Authoritative Accounting and Reporting Standards
For Employee Benefit Plans:
FASB Accounting Standards CodificationTM
The EBPAQC has prepared this document to provide a general understanding of the source of
authoritative accounting and reporting standards for employee benefit plans under the FASB Accounting
Standards Codification™ (FASB ASC). The document explains how the FASB ASC is organized, how to
reference and use the FASB ASC for employee benefit plan accounting and reporting, how the FASB ASC
relates to previously issued standards, and how new authoritative accounting and reporting standards
will be issued under the FASB ASC. This document also includes a cross reference listing of the more
frequently referenced FASB and AICPA accounting pronouncements for employee benefit plans to the
FASB ASC.
About the FASB Accounting Standards CodificationTM
The FASB ASC is the sole source of authoritative generally accepted accounting principles (GAAP) in the
United States for nongovernmental entities, including employee benefit plans (in addition to applicable
guidance issued by the Securities and Exchange Commission (SEC) for employee benefit plans that file
Form 11-K with the SEC). The FASB ASC is a major restructuring of accounting and reporting standards
and provides the authoritative accounting and reporting standards in a topically organized structure.
The FASB ASC became effective for financial statements issued for interim and annual periods ending
after September 15, 2009. (Employee benefit plans with fiscal years ending September 30, 2009 and
later will need to use and refer to the FASB ASC in their financial statements.) The FASB ASC is available,
after registering online, at http://asc.fasb.org/home and includes a brief overview, tutorial, and cross
reference tool. Additionally, the FASB ASC web site has a FASB Accounting Standards Codification™
Notice to Constituents that explains the scope, structure, and ongoing standards-setting process of the
FASB ASC.
Authoritative Accounting and Reporting Standards under U.S. Generally
Accepted Accounting Principles (GAAP)
The FASB ASC establishes a GAAP hierarchy in two levels: an authoritative GAAP level (accounting and
reporting requirements included in the FASB ASC) and a non-authoritative level (accounting and
reporting requirements not included in the FASB ASC). Previous accounting standards and guidance
classified as levels A through C under the old U.S. GAAP hierarchy in Statement on Financial Accounting
Standards (SFAS) No. 162, as well as the AICPA Technical Inquiry Section (TIS) section 5100 on software
revenue recognition (formerly part of level D GAAP), are incorporated into the FASB ASC. FASB ASC
supersedes existing FASB, AICPA, EITF, and related literature. Previous level D GAAP guidance, except
for guidance noted above, and all previous level E GAAP are considered non-authoritative and are not
included in the FASB ASC. Examples of sources of non-authoritative guidance and literature include
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FASB Concepts Statements, pronouncements of professional organizations (i.e., AICPA Issues Papers and
Technical Practice Aids) and regulatory agencies (i.e., U.S. Department of Labor (DOL) reporting
regulations), and practices that are widely prevalent either generally or in the employee benefit plans
industry. Proposed changes to the FASB ASC (via FASB ASC Updates) will not be considered authoritative
until approved by the FASB and, therefore, are not included in the FASB ASC (see the How New
Standards Will Be Issued Under the FASB ASC section below for further discussion of FASB ASC Updates).
The FASB ASC also includes references to selected SEC guidance where applicable and is included for
reference only. (SEC guidance is relevant to employee benefit plans that file a Form 11-K with the SEC.)
Preparers and auditors of SEC Form 11-K filers should refer to the SEC rules and regulations for the most
current guidance.
The AICPA Audit and Accounting Guide, Employee Benefit Plans (the Guide) includes comprehensive
descriptions of and references to authoritative FASB guidance applicable to employee benefit plans and
also includes non-authoritative guidance presenting the AICPA Employee Benefit Plans Expert Panel’s
recommendations on and descriptions of financial accounting and reporting principles and practices for
employee benefit plans. SFAS No. 168 states if the guidance for a transaction or event is not specified
within a source of authoritative GAAP for that entity, then an entity shall first consider accounting
principles for similar transactions or events within a source of authoritative GAAP for that entity and
then consider non-authoritative guidance from other sources (the Guide included). An entity shall not
follow the accounting treatment specified in accounting guidance for similar transactions or events in
cases in which those accounting principles either prohibit the application of the accounting treatment to
the particular transaction or event or indicate that the accounting treatment shall not be applied by
analogy. The Guide is available at the AICPA Store (cpa2biz.com).
