Wiley Practitioner's Guide to GAAP 2022

40ASC 710 COMPENSATION—GENERAL

• Perspective and Issues
  • Subtopics
  • Scope and Scope Exceptions
• Definitions of Terms
• Concepts, Rules, and Examples
  • Compensated Absences
    • Vesting
    • Sick Pay
    • Other Types of Paid Time Off
  • Bonus Payments
  • Deferred Compensation Contracts
    • Example of a Deferred Compensation Contract
  • Lump-Sum Payments under Union Contracts
  • Deferred Compensation—Rabbi Trusts
  • Other Sources

PERSPECTIVE AND ISSUES

Subtopics

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 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 ...