{"schema_version":2,"canonical_url":"https://asc.understandingaccounting.org/asc/965/40/","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.","number":"965-40","topic":"965","title":"Terminating Plans","area":"Industry","paragraphs":9,"summary":"ASC 965-40 governs accounting and reporting by health and welfare benefit plans that are terminating. Once liquidation of the plan is deemed imminent under paragraph 205-30-25-2, the plan must prepare its financial statements using the liquidation basis of accounting under Subtopic 205-30, including for the year-end statements if imminence is determined before the plan year ends. Benefit obligations are measured on the liquidation basis rather than as actuarial present values, and the termination or wasting-trust circumstances must be disclosed in all subsequent plan financial statements.","concepts":["terminating plan","liquidation basis of accounting","liquidation imminent","benefit obligations","wasting trust","vesting of benefits","health and welfare benefit plan"],"categories":["Subsequent measurement","Disclosure","Compensation and benefits","Industry-specific"],"level":"intermediate","topic_title":"Plan Accounting—Health and Welfare Benefit Plans","sections":[{"number":"00","label":"00 Status","anchor":"00-status","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"965-40-00-1","para":"00-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">The following table identifies the changes made to this Subtopic.</div><div class=\"norm-text\"><table class=\"asc-table\" id=\"SL29650676-162153\"><tr><td class=\"entry\"><strong class=\"ph b\">Paragraph</strong></td><td class=\"entry\"><strong class=\"ph b\">Action</strong></td><td class=\"entry\"><strong class=\"ph b\">Accounting Standards Update</strong></td><td class=\"entry\"><strong class=\"ph b\">Date</strong></td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#benefits\" class=\"term\" title=\"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.\"><span>Benefits</span></a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2016-19/\" class=\"xref\">Accounting Standards Update No. 2016-19</a></td><td class=\"entry\">12/14/2016</td></tr><tr><td class=\"entry\"><a href=\"/glossary/b/#benefits\" class=\"term\" title=\"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.\"><span>Benefits</span></a> (3rd def.)</td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><a href=\"/glossary/l/#liquidation\" class=\"term\" title=\"The process by which an entity converts its assets to cash or other assets and settles its obligations with creditors in anticipation of the entity ceasing all activities. Upon cessation of the entity's activities, any remaining cash or other assets are distributed to the entity's investors or other claimants (albeit sometimes indirectly). Liquidation may be compulsory or voluntary. Dissolution of an entity as a result of that entity being acquired by another entity or merged into another entity in its entirety and with the expectation of continuing its business does not qualify as liquidation.\"><span>Liquidation</span></a></td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/glossary/t/#terminating-plan\" class=\"term\" title=\"All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced.\"><span>Terminating Plan</span></a> (1st def.)</td><td class=\"entry\">Added</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><strong class=\"ph b\">Terminating Plan</strong> (2nd def.)</td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td><td class=\"entry\"></td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-05-1\" class=\"xref\">965-40-05-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-25-1\" class=\"xref\">965-40-25-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-25-2\" class=\"xref\">965-40-25-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-35-1\" class=\"xref\">965-40-35-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-35-1\" class=\"xref\">965-40-35-1</a></td><td class=\"entry\">Superseded</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-35-1\" class=\"xref\">965-40-35-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2012-04/\" class=\"xref\">Accounting Standards Update No. 2012-04</a></td><td class=\"entry\">10/01/2012</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-35-2\" class=\"xref\">965-40-35-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-35-2\" class=\"xref\">965-40-35-2</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Accounting Standards Update No. 2013-07</a></td><td class=\"entry\">04/22/2013</td></tr><tr><td class=\"entry\"><a href=\"/asc/965/40/#965-40-50-1\" class=\"xref\">965-40-50-1</a></td><td class=\"entry\">Amended</td><td class=\"entry\"><a href=\"/updates/asu-2014-06/\" class=\"xref\">Accounting Standards Update No. 2014-06</a></td><td class=\"entry\">03/14/2014</td></tr></table></div></div>","snippet":"The following table identifies the changes made to this Subtopic.