In this report, we cover the guidance related to deferred compensation arrangements. The General Subsections in FASB ASC 710-10, Compensation–General—Overall, provide guidance for employers that have deferred compensation arrangements with the following characteristics:
The arrangement is part of an individual employment contract
The arrangement is not, in substance, a pension plan or other postretirement benefit plan
The accounting for qualified deferred defined contribution compensation plans is fairly straightforward—debit compensation expense and credit cash upon contribution to the 401(k) or similar