[Federal Register Volume 70, Number 125 (Thursday, June 30, 2005)]
[Rules and Regulations]
[Page 37706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-12857]


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OFFICE OF MANAGEMENT AND BUDGET

Office of Federal Procurement Policy

48 CFR Part 9904


Capitalization of Tangible Assets; Correction

AGENCY: Cost Accounting Standards Board; Office of Federal Procurement 
Policy, OMB.

ACTION: Correction to final rule.

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SUMMARY: This document contains technical corrections to the 
Illustrations in CAS 9904.404, ``Capitalization of Tangible Assets.'' 
An amendment to this Standard was published on February 13, 1996 (61 FR 
5520). However, while the contractor's minimum cost criteria for 
capitalization was increased from $1,500 to $5,000 in the body of the 
Standard, this change was not reflected in the Illustrations part of 
the Standard. This technical correction brings the figures in the 
relevant Illustrations into line with the $5,000 minimum cost criteria 
for capitalization currently incorporated in the body of the Standard.

DATES: This rule is effective June 30, 2005.

FOR FURTHER INFORMATION CONTACT: Rein Abel, Director of Research Cost 
Accounting Standards Board (telephone 202-395-3254).

SUPPLEMENTARY INFORMATION: When the Standard was amended in February 
1996 (61 FR 5520) only the fundamental requirement at 9904-40 (b)(1) 
was changed to reflect the increase in the capitalization criteria from 
$1,500 to $5,000. However, corresponding changes were not made to the 
Illustrations in the Standard. This document makes the necessary 
technical corrections to Illustrations at 9904-60.

List of Subjects in 48 CFR 9904

    Government procurement, Cost accounting standards.


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Accordingly, for the reasons set forth above, it is proposed to correct 
48 CFR part 9904 as follows:

PART 9904--COST ACCOUNTING STANDARDS

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1. Authority. The authority citation for part 9904 continues to read as 
follows:

    Authority: Public Law 100-679 Stat. 4056, 41 U.S.C. 422.


9904.404-60  [Corrected]

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2. In 9904.404-60 (a) (1), first sentence, remove ``$2,000'' and insert 
``$6,000'' in its place; and in the second sentence remove ``$1,500'' 
and insert ``$5,000'' in its place; and in paragraph (a) (1) (i) revise 
the first sentence to read as follows: ``Contractor acquires a tangible 
capital asset with a life of 18 months at a cost of $6,500.''

David H. Safavian,
Chair, Cost Accounting Standards Board.
[FR Doc. 05-12857 Filed 6-29-05; 8:45 am]
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