\nParagraph | Action | Accounting Standards Update | Date |\n| | | |\nBenefits | Amended | Accounting Standards Update No. 2016-19 | 12/14/2016 |\nBenefits (3r…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c196f74f9d79285d5c65e868993d5d9a95caedee103f31dba1e2efc1837558c2","downloaded_from":"2026-09-10T02:25:30.319Z","last_downloaded_at":"2026-09-10T02:25:30.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480233","source_sha256":"3216839e158e0519ae8881df5d9eab76fcb905646f51732f813a09d1994ce6fb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d3ca4a67ac36f2d0528fd89c38c9c4679f630091f45ad39446ab6009aabe9952","downloaded_from":"2026-09-10T02:25:30.319Z","last_downloaded_at":"2026-09-10T02:25:30.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480233","source_sha256":"3216839e158e0519ae8881df5d9eab76fcb905646f51732f813a09d1994ce6fb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ae4708402c280ea8b0a93b5d2813ca424edd51639ee6344651364a4d798b484f","downloaded_from":"2026-09-10T02:25:30.319Z","last_downloaded_at":"2026-09-10T02:25:30.319Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480233","source_sha256":"3216839e158e0519ae8881df5d9eab76fcb905646f51732f813a09d1994ce6fb"}},{"number":"05","label":"05 Overview and Background","anchor":"05-overview-and-background","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"965-40-05-1","para":"05-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic provides guidance for <a href=\"/glossary/h/#health-and-welfare-benefit-plans\" class=\"term\" title=\"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.\"><span>health and welfare benefit plans</span></a> that are <a href=\"/glossary/t/#terminating-plan\" class=\"term\" title=\"All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced.\"><span>terminating plans</span></a>.</div></div>","snippet":"This Subtopic provides guidance for health and welfare benefit plans that are terminating plans.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:aaff5dbbaa9b737c00506a3cd89efb070a4eeed9bdcc808c57a1795259bec49b","downloaded_from":"2026-09-10T02:25:34.007Z","last_downloaded_at":"2026-09-10T02:25:34.007Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480202","source_sha256":"499350c0ea0750a5e73c28925cb6bb080755e2cb78835ab1afeebf4ec590bd61"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:8c06333ee3947d0ca27080d14283e2224bac126e8e62ab1795f9d0e8225bab2f","downloaded_from":"2026-09-10T02:25:34.007Z","last_downloaded_at":"2026-09-10T02:25:34.007Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480202","source_sha256":"499350c0ea0750a5e73c28925cb6bb080755e2cb78835ab1afeebf4ec590bd61"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ce0c597618d902a794469d0d324c2fd3ecdb4a01844dbeeb5da037a40a17e2ce","downloaded_from":"2026-09-10T02:25:34.007Z","last_downloaded_at":"2026-09-10T02:25:34.007Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480202","source_sha256":"499350c0ea0750a5e73c28925cb6bb080755e2cb78835ab1afeebf4ec590bd61"}},{"number":"15","label":"15 Scope and Scope Exceptions","anchor":"15-scope-and-scope-exceptions","is_sec":false,"groups":[{"block":null,"heading":"Overall Guidance","paragraphs":[{"citation":"965-40-15-1","para":"15-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section <a altsource=\"GUID-F76BAC6A-F007-47F7-B1AC-06A654CF8A37.ditamap\" class=\"ditamap\">965-10-15</a>.</div></div>","snippet":"This Subtopic follows the same Scope and Scope Exceptions as outlined in the Overall Subtopic, see Section 965-10-15.