fair value less costs to sell

Assets3

1. 320-965Plan Accounting—Health and Welfare Benefit Plans320 Investments—Debt Securities

   ASC 320-965 tells health and welfare benefit plans how to account for their investments in debt and equity securities. Such securities are reported at fair value less costs to sell (if significant) at the financial statement date, and purchases and sales are ordinarily recorded on a trade-date basis. Settlement-date accounting is permitted only if the fair value did not change significantly between trade date and financial statement date and the transactions do not significantly affect the composition of plan assets available for benefits.

2. 325-965Plan Accounting—Health and Welfare Benefit Plans325 Investments—Other

   ASC 325-965 (parallel to 965-325) governs how health and welfare benefit plans measure, present, and disclose their investments and insurance contracts. The core rule is that plan investments are reported at fair value less costs to sell, if significant, at the financial statement date, except that insurance contracts are presented as reported in the plan's ERISA Form 5500 filing (fair value or contract value) and fully benefit-responsive investment contracts of defined contribution plans are measured at contract value. Presentation is by general type of investment, with specified disclosures for benefit-responsive contracts and for plan interests in master trusts.

3. 360-965Plan Accounting—Health and Welfare Benefit Plans360 Property, Plant, and Equipment

   This subtopic tells health and welfare benefit plans how to measure property, plant, and equipment on the plan's financial statements. Assets used in plan operations (buildings, equipment, furniture and fixtures, leasehold improvements) are carried at cost less accumulated depreciation or amortization, while real estate and other holdings held as plan investments are reported at fair value less costs to sell, if significant, as of the financial statement date.