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13.4 Defined contribution plans
Publication date: 31 Mar 2024
us Financial statement presentation guide
A defined contribution plan is a plan that provides an individual account for each participant, and specifies how contributions to the individual's account are to be determined instead of specifying the amount of benefit the individual is to receive.
13.4.1 General disclosure
As discussed in ASC 715-70-50-1, a reporting entity that sponsors one or more defined contribution plans should disclose the amount of cost recognized for these plan separate from its defined benefit plans. The disclosures should include a description of the nature and effect of any significant changes during the period affecting comparability, such as a change in the rate of reporting entity contributions, a business combination, or a divestiture.
13.4.2 Hybrid plans
Some plans contain features of both defined contribution and defined benefit plans. Some examples include cash balance plans and floor-offset plans. If, in substance, the plan provides a defined benefit, the accounting and disclosures should follow the requirements for a defined benefit plan.
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