full eligibility date

Expenses2

1. 710-10Overall710 Compensation—General

   ASC 710-10 is the catch-all compensation subtopic for arrangements outside pensions/OPEB (715), postemployment benefits (712), and stock compensation (718). Its General Subsections require accrual of a liability for compensated absences when four conditions are met (services already rendered, rights vest or accumulate, payment probable, amount reasonably estimable), prescribe accrual of individual deferred compensation contracts over the service period to the full eligibility date at present value, and limit deferral of union-contract lump-sum payments. The Deferred Compensation—Rabbi Trusts Subsections classify trust-held employer stock as treasury stock and classify the deferred compensation obligation as equity or a liability depending on the plan's settlement and diversification features (Plans A–D).

2. 715-60Defined Benefit Plans—Other Postretirement715 Compensation—Retirement Benefits

   ASC 715-60 governs an employer's accounting for single-employer defined benefit postretirement benefit plans other than pensions (OPEB)—chiefly retiree health care, but also retiree life insurance, tuition, day care, legal services and housing subsidies. The employer must recognize the funded status of each plan (fair value of plan assets less the accumulated postretirement benefit obligation) on the balance sheet, attribute the expected postretirement benefit obligation ratably over an attribution period ending at the full eligibility date, and recognize net periodic postretirement benefit cost with delayed recognition of prior service cost, gains/losses, and any transition obligation through other comprehensive income. Separate Subsections address the Medicare Part D subsidy, settlements/curtailments/termination benefits, and split-dollar life insurance arrangements.