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Type of benefit
| Applicable guidance
| Description of benefits in scope
| Timing of liability/expense recognition
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Special termination benefits
| Benefits offered by the employer for a short period of time in exchange for an employee's voluntary termination.
| When an employee irrevocably accepts the offer and the amount can be reasonably estimated.
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Contractual termination benefits
| Benefits required by the terms of an existing plan or agreement (or through an enhancement to an ongoing benefit arrangement) only upon the occurrence of a specified event (e.g., a plant closing) that causes employees’ services to be terminated involuntarily
| When it is probable the employees will be entitled to benefits (i.e., when it is probable that the specified event will occur) and the amount can be reasonably estimated
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Other postemployment benefits
| Benefits provided in accordance with a mutually understood benefit arrangement between the employer and the employee or former employee
A mutually understood benefit arrangement could be achieved through either a written plan or through a consistent past practice that would constitute a "substantive plan"
| When the existing situation or set of circumstances indicates that an obligation has been incurred, it is probable the benefits will be paid, and the amount can be reasonably estimated.
For benefits that vest or accumulate:
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One-time termination benefits
| One-time involuntary termination benefits that are not provided under the terms of an ongoing benefit arrangement or enhancements to an ongoing benefit arrangement that would be applicable for future events
| When the conditions specified in ASC 420 have been met, including management’s commitment to a plan and communication to employees
Expense is recognized immediately if future services are not required, or ratably over the period of required future service
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