FASB ASC 960 – Plan Accounting – Define Benefit Pension Plans
FASB ASC Guide > FASB ASC 960
The Financial Accounting Standards Board (FASB) released Accounting Standards Codification 960 (ASC 960) to address topics associated with defined benefit pension plans. As those plans that meet certain requirements must be audited, this is a useful code as it contains important information when doing this.
Defined benefit pension plans are what most people when they think of a pension plan. After a certain vesting period has passed, the company will pay the employee a defined annual salary in retirement. As there are a lot of volatile assumptions made in pension plans, these need more scrutiny than a defined contribution plan would and are generally thought of as more technical and difficult to manage and audit.
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