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f44da2e3049cb1f82d7add5b7a76b7b1a04d3e9373d77077906ba0a9ea7e9d66","downloaded_from":"2026-09-10T02:25:36.287Z","last_downloaded_at":"2026-09-10T02:25:36.287Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481121","source_sha256":"f91a0a5207c90bb1026b9d72be5217c6ac1f83104a3fda8026e043b034bd76cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:4a98a6cad29945969bffa1274a8b3251df353e05cf145eb2641579d21367c7bf","downloaded_from":"2026-09-10T02:25:36.287Z","last_downloaded_at":"2026-09-10T02:25:36.287Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481121","source_sha256":"f91a0a5207c90bb1026b9d72be5217c6ac1f83104a3fda8026e043b034bd76cb"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0df116d9561305d1ed32ea2f8b719ca18fdc4ea674b963f6cfccbbf04de0061c","downloaded_from":"2026-09-10T02:25:36.287Z","last_downloaded_at":"2026-09-10T02:25:36.287Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481121","source_sha256":"f91a0a5207c90bb1026b9d72be5217c6ac1f83104a3fda8026e043b034bd76cb"}},{"number":"25","label":"25 Recognition","anchor":"25-recognition","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"965-40-25-1","para":"25-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2442E105-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">If the <a href=\"/glossary/l/#liquidation\" class=\"term\" title=\"The process by which an entity converts its assets to cash or other assets and settles its obligations with creditors in anticipation of the entity ceasing all activities. Upon cessation of the entity's activities, any remaining cash or other assets are distributed to the entity's investors or other claimants (albeit sometimes indirectly). Liquidation may be compulsory or voluntary. Dissolution of an entity as a result of that entity being acquired by another entity or merged into another entity in its entirety and with the expectation of continuing its business does not qualify as liquidation.\"><span>liquidation</span></a> of a plan is deemed to be imminent (as defined in paragraph <a href=\"/asc/205/30/#205-30-25-2\" class=\"xref\">205-30-25-2</a>) before the end of the plan year, the plan's year-end financial statements shall be prepared using the liquidation basis of accounting in accordance with Subtopic <a altsource=\"GUID-F0CE4D19-6B2D-4FC1-8D41-8831E94834AC.ditamap\" class=\"ditamap\">205-30</a>. </span></span></div></div>","snippet":"If the liquidation of a plan is deemed to be imminent (as defined in paragraph 205-30-25-2) before the end of the plan year, the plan's year-end financial statements shall be prepared using the liquidation basis of accou…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:ceb7b1841a4bad7f19d51688d6a8224942b08b21cf2a7340c04a46124f5a84e2","downloaded_from":"2026-09-10T02:25:42.326Z","last_downloaded_at":"2026-09-10T02:25:42.326Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481061","source_sha256":"148f5fa63bd43b7cdea06c0e5ad3a8da2cc3a91a5982622c3146a0cf69eb6944"}},{"citation":"965-40-25-2","para":"25-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_2442E1F2-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">Plan financial statements for periods ending after the determination that liquidation is imminent are prepared using the liquidation basis of accounting. </span></span></div></div>","snippet":"Plan financial statements for periods ending after the determination that liquidation is imminent are prepared using the liquidation basis of accounting.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:3915ccdbf614809e843a8863037c1fc8d1826eafdccad038f3f74aa8c7767bdf","downloaded_from":"2026-09-10T02:25:42.326Z","last_downloaded_at":"2026-09-10T02:25:42.326Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481061","source_sha256":"148f5fa63bd43b7cdea06c0e5ad3a8da2cc3a91a5982622c3146a0cf69eb6944"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:414719fe81d013154eb7941286bb3934525570e45d65f9779c0b79ac791e4896","downloaded_from":"2026-09-10T02:25:42.326Z","last_downloaded_at":"2026-09-10T02:25:42.326Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481061","source_sha256":"148f5fa63bd43b7cdea06c0e5ad3a8da2cc3a91a5982622c3146a0cf69eb6944"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:19cbf8515c367ab478aec682ec8897de6d221654ee3254474b9aa16a19fa1722","downloaded_from":"2026-09-10T02:25:42.326Z","last_downloaded_at":"2026-09-10T02:25:42.326Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481061","source_sha256":"148f5fa63bd43b7cdea06c0e5ad3a8da2cc3a91a5982622c3146a0cf69eb6944"}},{"number":"30","label":"30 