settlement and curtailment

Expenses2

1. 715-10Overall715 Compensation—Retirement Benefits

   ASC 715-10 is the Overall subtopic that sets the objectives and pervasive scope for employer accounting for pension, other postretirement, and certain special or contractual termination benefits. Its core premise is that a benefit plan is an exchange of deferred compensation for employee service, so the employer's obligation is incurred as services are rendered and cost is recognized over the employee service periods. Because the original content was built on an expense recognition model, most operative guidance sits in the Subsequent Measurement Sections of Subtopics 715-20, 715-30, 715-60, 715-70, and 715-80.

2. 715-30Defined Benefit Plans—Pension715 Compensation—Retirement Benefits

   ASC 715-30 governs an employer's accounting for single-employer defined benefit pension plans: it requires the employer to recognize the plan's funded status (projected benefit obligation versus fair value of plan assets) on the balance sheet and to recognize net periodic pension cost made up of service cost, interest cost, actual return on plan assets, and amortization of prior service cost/credit, net gain or loss, and any remaining transition asset or obligation. Gains, losses, and prior service cost are first recognized in other comprehensive income and amortized into net periodic pension cost over time (subject to the 10 percent corridor for net gains and losses). Separate Subsections govern settlements, curtailments, and certain termination benefits, which accelerate recognition in earnings of amounts sitting in accumulated other comprehensive income.