# ASC Topic 965: Plan Accounting—Health and Welfare Benefit Plans Source: FASB Accounting Standards Codification, Basic View [Read online](https://asc.understandingaccounting.org/asc/965/) 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): 2026-09-10T02:24:24.502Z to 2026-09-10T02:25:49.530Z Record version: sha256:371a74f603d4e8178c379b09afd70f9b151680299baa7d68a64fc0c84235b82e Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## Machine-generated topic summary ASC 965 sets out the special-purpose financial reporting model for health and welfare benefit plans as reporting entities in their own right (distinct from the sponsoring employer's accounting under Topic 715, and parallel to Topic 960 for defined benefit pension plans and Topic 962 for defined contribution pension plans). The Overall subtopic (965-10) fixes the scope—all defined benefit and defined contribution health and welfare plans—and explains that whether benefits are insured or self-funded through a trust (VEBA/501(c)(9), 401(h) account, master trust) drives how assets and obligations are accounted for. The two core statements are then built up: 965-20 covers net assets available for benefits and the changes in them (accrue non-benefit liabilities, record noncash contributions at fair value less costs to sell, show contributions by source, net appreciation/depreciation, claims and premiums, and administrative expenses), while 965-30 covers the plan's own benefit obligations, measured at actuarial present value as of the plan year end in three classifications with a reconciliation of year-to-year changes. 965-40 overrides this ongoing-plan model when liquidation is imminent, requiring the liquidation basis of accounting under Subtopic 205-30 and measurement of benefit obligations on that basis. Source downloaded (UTC): 2026-09-10T02:24:24.502Z to 2026-09-10T02:24:31.271Z Record version: sha256:2737bf0db516f87e9d0002cf8ab365cce1e6f2d2db3e26e46c8eec7676216e52 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10: Plan Accounting—Health and Welfare Benefit Plans — Overall ### Machine-generated study aids ```json { "summary": "ASC 965-10 is the Overall subtopic of the health and welfare benefit plan accounting Topic; it defines the scope and gives an overview of how such plans report. It applies to all entities that are defined benefit or defined contribution health and welfare benefit plans, describes how benefits may be delivered (insured contracts versus a self-funded trust such as a VEBA/501(c)(9) trust or 401(h) account), and flags that the insurance arrangement drives how assets and benefit obligations are accounted for. It also notes the ERISA reporting backdrop, including that many plans must file GAAP financial statements.", "key_points": [ "Benefit plan accounting is split among Topic 960 (defined benefit pension plans), Topic 962 (defined contribution pension plans), and Topic 965 (health and welfare benefit plans), while Topic 715 governs the employer's own accounting (965-10-05-1).", "The Topic applies to all entities that are either defined benefit or defined contribution health and welfare benefit plans (965-10-15-2), and its Subtopics provide only incremental guidance for those entities (965-10-15-1).", "Benefits may be provided through insurance contracts paid for by the plan (an insured plan) or from net assets accumulated in a trust established by the plan (a self-funded plan); plans may be contributory or noncontributory (965-10-05-4).", "Plan assets may be held in a legally restricted trust such as a VEBA/501(c)(9) trust, a 401(h) account, or other funding vehicle; a trust always exists for a multiemployer plan, trusteed plans with more than 100 participants generally require an audit, and DOL will not accept an accountant's report covering assets of more than one plan (965-10-05-5).", "A VEBA trust with a bank or trust company trustee that holds assets of more than one plan of a single employer or commonly controlled group is a master trust subject to DOL master trust filing requirements (965-10-05-6).", "Accounting for plan assets and benefit obligations depends on the insurance arrangement — whether the insurer assumes risk (experience-rated, pooled, minimum premium, stop-loss) or merely provides administrative or investment management services (965-10-05-7); experience-rating refunds are often not determined until months after the policy year ends (965-10-05-8).", "Paragraphs 965-205-45-6 through 45-9 and 965-205-50-2 through 50-4 apply when a portion or all of the benefits are funded through a 401(h) feature in a defined benefit pension plan (965-10-15-3)." ], "categories": [ "Industry-specific", "Financial statement presentation", "Disclosure" ], "audience_level": "introductory", "student_note": "This is the gateway subtopic: it tells you which Topic governs a given benefit plan and reminds you that the plan itself — not the employer — is the reporting entity (employer accounting is ASC 715). A common misunderstanding is assuming a fully insured plan needs no plan-level accounting; you must analyze the insurance contract to see whether risk actually transferred.", "related_topics": [ "960", "962", "715", "965-205", "965-30", "965-40" ], "key_concepts": [ "health and welfare benefit plan", "insured plan vs. self-funded plan", "veba / 501(c)(9) trust", "401(h) account", "master trust", "experience-rating refund", "erisa reporting", "multiemployer plan" ] } ``` Source downloaded (UTC): 2026-09-10T02:24:24.502Z to 2026-09-10T02:24:24.502Z Record version: sha256:82b0fdc07315f92841410bed371e90084e7b595debb02b2e216bb8432828c246 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/965/10/#00-status) SEC content: no ##### [965-10-00-1](https://asc.understandingaccounting.org/asc/965/10/#965-10-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:24.502Z to 2026-09-10T02:24:24.502Z Record version: sha256:f99fda85e867c9e99f7b00d52ff9dbc71b686943907abf19f9511119c7b002da 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
Contributory Plan (2nd def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit Health and Welfare PlansSupersededAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution Health and Welfare PlansSupersededAccounting Standards Update No. 2014-0603/14/2014
Defined Contribution PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Noncontributory PlanAddedAccounting Standards Update No. 2014-0603/14/2014
965-10-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-10-05-4AmendedAccounting Standards Update No. 2014-0603/14/2014
965-10-15-2AmendedAccounting Standards Update No. 2014-0603/14/2014
965-10-15-3AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:64230167dbc40cf63df235993355e5cf816b72fe90331d2ca5eeca4acef7d8dd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/965/10/#05-overview-and-background) SEC content: no ##### [965-10-05-1](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:63309b989d489098fcaacd234f9b7a9c2f4ea2d1da1b18a84621b272c5de4c31 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Codification contains several Topics for benefit plan accounting due to the differing accounting treatments for various forms of employee benefit plans. The Topics include: 1. a Plan Accounting—Defined Benefit Pension Plans, Topic 960 2. b Plan Accounting—Defined Contribution Pension Plans, Topic 962 3. c Plan Accounting—Health and Welfare Benefit Plans, (this Topic). 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. ##### [965-10-05-2](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:ed782547805d42da7e85d056a2e06c4c5ebebfe3f4592be6da3f3d61ef4bdf88 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Plan Accounting—Health and Welfare Benefit Plans Topic includes the following Subtopics: 1. a Overall 2. b Net Assets Available for Plan Benefits 3. c Plan Benefit Obligations 4. d Terminating Plans 5. e Presentation of Financial Statements 6. f Receivables 7. g Investments—Debt and Equity Securities 8. h Investments—Other 9. i Property, Plant, and Equipment. ##### [965-10-05-3](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:be4f8e718f9e8d066bb485168bff56a33c3b372ecef43c144050ad2026da07d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Overall Subtopic provides scope-related guidance for this Topic and an overview of accounting and reporting 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."). #### Characteristics of Plans ##### [965-10-05-4](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:db16c85e384b924f961cc83cbe1347e33e4759fb9f65d6bfbe53660f6cddd591 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan participants may be active or terminated employees (including retirees), as well as covered dependents and beneficiaries, of a single employer or group of employers. Employer contributions may be voluntary or required under the terms of a collective bargaining agreement negotiated with one or more labor organizations. Plans may require contributions from employers and participants ([contributory plans](https://asc.understandingaccounting.org/glossary/c/#contributory-plan "A plan under which retirees or active employees contribute part of the cost. In some contributory plans, retirees or active employees wishing to be covered must contribute; in other contributory plans, participants' contributions result in increased benefits.")) or from employers only ([noncontributory plans](https://asc.understandingaccounting.org/glossary/n/#noncontributory-plan "A pension or other postretirement benefit plan under which participants do not make contributions.")). During periods of unemployment, a noncontributory plan may require contributions by participants to maintain their eligibility for benefits. Benefits may be provided in any of the following manners: 1. a Through insurance contracts paid for by the plan (an insured plan) 2. b From net assets accumulated in a trust established by the plan (a self-funded plan). ##### [965-10-05-5](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:5e71de7e51bc371053b729c1461dff50d9322dd144947a445d27024e0cfe035d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. As noted in the preceding paragraph, a plan may establish a trust to hold assets to pay all or part of the covered benefits. The assets may be segregated and legally restricted under a trust arrangement (such as a voluntary employees' beneficiary association or a 501(c)(9) trust, a 401(h) account, or other funding vehicles). Generally, if a separate trust exists, financial statements are required under the Employee Retirement Income Security Act. A trust always exists for a multiemployer plan. Such trusteed plans with more than 100 participants generally will require an audit. For Employee Retirement Income Security Act filings, the U.S. Department of Labor will not accept an accountant's report that covers the assets of more than one plan. ##### [965-10-05-6](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:ac23fb5e76c7c065479599514e6df9f413bf85abaa84bf384cd15d0178c347fe Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the trustee of the Voluntary Employees' Beneficiary Association is a bank or trust company, and the trust holds the assets of more than one plan sponsored by a single employer or by a group of entities under common control, it is a master trust subject to the Department of Labor's master trust filing requirements. #### Arrangements with Insurance Entities ##### [965-10-05-7](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:c936e789b0d47f59d69a060b8880cb9737175dc96317e95dfc1cc4101c9260b2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The nature of, and method of accounting for, the assets and benefit obligations of a health and welfare benefit plan may be determined by the arrangement with an insurance entity. The insurance entity may assume all or a portion of the financial risk (for example, in [fully insured experience-rated arrangements](https://asc.understandingaccounting.org/glossary/f/#fully-insured-experience-rated-arrangement "In a fully insured experience-rated arrangement, specified benefits are paid by the insurance entity that assumes all the financial risk. Contract experience is monitored by the insurance entity. Contract experience may or may not include the experience of other similar contract holders. To the extent that benefits incurred plus risk charges and administration costs are less than premiums paid, the related plan is entitled to an experience-rating refund or dividend (see paragraphs 965-310-25-2965-310-25-3). If the total of benefits incurred, risk charges, and administrative costs exceeds premiums, the accumulated loss is generally borne by the insurance entity but may be carried over to future periods until it has been recovered (see paragraph 965-30-25-5). The related plan often has no obligation to continue coverage or to reimburse the carrier for any accumulated loss, although there are certain types of contracts that require additional payments by the plan."), [fully insured pooled arrangements](https://asc.understandingaccounting.org/glossary/f/#fully-insured-pooled-arrangement "In a fully insured pooled arrangement, specified benefits are covered by the insurance entity. The insurance entity pools the experience of the plan with that of other similar businesses and assumes the financial risk of adverse experience. In such an arrangement, a plan generally has no obligation for benefits covered by the arrangement other than the payment of premiums due to the insurance entity (see paragraph 965-10-05-9)."), [minimum premium plan arrangements](https://asc.understandingaccounting.org/glossary/m/#minimum-premium-plan-arrangement "In a minimum premium plan arrangement, specified benefits are paid by the insurance entity. The insurance contract establishes a dollar limit, or trigger point. All claims paid by the insurance entity below the trigger point are reimbursed by the plan to the insurance entity. The insurance entity is not reimbursed for benefits incurred that exceed the trigger point. This type of funding arrangement requires the plan to fund the full claims experience up to the trigger point. Minimum premium plan arrangements may have characteristics of both self-funded and fully insured experience-rated arrangements."), and [stop-loss arrangements](https://asc.understandingaccounting.org/glossary/s/#stop-loss-arrangement "In a stop-loss insurance arrangement, a plan's obligation for any plan participant's claims may be limited to a fixed dollar amount, or the plan's total obligation may be limited to a maximum percentage (for example, 125 percent) of a preset expected claims level. These arrangements are commonly used with administrative service arrangements. The insurance entity assumes the benefit obligation in excess of the limit. Stop-loss insurance arrangements may have characteristics of both self-funded and fully insured arrangements.")), or it may provide only administrative services (for example, in [administrative service arrangements](https://asc.understandingaccounting.org/glossary/a/#administrative-service-arrangement "In an administrative service arrangement, the plan retains the full obligation for plan benefits. The plan may engage an insurance entity or other third party to act as the plan administrator. The administrator makes all benefit payments, charges the plan for those payments, and collects a fee for the services provided.")) or investment management services. It is important to have an understanding of the insurance arrangement to determine whether any or all of the risks associated with benefit payments or claims have been transferred to the insurance entity. ##### [965-10-05-8](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:2b6c9ef255888612763385ded12d4d5bd315da91f6fdfb3cd59ca9ef42acb248 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Certain group insurance contracts covering health and welfare benefit plans include a provision for a refund, at the end of the policy year, of the excess of premiums paid over the total of paid claims, required reserves, and the fee charged by the insurance entity. Often such experience-rating refunds (or dividends) are not determined by the insurance entity for several months after the end of the policy year. ##### [965-10-05-9](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:f2537f7d8fe2924feec3107c063e29b90f5e76f558a742cb3f5f9b3c75a0824d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefits to participants may be provided through insurance arrangements that transfer the risks of loss or liability to an insurance entity. Group insurance contracts for health and welfare plans are usually written for a one-year period, although the contract may provide for annual renewal. The contract generally specifies, among other things, all of the following: 1. a The schedule of benefits 2. b Eligibility rules 3. c Premium rate per eligible participant 4. d The date that premiums are due. #### The Employee Retirement Income Security Act of 1974 ##### [965-10-05-10](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:a4c0e6bbc6a4f42edf8215a263a0775a7003652118915234fce4fdb5ed0296d8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Health and welfare benefit 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, it 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). ##### [965-10-05-11](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:26.932Z to 2026-09-10T02:24:26.932Z Record version: sha256:a67a44a239de7011039d839a5d992f23c501e2bd0fe70bc60981803773da99f6 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 health and welfare benefit plan financial statements. Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:b92afdbcbc13d3e4f2f9ea6c4c3292e46f85382b36b07f48848b7f4a357aa1cf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-10-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/965/10/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [965-10-15-1](https://asc.understandingaccounting.org/asc/965/10/#965-10-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:c963be444e8755660d7859ad710d5bd0e3355541d9cb1090816f337f1d124158 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The Subtopics within the Plan Accounting—Health and Welfare Benefit 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—Health and Welfare Benefit Plans Subtopics. #### Entities ##### [965-10-15-2](https://asc.understandingaccounting.org/asc/965/10/#965-10-15-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:f7911eb58e0281e7fa78078f6783c0076285f3da2f772f667b7e1c754b1fe973 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The guidance in this Topic applies to all entities that are either [defined benefit](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)") or [defined contribution health and welfare benefit plans](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.") (referred to as [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.")). ##### [965-10-15-3](https://asc.understandingaccounting.org/asc/965/10/#965-10-15-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:24:28.711Z to 2026-09-10T02:24:28.711Z Record version: sha256:517961c09d9f36c15f01040e501682e8776182c154071eeff5c8b34dbaea0092 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Paragraphs [965-205-45-6 through 45-9](https://asc.understandingaccounting.org/asc/205/965/#205-965-45-6) and [965-205-50-2 through 50-4](https://asc.understandingaccounting.org/asc/205/965/#205-965-50-2) apply to health and welfare benefit plans if a portion or all of the [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.") under such plans are funded through a 401(h) feature in a defined benefit pension plan. 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. Source downloaded (UTC): 2026-09-10T02:25:01.968Z to 2026-09-10T02:25:26.797Z Record version: sha256:7a2bf86d51999c16251013496fac4101a2bb3a8d2548c253edcdd07154de4257 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30: Plan Accounting—Health and Welfare Benefit Plans — Plan Benefit Obligations ### Machine-generated study aids ```json { "summary": "ASC 965-30 governs how a health and welfare benefit plan measures and reports its own benefit obligations (as distinct from the sponsoring employer's obligations). Benefit obligations, measured at actuarial present value as of the plan's year end, comprise three classifications: (1) claims payable, claims incurred but not reported (IBNR), and premiums due to insurance entities; (2) accumulated eligibility credits and postemployment benefits; and (3) postretirement benefits split among retirees, participants fully eligible, and participants not yet fully eligible (965-30-35-1). Plans must also present the significant factors causing year-to-year changes in each classification.", "key_points": [ "Benefit obligations must be measured and reported as of the end of the plan year so that assets and obligations are as of the same date, though a recent valuation may be rolled forward with adjusted discount rates if results would not be materially different (965-30-35-5 through 35-6).", "Postemployment benefits are recognized for current participants when the rights are attributable to services already rendered, the benefits vest or accumulate, payment is probable, and the amount is reasonably estimable; if the first two conditions fail, recognition occurs when the triggering event occurs and the amount is estimable (965-30-25-3, 965-30-25-4).", "The postretirement benefit obligation is the actuarial present value of all future benefits attributed to service rendered to the measurement date; for participants not yet fully eligible it is attributed over the credited service period up to the full eligibility date (965-30-35-16 through 35-18).", "Benefit obligations include premiums due but not paid, estimated retrospective/additional premiums when loss ratios are exceeded, and premium deficits under experience-rated arrangements if probable and reasonably estimable (965-30-25-2, 965-30-25-5, 965-30-35-13).", "Benefits expected to be earned for future service by active participants (for example, vacation benefits) are excluded, and benefits provided through an insurance contract are excluded from the postretirement benefit obligation (965-30-35-4, 965-30-35-20).", "In an insured plan, claims payable and IBNR are the insurance entity's responsibility and are excluded from plan benefit obligations; a self-funded plan presents claims payable and currently due plus IBNR for active participants (965-30-45-2).", "Changes in the three classifications must be presented in a reconciliation or narrative, disclosing at minimum the effects of plan amendments, plan mergers or spinoffs, and changes in actuarial assumptions, which are treated as changes in accounting estimates with no restatement (965-30-45-5 through 45-7)." ], "categories": [ "Industry-specific", "Compensation and benefits", "Subsequent measurement", "Disclosure" ], "audience_level": "advanced", "student_note": "This is plan-level (not employer-level) reporting: the plan itself reports obligations even when the contributing employers of a multiemployer plan record none under ASC 715-60 (965-30-35-19). A frequent mistake is including IBNR and claims payable for a fully insured plan, or attributing postretirement benefits over the full working life rather than only to the full eligibility date.", "related_topics": [ "965-10", "965-20", "965-40", "715-60", "712", "960" ], "key_concepts": [ "benefit obligations", "incurred but not reported claims", "postretirement benefit obligation", "postemployment benefits", "accumulated eligibility credits", "actuarial present value", "self-funded plan", "premium deficit" ] } ``` Source downloaded (UTC): 2026-09-10T02:25:01.968Z to 2026-09-10T02:25:01.968Z Record version: sha256:d6a2d12570c7365f45a2318a5b63cf279d672050179014088133da95ce50777c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/965/30/#00-status) SEC content: no ##### [965-30-00-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:01.968Z to 2026-09-10T02:25:01.968Z Record version: sha256:6fed96e8fbefdf8519ac239bee97a2cb1318d109a83173f2153d0d3978f50146 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 Benefit Health and Welfare PlansSupersededAccounting Standards Update No. 2014-0603/14/2014
Defined Benefit PlanAddedAccounting Standards Update No. 2014-0603/14/2014
Plan Assets (1st def.)AmendedAccounting Standards Update No. 2016-1912/14/2016
Plan Assets (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
965-30-25-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-30-35-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-30-35-6AmendedAccounting Standards Update No. 2016-1912/14/2016
965-30-35-6AmendedAccounting Standards Update No. 2014-0603/14/2014
965-30-45-5AmendedAccounting Standards Update No. 2014-0603/14/2014
965-30-45-8AmendedAccounting Standards Update No. 2014-0603/14/2014
965-30-50-2AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:25:04.559Z to 2026-09-10T02:25:04.559Z Record version: sha256:3d07e3fedd551485d1082751bef3823cc389ffe0d0a8a01919e44d90bd6eec79 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/965/30/#05-overview-and-background) SEC content: no ##### [965-30-05-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:04.559Z to 2026-09-10T02:25:04.559Z Record version: sha256:0bd7a83837bfb616335014aec767126ef2dadd58584943bcf055bc4cc9417bd2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance on plan benefit obligations 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): 2026-09-10T02:25:08.131Z to 2026-09-10T02:25:08.131Z Record version: sha256:e7a490917774133a4ba2ece562663c6833f8ba91acc055426a57e349768fecbd Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/965/30/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [965-30-15-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:08.131Z to 2026-09-10T02:25:08.131Z Record version: sha256:10479b9893d03299ef641361697a0ddcfa18649740ff8e3c0f87ceee6eff3cfd 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): 2026-09-10T02:25:15.288Z to 2026-09-10T02:25:15.288Z Record version: sha256:bea45e1d3334049ab6e944f0ea02cb6efe617a5939b8418cfa409b94edaca94b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/965/30/#25-recognition) SEC content: no #### Benefit Payments ##### [965-30-25-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:15.288Z to 2026-09-10T02:25:15.288Z Record version: sha256:d9a4a76199c2dfb4dc2095d1b80d50fc9a7b7ccf62ab892b9af19a53cf263226 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. A health and welfare plan may process benefit payments directly or it may retain a third-party administrator (for example, an [administrative service arrangement](https://asc.understandingaccounting.org/glossary/a/#administrative-service-arrangement "In an administrative service arrangement, the plan retains the full obligation for plan benefits. The plan may engage an