Initial Measurement","anchor":"30-initial-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"965-40-30-1","para":"30-1","html":"<div class=\"asc-body\"><div class=\"norm-text\">[Section not used]</div></div>","snippet":"[Section not used]","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b3fdcf86d9b8244ddbc3288590c0cb3e5bb22d24064155fe44966a221087fe7c","downloaded_from":"2026-09-10T02:25:45.653Z","last_downloaded_at":"2026-09-10T02:25:45.653Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481031","source_sha256":"ba18f1125a4127cc0044ba2b61b78fcf4a0de59f42c22c6f61bc8e0c77840c49"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:948e6e527d7ea3859f50a7e431c5013def27b0f99a905fd520a18e7ff69fb626","downloaded_from":"2026-09-10T02:25:45.653Z","last_downloaded_at":"2026-09-10T02:25:45.653Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481031","source_sha256":"ba18f1125a4127cc0044ba2b61b78fcf4a0de59f42c22c6f61bc8e0c77840c49"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d835f19fb5bf400a7335614d75037190ca87628407332d9075c1cac71979f1de","downloaded_from":"2026-09-10T02:25:45.653Z","last_downloaded_at":"2026-09-10T02:25:45.653Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481031","source_sha256":"ba18f1125a4127cc0044ba2b61b78fcf4a0de59f42c22c6f61bc8e0c77840c49"}},{"number":"35","label":"35 Subsequent Measurement","anchor":"35-subsequent-measurement","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"965-40-35-1","para":"35-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><a href=\"/updates/asu-2013-07/\" class=\"xref\">Paragraph superseded by Accounting Standards Update No. 2013-07</a>.</div></div>","snippet":"Paragraph superseded by Accounting Standards Update No. 2013-07.","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:eebe51639b000584663236ed56808e9c657acd0f9cddbfbcccdcbb6a4ce03764","downloaded_from":"2026-09-10T02:25:47.719Z","last_downloaded_at":"2026-09-10T02:25:47.719Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481000","source_sha256":"c54408312075bc3338d6c0f2063b7706e838f25560a9ef74d4f995c4b70a770f"}},{"citation":"965-40-35-2","para":"35-2","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_24612882-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">For <a href=\"/glossary/t/#terminating-plan\" class=\"term\" title=\"All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced.\"><span>terminating plans</span></a>, benefit obligations shall be determined using the liquidation basis of accounting (see Subtopic <a altsource=\"GUID-F0CE4D19-6B2D-4FC1-8D41-8831E94834AC.ditamap\" class=\"ditamap\">205-30</a>), and their carrying value may differ from the actuarial present value of benefit obligations reported for an ongoing plan. Consideration shall be given upon the determination that liquidation is imminent to whether any or all <a href=\"/glossary/b/#benefits\" class=\"term\" title=\"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.\"><span>benefits</span></a> become vested. </span></span></div></div>","snippet":"For terminating plans, benefit obligations shall be determined using the liquidation basis of accounting (see Subtopic 205-30), and their carrying value may differ from the actuarial present value of benefit obligations …","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:c82a2a88c9eb0ba625acfaf1a4af01553acad2b96daa4a4a9e936e3a9170cc78","downloaded_from":"2026-09-10T02:25:47.719Z","last_downloaded_at":"2026-09-10T02:25:47.719Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481000","source_sha256":"c54408312075bc3338d6c0f2063b7706e838f25560a9ef74d4f995c4b70a770f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:14883d56859d3cd532dd7e81e236a72eea9c1bdcf1af88fb06b93b36e651805d","downloaded_from":"2026-09-10T02:25:47.719Z","last_downloaded_at":"2026-09-10T02:25:47.719Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481000","source_sha256":"c54408312075bc3338d6c0f2063b7706e838f25560a9ef74d4f995c4b70a770f"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:bb8eae646755d8fbf07babdfae911785265bf12c477aa00b1b6855a0e8098bf4","downloaded_from":"2026-09-10T02:25:47.719Z","last_downloaded_at":"2026-09-10T02:25:47.719Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147481000","source_sha256":"c54408312075bc3338d6c0f2063b7706e838f25560a9ef74d4f995c4b70a770f"}},{"number":"50","label":"50 Disclosure","anchor":"50-disclosure","is_sec":false,"groups":[{"block":null,"heading":null,"paragraphs":[{"citation":"965-40-50-1","para":"50-1","html":"<div class=\"asc-body\"><div class=\"norm-text\"><span class=\"sfragment\" id=\"sfr_246CAD13-6E94-1014-A13F-6E4B94C84136\"><span class=\"sfragment-source\">When the decision has been made to terminate a plan or when a wasting trust (that is, a plan under which participants no longer accrue <a href=\"/glossary/b/#benefits\" class=\"term\" title=\"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.