📊Proposed Changes to Cost Accounting Standards Impacting Businesses
Conformance of the Cost Accounting Standards to Generally Accepted Accounting Principles for CAS 404 Capitalization of Tangible Assets and CAS 411 Accounting for Acquisition Costs of Material
Summary
The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards Board (CAS Board or the Board), is releasing this advanced notice of proposed rulemaking (ANPRM) to elicit public comments on proposed changes to the Cost Accounting Standards (CAS) on conformance to Generally Accepted Accounting Principles (GAAP) related to CAS 404, Capitalization of Tangible Assets, and CAS 411, Accounting for Acquisition Costs of Material, to GAAP. This ANPRM follows issuance of a Staff Discussion Paper 85 FR 58399 (September 18, 2020).
Agencies
- Federal Procurement Policy Office
- Management and Budget Office
Business Impact
$$ - Med
This regulatory text proposes changes to the Cost Accounting Standards (CAS) to align with Generally Accepted Accounting Principles (GAAP), significantly impacting businesses by potentially reducing compliance burdens and changing cost allocation methods. Businesses engaging in government contracts need to adapt to these regulatory changes by March 2025.