insurance entity or other third party to act as the plan administrator. The administrator makes all benefit payments, charges the plan for those payments, and collects a fee for the services provided.")). In either case, a plan that is fully or partially self-funded is obligated for the related [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."), as described in this Subtopic. #### Premiums Due under Insurance Arrangements ##### [965-30-25-2](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:15.288Z to 2026-09-10T02:25:15.288Z Record version: sha256:88c6e4288e75905a0b8f10539fa27f0c365949a0f245b2924241282588d64506 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The benefit obligations shall include any obligation for premiums due but not paid under insurance arrangements. #### Postemployment Benefits ##### [965-30-25-3](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:15.288Z to 2026-09-10T02:25:15.288Z Record version: sha256:de9deafd439c6838d12d6639f064973622696180e6f1f27f2fee061bd89e3dad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. ##### [965-30-25-4](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:15.288Z to 2026-09-10T02:25:15.288Z Record version: sha256:d4ca8635f2de607ca9446932c5ea68e10f3eccc56e7784e1ec18dc605b174a8b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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. #### Obligation for Premium Deficit ##### [965-30-25-5](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:15.288Z to 2026-09-10T02:25:15.288Z Record version: sha256:7440ac5ec478b5f3892c4ffa5038d7b4351e1543f07588da8ec77f2245444f56 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Experience ratings determined by the insurance entity or by estimates (for example, in [fully insured experience-rated arrangements](https://asc.understandingaccounting.org/glossary/f/#fully-insured-experience-rated-arrangement "In a fully insured experience-rated arrangement, specified benefits are paid by the insurance entity that assumes all the financial risk. Contract experience is monitored by the insurance entity. Contract experience may or may not include the experience of other similar contract holders. To the extent that benefits incurred plus risk charges and administration costs are less than premiums paid, the related plan is entitled to an experience-rating refund or dividend (see paragraphs 965-310-25-2965-310-25-3). If the total of benefits incurred, risk charges, and administrative costs exceeds premiums, the accumulated loss is generally borne by the insurance entity but may be carried over to future periods until it has been recovered (see paragraph 965-30-25-5). The related plan often has no obligation to continue coverage or to reimburse the carrier for any accumulated loss, although there are certain types of contracts that require additional payments by the plan.")) 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. Source downloaded (UTC): 2026-09-10T02:25:19.156Z to 2026-09-10T02:25:19.156Z Record version: sha256:273310f99362c4b41d55b813769a238a4d799d09b16f67c5ad913b945108618c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/965/30/#30-initial-measurement) SEC content: no ##### [965-30-30-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:19.156Z to 2026-09-10T02:25:19.156Z Record version: sha256:6f763b1248b66c5b364834354d0166e754b1906c815497d5a8e12f99172b011d Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. \[Section not used\] Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:e677fbaec27c13476868a042937e3f53f2f330c0a89174ef92e427ca663ebf10 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/965/30/#35-subsequent-measurement) SEC content: no #### Components of Benefit Obligations ##### [965-30-35-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:6b2b14c51adb497c3b1ef2c7aa4c7b591fc8011ccf31ce103b4c26d4c6e2880c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefit obligations for single-employer, multiple-employer, and multiemployer [defined benefit health and welfare plans](https://asc.understandingaccounting.org/glossary/d/#defined-benefit-plan "A defined benefit plan provides participants with a determinable benefit based on a formula provided for in the plan. Defined benefit health and welfare plans—Defined benefit health and welfare plans specify a determinable benefit, which may be in the form of a reimbursement to the covered plan participant or a direct payment to providers or third-party insurers for the cost of specified services. Such plans may also include benefits that are payable as a lump sum, such as death benefits. The level of benefits may be defined or limited based on factors such as age, years of service, and salary. Contributions may be determined by the plan's actuary or be based on premiums, actual claims paid, hours worked, or other factors determined by the plan sponsor. Even when a plan is funded pursuant to agreements that specify a fixed rate of employer contributions (for example, a collectively bargained multiemployer plan), such a plan may nevertheless be a defined benefit health and welfare plan if its substance is to provide a defined benefit. Defined benefit pension plan—A pension plan that defines an amount of pension benefit to be provided, usually as a function of one or more factors such as age, years of service, or compensation. Any pension plan that is not a defined contribution pension plan is, for purposes of Subtopic 715-30, a defined benefit pension plan. Defined benefit postretirement plan—A plan that defines postretirement benefits in terms of monetary amounts (for example, $100,000 of life insurance) or benefit coverage to be provided (for example, up to $200 per day for hospitalization, or 80 percent of the cost of specified surgical procedures). Any postretirement benefit plan that is not a defined contribution postretirement plan is, for purposes of Subtopic 715-60, a defined benefit postretirement plan. (Specified monetary amounts and benefit coverage are collectively referred to as benefits.)") shall include the actuarial present value, as applicable, for all of the following: 1. a Claims payable, claims incurred but not reported, and premiums due to insurance entities. Claims incurred but not reported may be computed in the aggregate for active participants and retirees. Alternatively, if claims incurred but not reported are not calculated in the aggregate for active participants and retirees, such claims for retirees are recorded in the postretirement benefit obligation. 2. b [Accumulated eligibility credits](https://asc.understandingaccounting.org/glossary/a/#accumulated-eligibility-credits "Plan participants may qualify for a benefit in which eligibility credits or hours accumulate and result in the plan covering payment of insurance premiums or benefits for a period of time for those participants who have accumulated a sufficient number of such credits or hours to be eligible for the credits. Eligible participants are provided with insurance coverage during periods of unemployment, when employer contributions to the plan would not otherwise provide coverage or benefits. The accumulated eligibility credits are sometimes referred to as bank of hours.") and postemployment [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."), net of amounts currently payable 3. c Postretirement benefits for the following groups of participants: 1. 1 Retired plan participants, including their beneficiaries and covered dependents, net of amounts currently payable and claims incurred but not reported (assuming such amounts are included in the aggregate computation described in \[a\]). 2. 2 Other plan participants fully eligible for benefits 3. 