\"><span>benefits</span></a> but that will remain in existence as long as necessary to pay already accrued benefits) exists, the relevant circumstances shall be disclosed in all subsequent financial statements issued by the plan. </span></span></div></div>","snippet":"When the decision has been made to terminate a plan or when a wasting trust (that is, a plan under which participants no longer accrue benefits but that will remain in existence as long as necessary to pay already accrue…","pending":false,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:0936266430da3886baa08682fd27889239614343eb4a612f9345ce04a0f581b1","downloaded_from":"2026-09-10T02:25:49.530Z","last_downloaded_at":"2026-09-10T02:25:49.530Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480970","source_sha256":"3fc11c85e1797c46bbb71220771f4fc590f75061582817cbc79a69c17eaf3dfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:d86a13ec4c40a7cbb1c2429218660f2bacd4d77bdc9c1a68348c3541b536685b","downloaded_from":"2026-09-10T02:25:49.530Z","last_downloaded_at":"2026-09-10T02:25:49.530Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480970","source_sha256":"3fc11c85e1797c46bbb71220771f4fc590f75061582817cbc79a69c17eaf3dfe"}}],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:9e12b98eba5241f5d041b34c11482579dd98810b28a7f3c76401b3060c8dc0bc","downloaded_from":"2026-09-10T02:25:49.530Z","last_downloaded_at":"2026-09-10T02:25:49.530Z","date_scope":"source_page","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps","source_key":"1943274/2147480970","source_sha256":"3fc11c85e1797c46bbb71220771f4fc590f75061582817cbc79a69c17eaf3dfe"}}],"enrichment":{"summary":"ASC 965-40 governs accounting and reporting by health and welfare benefit plans that are terminating. Once liquidation of the plan is deemed imminent under paragraph 205-30-25-2, the plan must prepare its financial statements using the liquidation basis of accounting under Subtopic 205-30, including for the year-end statements if imminence is determined before the plan year ends. Benefit obligations are measured on the liquidation basis rather than as actuarial present values, and the termination or wasting-trust circumstances must be disclosed in all subsequent plan financial statements.","key_points":["The scope follows the Overall Subtopic scope for health and welfare benefit plans (965-40-15-1), and covers only terminating plans (965-40-05-1).","If liquidation is deemed imminent (as defined in 205-30-25-2) before the end of the plan year, the plan's year-end financial statements must be prepared using the liquidation basis of accounting under Subtopic 205-30 (965-40-25-1).","All plan financial statements for periods ending after the determination that liquidation is imminent use the liquidation basis of accounting (965-40-25-2).","Benefit obligations of a terminating plan are determined on the liquidation basis, and their carrying value may differ from the actuarial present value of benefit obligations reported by an ongoing plan (965-40-35-2).","Upon determining that liquidation is imminent, the plan must consider whether any or all benefits become vested (965-40-35-2).","When a decision to terminate has been made, or when a wasting trust exists (participants no longer accrue benefits but the plan remains to pay accrued benefits), the relevant circumstances must be disclosed in all subsequent financial statements issued by the plan (965-40-50-1)."],"categories":["Subsequent measurement","Disclosure","Compensation and benefits","Industry-specific"],"audience_level":"intermediate","student_note":"The trigger is \"liquidation is imminent\" as defined in 205-30-25-2, not the mere adoption of a termination