Organization of the FASB ASC
The FASB ASC is organized by topic, subtopic, section, subsection and paragraph. FASB ASC topics are
organized as follows:
100s – General Principles
200s – Presentation
300s – Assets
400s – Liabilities
500s – Equity
600s – Revenue
700s – Expenses
800s – Broad transactions (such as fair value measurements, related party transactions,
subsequent events)
900s – Industries (which includes Plan Accounting)
The content under each general FASB ASC topic (100s through 800s) includes only information related to
that FASB ASC topic. For example, content included in the financial statement presentation FASB ASC
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topic will include only information related to presentation matters and would not address recognition,
measurement and de-recognition matters.
The “Industries” FASB ASC topic (900s) includes industry specific guidance — Including related financial
statement presentation and disclosure requirements — for situations where specialized accounting and
reporting applies. Any authoritative guidance that specifically relates to an industry will be included in
that industry FASB ASC topic.
Specialized Employee Benefit Plan Accounting and Reporting Standards
Specialized accounting and reporting guidance for employee benefit plans is included in the FASB ASC
900s topic. FASB ASC 960 addresses defined benefit pension plan accounting and reporting; FASB ASC
962 addresses defined contribution pension plan accounting and reporting, and FASB ASC 965 addresses
health and welfare benefit plan accounting and reporting. Employee benefit plan FASB ASC topics are
further broken down into the following subtopics:
FASB ASC 960 – Defined Benefit Pension Plans
o 10 – Overall
o 20 – Accumulated Plan Benefits
o 30 – Net Assets Available for Plan Benefits
o 40 – Terminating Plans
o 205 – Presentation of Financial Statements
o 310 – Receivables
o 325 – Investments – Other
o 360 – Property, Plant, and Equipment
FASB ASC 962 – Defined Contribution Pension Plans
o 10 – Overall
o 40 – Terminating Plans
o 205 – Presentation of Financial Statements
o 235 – Notes to Financial Statements
o 310 – Receivables
o 325 – Investments – Other
FASB ASC 965 – Health and Welfare Benefit Plans
o 10 – Overall
o 20 – Net Assets Available for Plan Benefits
o 30 – Plan Benefit Obligations
o 40 – Terminating Plans
o 205 – Presentation of Financial Statements
o 310 – Receivables
o 320 – Investments – Debt and Equity Securities
o 325 – Investments – Other
o 360 – Property, Plant, and Equipment
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While the FASB ASC includes specialized industry accounting and reporting standards in the industry
topic area, preparers and auditors also need to refer to applicable general accounting and reporting
standards in the general FASB ASC topics. For example, specialized guidance on reporting stable value
funds for a defined contribution pension plan is found under FASB ASC 962 (Defined Contribution
Pension Plans) subtopic 325 (Investments — Other). Additional general guidance on fair value
measurements related to stable value funds is found under the broad transaction topic FASB ASC 820
(Fair Value Measurements and Disclosures) as employee benefit plans follow the same general reporting
and disclosure guidance for fair value measurement of investments as other entities.
FASB ASC Codifies Previously Issued Authoritative FASB and AICPA Standards
The FASB ASC incorporates previously issued FASB and AICPA accounting standards as applicable. FASB
Statements of Accounting Standards, AICPA Statements of Position and other previously issued
authoritative accounting standards and guidance are no longer stand-alone documents; rather their
contents are codified throughout applicable topics in the FASB ASC. As such, guidance from one previous
FASB or AICPA standard may appear in multiple sections of the FASB ASC. For example, the guidance
originally issued as SOP 94-4, Reporting of Investment Contracts Held by Health and Welfare Benefit
Plans and Defined-Contribution Pension Plans, is now located in FASB ASC topics 962 (Defined
Contribution Pension Plans) and 965 (Health and Welfare Benefit Plans). The guidance is not only
located under multiple FASB ASC topics , but it appears in several places within each topic (for example,
the information within topic 962 that came from SOP 94-4 is located under various subtopics, sections,
and paragraphs within topic 962.) (See the Cross Referencing to Previously Issued Standards section
below for an illustration of where guidance originally issued as SOP 94-4 is located in the FASB ASC.)