3 Plan participants not yet fully eligible for benefits. ##### [965-30-35-1A](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-1A) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:ced2332356def45e20d04f4ee8453052e30daeeee436c8a0530503dcb23a942b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For a self-funded plan, the cost of incurred but not reported claims shall be measured at the present value, as applicable, of the estimated ultimate cost to the plan of settling the claims. Estimated ultimate cost shall reflect the plan's obligation to pay claims to or for participants, regardless of status of employment, beyond the financial statement date pursuant to the provisions of the plan or regulatory requirements. ##### [965-30-35-2](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:774e32cb073b574db2991736342960ba13d3251217e10457dfe22f7cdb2a653b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Administrative expenses expected to be paid by the plan (but not those paid directly by the plan's participating employer\[s\]) that are associated with providing the plan's benefits shall be reflected by either of the following: 1. a Including the estimated costs in the benefits expected to be paid by the plan 2. b Reducing the discount rate(s) used in measuring the benefit obligation. ##### [965-30-35-3](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:048e686a3359c96cc3e66cf1f181a05fa5540bdb0086ee7fbe0a54887542bc51 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Aggregating claims payable and claims incurred but not reported is often appropriate if adequate time has passed to provide sufficient data on costs incurred and the actuarially determined expected cost of long-term medical claims is insignificant. ##### [965-30-35-4](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:0075b4e696abb7294b0ce60d26656b60dc4df9d9dfc5c4817d816193b5f40257 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefits expected to be earned for future service by active participants (for example, vacation benefits) during the term of their employment shall not be included. ##### [965-30-35-5](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:7c23f88040e5c272ac314a220f9085c9ac6c5bbcbb20f0100307a4a711cb7be9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Benefit obligations shall be reported as of the end of the plan year. ##### [965-30-35-6](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:c566e5eb49da39687cc4af2db44b7921510b764e79649818b2b6180c2b6cb624 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The financial status of the plan considers assets and obligations as of the same date. Because [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.") are required to be presented as of the plan's year end, the benefit obligations also shall be measured and presented as of the plan's year end. That requirement does not, however, preclude the plan from using the most recent benefit obligations valuation rolled forward to the plan's year end to account for events occurring between the most recent valuation date and the plan's year end (such as employee service and benefit payments), provided that it is reasonable to expect that the results will not be materially different from the results of an actuarial valuation as of the plan's year end. In rolling forward the benefit obligations to the plan's measurement date, the discount rates shall be adjusted as appropriate to reflect current rates of return on high-quality fixed-income investments. For example, if a valuation was performed at September 30 and the plan has a calendar year end, the benefit obligations as of September 30 should be rolled forward to December 31, by making appropriate adjustments, such as for additional employee service; the time value of money; benefits paid; and changes in the number of participants, actuarial assumptions, discount rates, per capita claims costs, and plan terms. ##### [965-30-35-7](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:7b55f40ed2645521a956c16af31e01661ce7b759098050aa1c3548189cb21976 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The effect of plan amendments shall be included in the computation of the expected and accumulated postretirement benefit obligations once they have been contractually agreed to, even if some provisions take effect only in future periods. For example, if a plan amendment grants a different benefit level for employees retiring after a future date, that increased or reduced benefit level should be included in current-period measurements for employees expected to retire after that date. #### Postemployment Benefits ##### [965-30-35-8](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:3db069f705a68b343a8dcfab3021aac7fe828bcb0ca500e20797fb4672c6b206 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). ##### [965-30-35-9](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-9) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:9197a79aa639a0e65cbe985c6f65a73516e4bb7328cfdeba3e25eaa02bc6bddb Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postemployment benefit obligation shall be measured as the actuarial present value of the future benefits attributed to plan participants' services rendered to the measurement date, reduced by the actuarial present value of future contributions expected to be received from the current plan participants. That amount represents the benefit obligation that is to be funded by contributions from the plan's participating employer(s) and from existing plan assets. The obligation is to be measured assuming the plan continues in effect and all assumptions about future events are met. Any anticipated forfeitures or integration with other related programs (for example, state unemployment benefits) shall be considered. The benefit obligation shall be discounted using rates of return on high-quality fixed-income investments currently available with cash flows that match the timing and amount of expected benefit payments and expected participant contributions. ##### [965-30-35-10](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-10) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:5a54084ad8fa6f663b1d0f716717cdcbfebe32a32367374d7db8fe675fded522 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. When participant contributions are required after the event triggering postemployment benefits occurs (for example, employee disability, as described in paragraph [965-30-25-4](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-4)), the postemployment benefit obligation shall be measured in a manner consistent with paragraph [965-30-35-9](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-9). As a result, in those situations the benefit obligation shall represent the amount that is to be funded by contributions from the participating employer(s) and from existing plan assets. ##### [965-30-35-11](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-11) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:e1af1acf6f4baa6cf3e76d07c9e0cbc6cc177b2537f50c13bbc103fd66aa6aee Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph not used](https://asc.understandingaccounting.org/updates/page-1833002/). #### Accumulated Eligibility Credits ##### [965-30-35-12](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-12) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:9c2803daeb456fdc10512aa6142873b89850da65b2d955de5fb1543a9c76e1ea Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plans may provide for the payment of insurance premiums or benefits for a period of time for those participants who have accumulated a sufficient number of eligibility credits or hours. At the financial statement date, such accumulated eligibility credits represent an obligation of the plan arising from prior employee service for which employer contributions have been received. This benefit obligation is generally determined by applying current insurance premium rates to accumulated eligibility credits or, for a self-funded plan, by applying the average cost of benefits per eligible participant to accumulated eligibility credits. In either case, the obligation for accumulated eligibility credits shall consider assumptions for mortality and expected employee turnover or other appropriate adjustments, to reflect the obligation at the amount expected to be paid. #### Premiums Due under Insurance Arrangements ##### [965-30-35-13](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-13) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:a80addeac8d063c9192db2394b0ce8f11472dae1bb6ae2acc19d620ad983a7c8 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an insurance contract requires payment of additional premiums (for example, retrospective premiums) when the loss ratio exceeds a specified percentage, an obligation for the estimated additional premiums shall be included in the benefit obligations. #### Stop-Loss Arrangements ##### [965-30-35-14](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-14) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:4ee02c4364ceed9cea54fbd22b409df3b97c8ba63021c39596263ca1ef8fa423 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Stop-loss arrangements](https://asc.understandingaccounting.org/glossary/s/#stop-loss-arrangement "In a stop-loss insurance arrangement, a plan's obligation for any plan participant's claims may be limited to a fixed dollar amount, or the plan's total obligation may be limited to a maximum percentage (for example, 125 percent) of a preset expected claims level. These arrangements are commonly used with administrative service arrangements. The insurance entity assumes the benefit obligation in excess of the limit. Stop-loss insurance arrangements may have characteristics of both self-funded and fully insured arrangements.") may be described by a variety of terms; therefore, details of all insurance or administrative arrangements should be reviewed carefully to determine if stop-loss provisions are included and to determine the specific benefit obligations assumed by the insurance entity. #### Postretirement Benefit Obligations ##### [965-30-35-15](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-15) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:c4d89d9146535a17e6e04fa221f1b56b67b70a9227228be87725a7d12ecfeb89 