resolution or the plan's legal dissolution date; once that trigger is met the plan switches wholesale to the liquidation basis, even for a year-end that has not yet arrived. A common mistake is continuing to report benefit obligations at actuarial present value, or assuming a wasting trust needs no disclosure because it is not yet liquidating.","related_topics":["205-30","965-10","960-40","962-40","965-30"],"key_concepts":["terminating plan","liquidation basis of accounting","liquidation imminent","benefit obligations","wasting trust","vesting of benefits","health and welfare benefit plan"],"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:5e72ffbd8db8542fbd40106c7de57c43830127f0fe9ff72fd14c1231e551fcae","downloaded_from":"2026-09-10T02:25:30.319Z","last_downloaded_at":"2026-09-10T02:25:49.530Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"related":[{"number":"960-40","title":"Terminating Plans","topic_title":"Plan Accounting—Defined Benefit Pension Plans","score":0.9569,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:1bc1ad8a50ae56c0c64d36f36f845861f06bacfbd96790ad0126f94d1b45fb3f","downloaded_from":"2026-09-10T02:23:28.176Z","last_downloaded_at":"2026-09-10T02:23:46.986Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"962-40","title":"Terminating Plans","topic_title":"Plan Accounting—Defined Contribution Pension Plans","score":0.9415,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:88cbb96d09e6cfc149e31b4e11ca22c8618870e66ce3d7dd71301824153ad9a3","downloaded_from":"2026-09-10T02:24:05.891Z","last_downloaded_at":"2026-09-10T02:24:22.185Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"965-10","title":"Overall","topic_title":"Plan Accounting—Health and Welfare Benefit Plans","score":0.787,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:cc5b049a631dbdab0a3808e676ee194f6244b8a2edca55a9496a76347f249d9b","downloaded_from":"2026-09-10T02:24:24.502Z","last_downloaded_at":"2026-09-10T02:24:31.271Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"962-10","title":"Overall","topic_title":"Plan Accounting—Defined Contribution Pension Plans","score":0.7592,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:20f89a6b8b6c6c1da5e56eb6aee1a9d92fdda467e36708217dd3881b078ae221","downloaded_from":"2026-09-10T02:23:49.997Z","last_downloaded_at":"2026-09-10T02:24:03.800Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"960-10","title":"Overall","topic_title":"Plan Accounting—Defined Benefit Pension Plans","score":0.748,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:56333854a21ac2141be6437091ac0929061a3b9001df17e7f2e1ccacdfc1295d","downloaded_from":"2026-09-10T02:22:27.759Z","last_downloaded_at":"2026-09-10T02:22:34.407Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},{"number":"965-20","title":"Net Assets Available for Plan Benefits","topic_title":"Plan Accounting—Health and Welfare Benefit Plans","score":0.7343,"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:f225bcec56808dadace43a6440b1bc3fd4da9e20ec96da5bdf1f8c5746b287fe","downloaded_from":"2026-09-10T02:24:33.713Z","last_downloaded_at":"2026-09-10T02:24:58.307Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}],"prev":{"number":"965-30","title":"Plan Benefit Obligations","topic_title":"Plan Accounting—Health and Welfare Benefit Plans","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b6426ffd3a2d0b6d0b0b2746e581ffe18ddfc32ba717290c5a395b7516f2d781","downloaded_from":"2026-09-10T02:25:01.968Z","last_downloaded_at":"2026-09-10T02:25:26.797Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"next":{"number":"970-10","title":"Overall","topic_title":"Real Estate—General","provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:b1e9e78933c1ab616e7b61ba036f1693db7d0e6dcf8e06de1f07de4371cdb17d","downloaded_from":"2026-09-10T02:25:52.021Z","last_downloaded_at":"2026-09-10T02:26:12.373Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}},"provenance":{"source_url":"https://asc.fasb.org/","snapshot_version":"sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f","record_version":"sha256:68899b1327ca918f658930641806741f9b5047b88de083b778aa069fbb51c5b3","downloaded_from":"2026-09-10T02:25:30.319Z","last_downloaded_at":"2026-09-10T02:25:49.530Z","date_scope":"source_page_range","effective_as_of":null,"effective_as_of_status":"Not established by retrieval timestamps"}}