This classification makes it easier for the user to find the relevant detail information. For instance, if the
user is interested only in the required disclosures for fully benefit-responsive investment contracts in a
defined contribution pension plan, he or she can go directly to the appropriate section (FASB ASC 962325-50), where in the past the user would need to review the entire standard (SOP 94-4) to find the
relevant information.
Cross Referencing to Previously Issued Standards
A cross reference tool to assist you in finding where previously issued guidance is located in the FASB
ASC is available on the FASB ASC website. The tool allows you to enter the former standard type and
number (for example, SOP 94-4), then creates a matrix that shows where that information is located
under the FASB ASC. Users should note the cross reference tool uses an “as-of” approach and does not
show standards that solely amended other standards. For example, SFAS No. 139 was a rescission of
SFAS No. 53 and amendments to SFAS Nos. 63, 89 and 121. To use the cross reference tool for SFAS No.
139, you would need to go to the standards it amended to find it in the FASB ASC. Below is a screen shot
of what you would see when performing a search of SOP 94-4 on the FASB ASC Website.
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Referencing to the FASB ASC
Preparers and auditors should include references to applicable sections of the FASB ASC in their
documentation of policies and procedures, technical memorandums, financial statements and filings,
and engagement working papers since the underlying financial statements will now reference the FASB
ASC. The FASB encourages the use of “plain English” describing broad accounting topics in the financial
statements. For example, when discussing the principles of fair value measurements and the
corresponding levels assigned to plan investments in the financial statement disclosures, it is suggested
to include the following reference, “as required by the Fair Value Measurements and Disclosures Topic
of the FASB Accounting Standards Codification.” The FASB also recommends establishing a consistent
referencing approach for items such as working papers, articles, textbooks, and other similar items, such
as an approach described below.
FASB ASC references begin with “FASB ASC” followed by the topic number and, if applicable, the
subtopic, section, sub-section, and paragraph numbers. A general reference to guidance previously
included in a FASB standard (for example, FAS 157 Fair Value Measurements) would cite the applicable
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FASB ASC (for example, FASB ASC 820 Fair Value Measurements and Disclosures). The following are
some examples of referencing the FASB ASC.
FASB ASC 820 Fair Value Measurements and Disclosures – A broad reference to the entire
topic on fair value measurements and disclosures.
FASB ASC 820-10-50 – A specific reference to the disclosure requirements in FASB ASC 820
(topic – Fair Value Measurements and Disclosures, subtopic – Overall, section – Disclosure)
FASB ASC 820-10-50-8 – A specific reference to how the fair value information should be
presented in the disclosures (topic – Fair Value Measurements and Disclosures, subtopic –
Overall, section – Disclosure, paragraph – Tabular Format Required)
How New Standards Will Be Issued Under the FASB ASC
Future changes to accounting and reporting standards will be issued by the FASB as Accounting
Standards Updates (ASU) that will be included in the FASB ASC (FASB will no longer issue SFASs, EITFs,
etc.) These updates will be sequentially numbered within each calendar year. Each update will include
a summary and basis for conclusion and Codification update instructions.
The ASUs will be included in the “What’s New in FASB ASC” section of the FASB ASC Website and the
FASB ASC content will be simultaneously updated with the issuance of the new ASU. Each FASB ASC
subtopic revised will include a table at the beginning of the FASB ASC subtopic outlining all the FASB ASC
sections revised by the new update. At the appropriate FASB ASC section/paragraph references, the
revisions will be noted as “Pending Content” in a box with the transition date (effective date) of the new
standard. For example, ASU No. 2009-12, Fair Value Measurements and Disclosures, Topic 820,
Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) revised FASB
ASC 820, Fair Value Measurements and Disclosures (formerly SFAS No. 157); thus, at the beginning of
FASB ASC 820-10 (the “Overall” subtopic), a table is included listing the section and paragraph
references where the information is either amended or added.
Cross Reference of Original Authoritative Guidance to the FASB ASC
Note: The following information is excerpted from Appendix C of the AICPA Audit and Accounting Guide,
Employee Benefit Plans, with conforming changes as of March 1, 2009.
