","html":"
The benefit obligations shall include any obligation for premiums due but not paid under insurance arrangements.
","snippet":"The benefit obligations shall include any obligation for premiums due but not paid under insurance arrangements.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88c6e4288e75905a0b8f10539fa27f0c365949a0f245b2924241282588d64506","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3b37abdebe4cedbcd04d035d6d22aa8c2c7cd9409d0f941e6c86d9b19d31f5d3","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}},{"block":null,"heading":"Postemployment Benefits","paragraphs":[{"citation":"965-30-25-3","para":"25-3","html":"
Plans that provide postemployment benefits shall recognize a benefit obligation for current participants, based on amounts expected to be paid in subsequent years, if all the following conditions are met:
  1. a
    The participants' rights to receive benefits are attributable to services already rendered.
  2. b
    The participants' benefits vest or accumulate. For example, the supplemental unemployment benefit is 52 weeks' pay if a participant worked 3 years, 78 weeks' pay if a participant worked 5 years, and 104 weeks' pay if a participant worked 7 years. In this situation, the benefits would be considered accumulating. Benefits that increase solely as a function of wage or salary increases are not considered accumulating.
  3. c
    Payment of benefits is probable.
  4. d
    The amount can be reasonably estimated.
","snippet":"Plans that provide postemployment benefits shall recognize a benefit obligation for current participants, based on amounts expected to be paid in subsequent years, if all the following conditions are met:\n(a) The partici…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:de9deafd439c6838d12d6639f064973622696180e6f1f27f2fee061bd89e3dad","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}},{"citation":"965-30-25-4","para":"25-4","html":"
For postemployment benefits that do not meet conditions (a) and (b) in the preceding paragraph, the plan shall recognize a benefit obligation if the event that gives rise to a liability has occurred and the amount can be reasonably estimated. For example, if all participants receive the same medical coverage upon disability regardless of length of service (the benefits do not accumulate) and the benefits do not vest, medical benefits for disabled participants shall be accrued at the date of disability and not over the participants' working lives.
","snippet":"For postemployment benefits that do not meet conditions (a) and (b) in the preceding paragraph, the plan shall recognize a benefit obligation if the event that gives rise to a liability has occurred and the amount can be…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d4ca8635f2de607ca9446932c5ea68e10f3eccc56e7784e1ec18dc605b174a8b","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:6a5e9e98003108d570228ef4d6196edfcd3ace4a5bd65a41c58c1ff1e52d26f4","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}},{"block":null,"heading":"Obligation for Premium Deficit","paragraphs":[{"citation":"965-30-25-5","para":"25-5","html":"
Experience ratings determined by the insurance entity or by estimates (for example, in fully insured experience-rated arrangements) may result in a premium deficit. Premium deficits shall be included in the benefit obligations if both of the following criteria are met:
  1. a
    It is probable that the deficit will be applied against the amounts of future premiums or future experience-rating refunds. This determination shall consider both of the following:
    1. 1
      The extent to which the insurance contract requires payment of such deficits
    2. 2
      The plan's intention, if any, to transfer coverage to another insurance entity.
  2. b
    The amount can be reasonably estimated.
","snippet":"Experience ratings determined by the insurance entity or by estimates (for example, in fully insured experience-rated arrangements) may result in a premium deficit. Premium deficits shall be included in the benefit oblig…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:7440ac5ec478b5f3892c4ffa5038d7b4351e1543f07588da8ec77f2245444f56","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:77683936219de217579b9e495cb279571e0c142a10ba9564f9c532d888a7637b","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bea45e1d3334049ab6e944f0ea02cb6efe617a5939b8418cfa409b94edaca94b","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bea45e1d3334049ab6e944f0ea02cb6efe617a5939b8418cfa409b94edaca94b","downloaded_from":"2026-09-10T02:25:15.288Z","last_downloaded_at":"2026-09-10T02:25:15.288Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480384","source_sha256":"ff8e7f3c15ace48787ea5b9dba9d402d9f5d8b2deb5ac0b2c54d123cb5b9ccfe"}}