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [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.") may continue to provide benefits to participants after retirement (postretirement benefits). Those benefits may commence immediately upon termination of service or payment may be deferred until the participant attains a specified age. If a plan provides postretirement benefits to participants, an estimated amount for those benefits, as described in the following paragraph, shall be included in the benefit obligations. ##### [965-30-35-16](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-16) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:34f16cf9b08abf01ff1f53c2d4cd3c08f1c7364bd5db5d3c3115db1d32e434e9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postretirement benefit obligation as of the measurement date is the actuarial present value of all future benefits attributed to plan participants' services rendered to that date, assuming the plan continues in effect and all assumptions about future events are fulfilled. Postretirement benefits comprise benefits expected to be paid to or on behalf of any of the following who are expected to receive benefits under the health and welfare benefit plan: 1. a A retired or active participant 2. b A terminated participant 3. c A beneficiary or covered dependent. ##### [965-30-35-17](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-17) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:0845b65228b92bed1b99bed30920ea12131ac62d4db9f13dc12bbe27d5c9e44c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Postretirement benefits expected to be paid to or for any of the following who are still earning their postretirement benefits (that is, one who is not yet fully eligible) shall be measured over the participant's credited period of service up to the date when full eligibility for benefits is attained: 1. a An active participant 2. b A beneficiary 3. c A covered dependent. ##### [965-30-35-18](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-18) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:dde6646a00d5b66d89ec0857bf13d391bb4d7b61a7c18b314240ba28a4dbab42 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For example, if a participant has worked 8 years and must work another 16 to be fully eligible for benefits after retirement, one-third of the postretirement benefits have been earned and should be included in the postretirement benefit obligation if it is probable that the employee will work the remaining 16 years. ##### [965-30-35-19](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-19) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:30090878013210e3628d129db07793df108dfdf1cdeee55a54d31cc042197aed Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If a multi-employer health and welfare benefit plan provides postretirement benefits, the benefit obligations shall include the postretirement benefit obligation. Consideration should be given to the promises currently made to employees and the history of making such payments to retirees. The fact that benefits may be reduced or even potentially eliminated would not ordinarily affect the promise made as of the end of the plan year unless the change meets the substantive plan criteria of Subtopic 715-60 (for example, an amendment is in place or has been communicated to employees). The fact that the contributing employers of a multi-employer plan do not record a similar obligation under that Subtopic does not affect the accounting for the obligations by the plan. ##### [965-30-35-20](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-20) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:1ff03f55bdb9dd33a68e4ddbfa4ff0b6d89e632061cddcc56e47d3676913b372 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postretirement benefit obligation shall be measured using the plan's written provisions to the extent possible, as well as the substantive plan if it differs from the written plan. In many health and welfare benefit plans, postretirement benefits are not defined as a specified amount for each year of service. Section 715-60-35 describes the measurement of the postretirement benefit obligation. For multi-employer plans that do not have date-of-hire information as required by paragraph [715-60-35-66](https://asc.understandingaccounting.org/asc/715/60/#715-60-35-66), reasonable estimates thereof shall be used to measure the obligation. Death or disability benefits provided outside of a pension plan (if the employee is considered to be retired) shall also be included in the calculation of the postretirement benefit obligation. Benefits that are provided through an insurance contract shall be excluded. Insured plans shall be reviewed carefully to determine the extent to which postretirement benefits are insured. Currently, except for single-premium life insurance contracts, few, if any, insurance contracts unconditionally obligate an insurance entity to provide most forms of postretirement benefits. ##### [965-30-35-21](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-21) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:b439dbbcce5ee91615270be8a9875b7c436f08d79408b210904647c058f489a4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In measuring the postretirement benefit obligation explicit assumptions shall be used, each of which represents the best estimate of a particular future event. All assumptions shall presume that the plan will continue in its present form, unless there is evidence to the contrary. Principal actuarial assumptions used shall include all of the following: 1. a Discount rates, used to reflect the time value of money in determining the present value of future cash outflows currently expected to be required to satisfy the liability in the due course of business 2. b The timing and amount of future postretirement benefit payments (taking into consideration per capita claims cost by age, health care cost-trend rates, current Medicare reimbursement rates, retirement age, dependency status, and mortality) 3. c Salary progression (for pay-related plans) 4. d The probability of payment (considering turnover, retirement age, dependency status, and mortality) 5. e Participation rates (for contributory plans). ##### [965-30-35-22](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-22) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:22.220Z to 2026-09-10T02:25:22.220Z Record version: sha256:a2a125ebcbbb69c68bc8a139cb24251e7b06d29f5d05cc8899208428a4e06165 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. The postretirement benefit obligation information shall include the following classifications: 1. a Obligations related to retired plan participants, including their beneficiaries and covered dependents 2. b Obligations related to active or terminated participants who are fully eligible to receive benefits 3. c Obligations related to other plan participants not yet fully eligible for benefits. Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:0b264633c4c4ba2171a94efc49f877e8fa5ecf3ac0f392577a27c892c375610f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-45: 45 Other Presentation Matters [Read section](https://asc.understandingaccounting.org/asc/965/30/#45-other-presentation-matters) SEC content: no #### Classifications of Benefit Obligations ##### [965-30-45-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:7e0b0600d2ed14d4ce904d67fcc04b58925628fb1014616dffb5046ecc2a0fec Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. To the extent they exist, the amounts of benefit obligations in each of the three major classifications identified in paragraph [965-30-35-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-1) shall be shown as separate line items in the financial statements or notes to financial statements. Regardless of the format selected, the plan financial statements shall present the benefit obligations information in its entirety in the same location. ##### [965-30-45-2](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:69ae189dff570bc39c10dcdb35ed76ca2933742514f1f585cfceb3c276f0d370 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. In an insured health and welfare benefit plan, claims payable and currently due and claims incurred but not yet reported to the plan will be paid by the insurance entity. Consequently, they should be excluded from the benefit obligations of the plan. Benefit obligations of a self-funded plan shall present the amount of both of the following: 1. a Claims payable and currently due for active and retired participants, dependents, and beneficiaries 2. b Incurred but not reported claims for active participants. ##### [965-30-45-3](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:68ae97ca1cbe9c151a85574db438e8df21fc0b7740e503f1f1183c21a774e93b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Incurred but not reported claims for retired