Cross Reference of FASB and AICPA Accounting Pronouncements to the FASB Accounting Standards
Codification™ (ASC)
Financial Accounting Standards Board Accounting Standards Codification™ (FASB ASC) has disassembled
and reassembled thousands of accounting pronouncements (including those of FASB, the Emerging
Issues Task Force, and the AICPA) to organize them under approximately 90 topics. Most codified
accounting pronouncements were codified into numerous topics; the following list includes the most
prevalent and relevant topic(s) discussed in this guide and the specific accounting pronouncement to
which it was codified. It is important to remember that the accounting guidance in each of the industry
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specific topics (in this case 960, 962, & 965) only explain the industry specific guidance—for guidance on
a topic as it would relate to all entities, consult the appropriate topic in the Codification (for example,
receivables). As stated in the FASB ASC Notice to Constituents, "these topics [industries] relate to
accounting that is unique to an industry or type of activity."
This table provides a cross reference listing of the more frequently referenced FASB and AICPA
accounting pronouncements to the FASB ASC.
Pronouncement Reference
FASB
ASC
Reference
Name
Name
FASB Statements
FASB 5
Accounting for Contingencies
450
Contingencies
FASB 35
Accounting and Reporting by
Defined Pension Benefit Plans
Statement of Cash Flows—
Exemption of Certain
Enterprises and Classification
of Cash Flows from Certain
Securities Acquired for Resale—
an amendment of FASB
Statement No. 95
Employers’ Accounting for
Postretirement Benefits Other
Than Pensions
Employers’ Accounting for
Postemployment Benefits—an
amendment of FASB Statements
No. 5 and 43
Accounting for Derivative
Instruments and Hedging
Activities
Accounting for Transfers and
Servicing of Financial Assets
and Extinguishments of
Liabilities—a replacement of
FASB Statement No. 125
Accounting for the Impairment
or Disposal of Long-Lived
Assets
Accounting Changes and Error
Corrections—a replacement of
APB Opinion No. 20 and FASB
Statement No. 3
Fair Value Measurements
960
Defined Benefit
Pension Plans
Statement of Cash
Flows
FASB 102
FASB 106
FASB 112
FASB 133
FASB 140
FASB 144
FASB 154
FASB 157
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230
715
Compensation—
Retirement Benefits
712
Compensation—
Nonretirement
Postemployment
Benefits
Derivatives and
Hedging
815
860
Transfers and Servicing
360
Property, Plant, and
Equipment
250
Accounting Changes
and Error Corrections
820
Fair Value
Measurements and
Disclosures
FASB 159
AICPA Statements of Position
(SOPs)
SOP 92-6 (as amended by SOP
01-2)
SOP 94-4 (as amended by
FASB Staff Position AAG INV1 and SOP 94-4-1)
SOP 94-6
SOP 99-2
SOP 99-3
Accounting Principles Board
(APB) Opinions
APB Opinion No. 22
The Fair Value Option for
Financial Assets and Financial
Liabilities—Including an
amendment of FASB Statement
No. 115
825
Financial Instruments
Accounting and Reporting by
Health and Welfare Benefit
Plans
Reporting of Investment
Contracts Held by Health and
Welfare Benefit Plans and
Defined-Contribution Pension
Plans
965
Health and Welfare
Benefit Plans
962
Defined Contribution
Pension Plans
965
Health and Welfare
Benefit Plans
Risks and Uncertainties
Disclosure of Certain
Significant Risks and
Uncertainties
Accounting for and Reporting of
Postretirement Medical Benefit
(401(h)) Features of Defined
Benefit Pension Plans
Accounting for and Reporting of
Certain Defined Contribution
Plan Investments and Other
Disclosure Matters
275
960
Defined Benefit
Pension Plans
965
Health and Welfare
Benefit Plans
Defined Contribution
Pension Plans
962
965
Health and Welfare
Benefit Plans
Disclosure of Accounting
Policies
235
Notes to Financial
Statements
Accounting for Uncertainty in
Income Taxes—an
interpretation of FASB
Statement No. 109
740
Income Taxes
FASB Interpretation (FIN)
FIN 48
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