38   ASC 710 Compensation—General

Perspective and Issues


Scope and Scope Exceptions

Definitions of Terms

Concepts, Rules, and Examples

Compensated Absences

Bonus Payments

Deferred Compensation Contracts

Example of Deferred Compensation Contract



ASC 710, Compensation-General, contains one subtopic:

ASC 710-10, Overall, which is divided into two subsections:

  • General, which provides guidance on compensated absences, deferred compensation, and lump-sum payments under union contract
  • Deferred Compensation—Rabbi Trusts.

Scope and Scope Exceptions

ASC 710 applies to all entities, but as listed in 710-10-15-5, it does not apply to the following transactions:

  • Benefits paid to active employees other than compensated absences
  • Benefits paid at retirement or provided through a pension or postretirement benefit plan including special or contractual termination benefits payable upon termination from a pension or other postretirement plan are covered by Subtopics 715-30 and 715-60.
  • Individual deferred compensation contracts that are addressed by Subtopics 715-30 and 715-60, if those contracts, taken together, are equivalent to a defined benefit pension plan or a defined benefit other postretirement benefit plan, respectively.
  • Special or contractual termination benefits that are not payable from a pension or other postretirement plan are covered by Topic 712
  • Stock compensation plans that are addressed by Topic 718
  • Other postemployment benefits (see Topic ...

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