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ASC 712 — Compensation — Nonretirement Postemployment Benefits

Below is an overview of FASB Accounting Standards Codification Topic 712, Compensation — Nonretirement Postemployment Benefits, as well as a list of FASB Accounting Standards Updates (ASUs) and proposed ASUs related to this Topic.


ASC 712-10 notes the following:


The Compensation—Nonretirement Postemployment Benefits Topic provides guidance on nonretirement postemployment benefits, including termination benefits and other postemployment benefits provided to former and inactive employees.

An employer may provide benefits to employees in connection with their termination of employment. They may be either special termination benefits offered only for a short period of time or contractual termination benefits required by the terms of a plan only if a specified event, such as a plant closing, causes employees' services to be terminated involuntarily. Termination benefits may take various forms including lump-sum payments, periodic future payments, or both. They may be paid directly from an employer's assets, an existing pension plan, a new employee benefit plan, or a combination of those means.

Other postemployment benefits include, but are not limited to, the following:

  1. Salary continuation
  2. Supplemental unemployment benefits
  3. Severance benefits
  4. Disability-related benefits (including workers' compensation)
  5. Job training and counseling
  6. Continuation of benefits such as health care benefits and life insurance coverage.

Generally, other postemployment benefits are part of the compensation provided to an employee in exchange for service.

The full text of ASC 712 can be found in the FASB Accounting Standards Codification (link to the FASB's Web site; registration required). Also, the full text of the Codification and Deloitte-authored Q&As related to the Codification are available in the Deloitte Accounting Research Tool (DART) Web site (subscription required).

Content from the FASB Accounting Standards Codification® included at is copyrighted by the Financial Accounting Foundation, 401 Merritt 7, PO Box 5116, Norwalk, CT 06856-5116, and is reproduced with permission.

FASB Accounting Standards Updates

    Proposed FASB Accounting Standards Updates

       No current proposed ASUs on Topic 712.

      Correction list for hyphenation

      These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.