participants are included in the postretirement benefit obligation, if separately calculated in accordance with paragraph [965-30-35-1(a)](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-1). #### Changes in Benefit Obligations ##### [965-30-45-4](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:ea2f5adcaff1a9fb05aaba9702a25e9e4dfffd93e72fa4cf9e0d0058ba1b6c15 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Information regarding changes in the benefit obligations within a plan period shall be presented to identify significant factors affecting year-to-year changes in benefit obligations. ##### [965-30-45-5](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:5b7145ce805c51ba1ebe153ca4a9a18cf6e8237f5c456e06bac028bf2c4ce308 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in each of the three major classifications of benefit obligations (see paragraph [965-30-35-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-1)) shall be presented in the body of the financial statements or in the notes to financial statements; the information may be presented in either a reconciliation or narrative format. Providing such information in the following categories will generally be sufficient: 1. a Claims payable, claims incurred but not reported, and premiums due to insurance entities 2. b [Accumulated eligibility credits](https://asc.understandingaccounting.org/glossary/a/#accumulated-eligibility-credits "Plan participants may qualify for a benefit in which eligibility credits or hours accumulate and result in the plan covering payment of insurance premiums or benefits for a period of time for those participants who have accumulated a sufficient number of such credits or hours to be eligible for the credits. Eligible participants are provided with insurance coverage during periods of unemployment, when employer contributions to the plan would not otherwise provide coverage or benefits. The accumulated eligibility credits are sometimes referred to as bank of hours.") and postemployment [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."), net of amounts currently payable 3. c Postretirement benefits for the following: 1. 1 Retired plan participants, including their beneficiaries and covered dependents, net amounts currently payable, and claims incurred but not reported 2. 2 Other plan participants fully eligible for benefits 3. 3 Plan participants not yet fully eligible for benefits. ##### [965-30-45-6](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:c3b9e2f6d208b314fce1200867686284be2c3879a0ad0a2f0e86fbc18b486725 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Minimum disclosure regarding changes in benefit obligations shall include the significant effects of all of the following: 1. a Plan amendments 2. b Changes in the nature of the plan (mergers or spinoffs) 3. c Changes in actuarial assumptions (health care cost-trend rate or interest rate). ##### [965-30-45-7](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:647e0219a2ea9708f2ee22dd2ad1eb81e68501ad0ab0b40e9db40b50b8a36489 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Changes in actuarial assumptions are to be considered as changes in accounting estimates and, therefore, previously reported amounts shall not be restated. The significant effects of other factors may also be identified. These include, for example, the following: 1. a Benefits accumulated. Actuarial experience gains or losses may be included with the effects of additional benefits accumulated rather than separately disclosed. If the effects of changes in actuarial assumptions cannot be separately determined, those effects shall be included in benefits accumulated and described accordingly. 2. b The effects of the time value of money (for interest). 3. c Benefits paid. ##### [965-30-45-8](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-8) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:24.638Z to 2026-09-10T02:25:24.638Z Record version: sha256:153ba0ed779876ecf2fee752c808688587ae084a79d4727d8727cb74a685e1f1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If presented, benefits paid shall not include benefit payments made by an insurance entity pursuant to a contract that is 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."). However, amounts paid by the plan to an insurance entity pursuant to such a contract (including purchases of annuities with amounts allocated from existing investments with the insurance entity) shall be included in benefits paid. Because of the use of different actuarial assumptions, the amount paid by the plan to an insurance entity may be different from the previous measure of the actuarial present value of the related accumulated plan benefits. If that information is available, it shall be presented as an actuarial experience gain or loss. If only the minimum disclosure is presented, presentation in a statement format will necessitate an additional unidentified other category to reconcile the initial and ultimate amounts. Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:221867ea9fffd2bcfe60504983d952b4871a10bbe739991dd827be32666a4882 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-30-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/965/30/#50-disclosure) SEC content: no #### Postretirement Benefit Obligations ##### [965-30-50-1](https://asc.understandingaccounting.org/asc/965/30/#965-30-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:40b39939dd8bfe8044c843ef22f4d778874148be3f453512de1c3bd44641b627 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Separate disclosure for each classification for each significant benefit described in paragraph [965-30-35-22](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-22) (for example, medical and death) may be appropriate. #### Postemployment Benefits ##### [965-30-50-2](https://asc.understandingaccounting.org/asc/965/30/#965-30-50-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:49fee08aa25028c6a6f5280a956c9556811f4c0aa55771474e1b4f36f4adc739 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If an obligation for postemployment [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.") is not recognized in accordance with paragraphs [965-30-25-3](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-3) and [965-30-35-9 through 35-10](https://asc.understandingaccounting.org/asc/965/30/#965-30-35-9) only because the amount cannot be reasonably estimated, the financial statements shall disclose that fact. #### Amounts Due During Plan Contract Period ##### [965-30-50-3](https://asc.understandingaccounting.org/asc/965/30/#965-30-50-3) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:b2998d0ba1f959d2e539e6ad67bf64da5aa9f7c8d552c45b126d608a28962ae9 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For negotiated plans, benefit obligations due during a plan's contract period may, but need not, be disclosed. Paragraphs [965-10-05-4 through 05-6](https://asc.understandingaccounting.org/asc/965/10/#965-10-05-4) provide a discussion of the characteristics of plans, including plans negotiated with one or more labor unions. #### Obligation for Premium Deficit ##### [965-30-50-4](https://asc.understandingaccounting.org/asc/965/30/#965-30-50-4) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:71ae4ca15157b8214b51624fbb50a1bbc4cd527a619d75d87b061a0bd112947a Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If no obligation is included for a premium deficit under insurance arrangements because any of the conditions described in paragraph [965-30-25-5](https://asc.understandingaccounting.org/asc/965/30/#965-30-25-5) are not met, or if an exposure to loss exists in excess of the amount accrued, disclosure of the premium deficit shall be made if it is reasonably possible that a loss or an additional loss has been incurred. #### Additional Financial Statement Disclosures ##### [965-30-50-5](https://asc.understandingaccounting.org/asc/965/30/#965-30-50-5) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:c65bf4561a3764a1081ec29ca4783e3d53eb6960d0be03b230dfb87144da40ad Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Disclosure of a health and welfare benefit plan's accounting policies shall include both of the following: 1. a A description of the methods and significant actuarial assumptions used to determine the plan's benefit obligations. Any significant changes in assumptions made between financial statement dates and their effects shall be described. 2. b The weighted-average assumed discount rate used to measure the plan's obligation for postemployment benefits. ##### [965-30-50-6](https://asc.understandingaccounting.org/asc/965/30/#965-30-50-6) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:0c653caf7922d741d1b66abbeb5cffdad36511e435678b8fd5336b7499e5f493 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. See paragraph [965-30-45-5](https://asc.understandingaccounting.org/asc/965/30/#965-30-45-5) for disclosure requirements of the changes in each of the three major classifications of benefit obligations if not presented in the body of the financial statements. ##### [965-30-50-7](https://asc.understandingaccounting.org/asc/965/30/#965-30-50-7) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:26.797Z to 2026-09-10T02:25:26.797Z Record version: sha256:c7c527e0ee8fe3ab8cd8c60d61749cad3933cf138b87781f401babcd917ae767 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If administrative expenses expected to be paid by the plan (but not those paid directly by the plan's participating employer\[s\]) that are associated with providing the plan's benefits are reflected by reducing the discount rate(s) used in measuring the benefit obligation, the resulting reduction in the discount rate(s) shall be disclosed. Source downloaded (UTC): 2026-09-10T02:25:30.319Z to 2026-09-10T02:25:49.530Z Record version: sha256:68899b1327ca918f658930641806741f9b5047b88de083b778aa069fbb51c5b3 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40: Plan Accounting—Health and Welfare Benefit Plans — Terminating Plans ### Machine-generated study aids ```json { "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" ] } ``` Source downloaded (UTC): 2026-09-10T02:25:30.319Z to 2026-09-10T02:25:30.319Z Record version: sha256:ae4708402c280ea8b0a93b5d2813ca424edd51639ee6344651364a4d798b484f Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40-00: 00 Status [Read section](https://asc.understandingaccounting.org/asc/965/40/#00-status) SEC content: no ##### [965-40-00-1](https://asc.understandingaccounting.org/asc/965/40/#965-40-00-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:30.319Z to 2026-09-10T02:25:30.319Z Record version: sha256:c196f74f9d79285d5c65e868993d5d9a95caedee103f31dba1e2efc1837558c2 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
LiquidationAddedAccounting Standards Update No. 2013-0704/22/2013
Terminating Plan (1st def.)AddedAccounting Standards Update No. 2014-0603/14/2014
Terminating Plan (2nd def.)SupersededAccounting Standards Update No. 2014-0603/14/2014
965-40-05-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-40-25-1AmendedAccounting Standards Update No. 2013-0704/22/2013
965-40-25-2AmendedAccounting Standards Update No. 2013-0704/22/2013
965-40-35-1AmendedAccounting Standards Update No. 2014-0603/14/2014
965-40-35-1SupersededAccounting Standards Update No. 2013-0704/22/2013
965-40-35-1AmendedAccounting Standards Update No. 2012-0410/01/2012
965-40-35-2AmendedAccounting Standards Update No. 2014-0603/14/2014
965-40-35-2AmendedAccounting Standards Update No. 2013-0704/22/2013
965-40-50-1AmendedAccounting Standards Update No. 2014-0603/14/2014
Source downloaded (UTC): 2026-09-10T02:25:34.007Z to 2026-09-10T02:25:34.007Z Record version: sha256:ce0c597618d902a794469d0d324c2fd3ecdb4a01844dbeeb5da037a40a17e2ce Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40-05: 05 Overview and Background [Read section](https://asc.understandingaccounting.org/asc/965/40/#05-overview-and-background) SEC content: no ##### [965-40-05-1](https://asc.understandingaccounting.org/asc/965/40/#965-40-05-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:34.007Z to 2026-09-10T02:25:34.007Z Record version: sha256:aaff5dbbaa9b737c00506a3cd89efb070a4eeed9bdcc808c57a1795259bec49b Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. This Subtopic provides guidance 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.") that are [terminating plans](https://asc.understandingaccounting.org/glossary/t/#terminating-plan "All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced."). Source downloaded (UTC): 2026-09-10T02:25:36.287Z to 2026-09-10T02:25:36.287Z Record version: sha256:0df116d9561305d1ed32ea2f8b719ca18fdc4ea674b963f6cfccbbf04de0061c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40-15: 15 Scope and Scope Exceptions [Read section](https://asc.understandingaccounting.org/asc/965/40/#15-scope-and-scope-exceptions) SEC content: no #### Overall Guidance ##### [965-40-15-1](https://asc.understandingaccounting.org/asc/965/40/#965-40-15-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:36.287Z to 2026-09-10T02:25:36.287Z Record version: sha256:f44da2e3049cb1f82d7add5b7a76b7b1a04d3e9373d77077906ba0a9ea7e9d66 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): 2026-09-10T02:25:42.326Z to 2026-09-10T02:25:42.326Z Record version: sha256:19cbf8515c367ab478aec682ec8897de6d221654ee3254474b9aa16a19fa1722 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40-25: 25 Recognition [Read section](https://asc.understandingaccounting.org/asc/965/40/#25-recognition) SEC content: no ##### [965-40-25-1](https://asc.understandingaccounting.org/asc/965/40/#965-40-25-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:42.326Z to 2026-09-10T02:25:42.326Z Record version: sha256:ceb7b1841a4bad7f19d51688d6a8224942b08b21cf2a7340c04a46124f5a84e2 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. If the [liquidation](https://asc.understandingaccounting.org/glossary/l/#liquidation "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.") of a plan is deemed to be imminent (as defined in paragraph [205-30-25-2](https://asc.understandingaccounting.org/asc/205/30/#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 accounting in accordance with Subtopic 205-30. ##### [965-40-25-2](https://asc.understandingaccounting.org/asc/965/40/#965-40-25-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:42.326Z to 2026-09-10T02:25:42.326Z Record version: sha256:3915ccdbf614809e843a8863037c1fc8d1826eafdccad038f3f74aa8c7767bdf Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. Plan financial statements for periods ending after the determination that liquidation is imminent are prepared using the liquidation basis of accounting. Source downloaded (UTC): 2026-09-10T02:25:45.653Z to 2026-09-10T02:25:45.653Z Record version: sha256:d835f19fb5bf400a7335614d75037190ca87628407332d9075c1cac71979f1de Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40-30: 30 Initial Measurement [Read section](https://asc.understandingaccounting.org/asc/965/40/#30-initial-measurement) SEC content: no ##### [965-40-30-1](https://asc.understandingaccounting.org/asc/965/40/#965-40-30-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:45.653Z to 2026-09-10T02:25:45.653Z Record version: sha256:b3fdcf86d9b8244ddbc3288590c0cb3e5bb22d24064155fe44966a221087fe7c Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. \[Section not used\] Source downloaded (UTC): 2026-09-10T02:25:47.719Z to 2026-09-10T02:25:47.719Z Record version: sha256:bb8eae646755d8fbf07babdfae911785265bf12c477aa00b1b6855a0e8098bf4 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40-35: 35 Subsequent Measurement [Read section](https://asc.understandingaccounting.org/asc/965/40/#35-subsequent-measurement) SEC content: no ##### [965-40-35-1](https://asc.understandingaccounting.org/asc/965/40/#965-40-35-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:47.719Z to 2026-09-10T02:25:47.719Z Record version: sha256:eebe51639b000584663236ed56808e9c657acd0f9cddbfbcccdcbb6a4ce03764 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. [Paragraph superseded by Accounting Standards Update No. 2013-07](https://asc.understandingaccounting.org/updates/asu-2013-07/). ##### [965-40-35-2](https://asc.understandingaccounting.org/asc/965/40/#965-40-35-2) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:47.719Z to 2026-09-10T02:25:47.719Z Record version: sha256:c82a2a88c9eb0ba625acfaf1a4af01553acad2b96daa4a4a9e936e3a9170cc78 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. For [terminating plans](https://asc.understandingaccounting.org/glossary/t/#terminating-plan "All plans about which a termination decision has been made regardless of whether the terminating plan will be replaced."), 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 reported for an ongoing plan. Consideration shall be given upon the determination that liquidation is imminent to whether any or all [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.") become vested. Source downloaded (UTC): 2026-09-10T02:25:49.530Z to 2026-09-10T02:25:49.530Z Record version: sha256:9e12b98eba5241f5d041b34c11482579dd98810b28a7f3c76401b3060c8dc0bc Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. ## ASC 965-40-50: 50 Disclosure [Read section](https://asc.understandingaccounting.org/asc/965/40/#50-disclosure) SEC content: no ##### [965-40-50-1](https://asc.understandingaccounting.org/asc/965/40/#965-40-50-1) Pending content: no Source downloaded (UTC): 2026-09-10T02:25:49.530Z to 2026-09-10T02:25:49.530Z Record version: sha256:0936266430da3886baa08682fd27889239614343eb4a612f9345ce04a0f581b1 Snapshot version: sha256:15aea8165dff9f5ae47d9484f8470588b13b307f56e1d50801bf4d85ec190e3f Effective as of: not established by retrieval timestamps. 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](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.") 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.