[Federal Register Volume 77, Number 1 (Tuesday, January 3, 2012)]
[Rules and Regulations]
[Pages 202-203]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-33423]


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DEPARTMENT OF DEFENSE

GENERAL SERVICES ADMINISTRATION

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

48 CFR Parts 31 and 52

[FAC 2005-55; FAR Case 2010-005; Item VI; Docket 2010-0005, Sequence 1]
RIN 9000-AM00


Federal Acquisition Regulation; Updated Financial Accounting 
Standards Board Accounting References

AGENCIES: Department of Defense (DoD), General Services Administration 
(GSA), and National Aeronautics and Space Administration (NASA).

ACTION: Final rule.

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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the 
Federal Acquisition Regulation (FAR) to update references to 
authoritative accounting standards owing to the Financial Accounting 
Standards Board's Accounting Standards Codification of Generally 
Accepted Accounting Principles.

DATES: Effective Date: February 2, 2012.

FOR FURTHER INFORMATION CONTACT: Mr. Edward N. Chambers, Procurement 
Analyst, at (202) 501-3221, for clarification of content. For 
information pertaining to status or publication schedules, contact the 
Regulatory Secretariat at (202) 501-4755. Please cite FAC 2005-55, FAR 
Case 2010-005.

SUPPLEMENTARY INFORMATION: 

I. Background

    DoD, GSA, and NASA published a proposed rule in the Federal 
Register at 76 FR 8989 on February 16, 2011, to update the references 
based upon the Financial Accounting Standards Board's (FASB) Statement 
Number 168 which stated that the FASB Accounting Standards Codification 
(ASC) would become the source of authoritative U.S. Generally Accepted 
Accounting Principles (GAAP) recognized by the FASB to be applied to 
nongovernmental entities. The revisions are intended to have no effect 
other than to simply replace the superseded references with

[[Page 203]]

updated references. The Regulatory Secretariat received one response to 
the proposed rule.

II. Discussion and Analysis

    The Civilian Agency Acquisition Council and the Defense Acquisition 
Regulations Council reviewed the public comment in the development of 
the final rule. A discussion of the comment follows:

Executive Compensation Reporting

    Comment: The respondent inquired if the executive compensation 
reporting language applied to private companies that through the normal 
course of business have no interest in disclosing this information to 
the public/Government.
    Response: This comment is outside the scope of this case, which was 
limited to simply replacing superseded FAR references with updated 
references. FAR 4.1403 delineates which Government contracts require 
the reporting of executive compensation (FAR clause 52.204-10).

III. Executive Orders 12866 and 13563

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
This is not a significant regulatory action and, therefore, was not 
subject to review under section 6(b) of E.O. 12866, Regulatory Planning 
and Review, dated September 30, 1993. This rule is not a major rule 
under 5 U.S.C. 804.

IV. Regulatory Flexibility Act

    The Department of Defense, the General Services Administration, and 
the National Aeronautics and Space Administration certify that this 
final rule will not have a significant economic impact on a substantial 
number of small entities within the meaning of the Regulatory 
Flexibility Act, 5 U.S.C. 601, et seq., because the rule makes 
administrative changes only by merely updating references to 
authoritative accounting standards owing to the Financial Accounting 
Standard Board's Accounting Standards Codification of Generally 
Accepted Accounting Principles.

V. Paperwork Reduction Act

    The final rule does not contain any information collection 
requirements that require the approval of the Office of Management and 
Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).

List of Subjects in 48 CFR Parts 31 and 52

    Government procurement.

    Dated: December 21, 2011.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of 
Acquisition Policy, Office of Governmentwide Policy.
    Therefore, DoD, GSA, and NASA amend 48 CFR parts 31 and 52 as set 
forth below:

0
1. The authority citation for 48 CFR parts 31 and 52 continues to read 
as follows:

    Authority:  40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42 
U.S.C. 2473(c).

PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES

0
2. Amend section 31.205-11 by revising the introductory text of 
paragraph (h) to read as follows:


31.205-11  Depreciation.

* * * * *
    (h) A ``capital lease,'' as defined in Financial Accounting 
Standards Board's Accounting Standards Codification (FASB ASC) 840, 
Leases, is subject to the requirements of this cost principle. (See 
31.205-36 for Operating Leases.) FASB ASC 840 requires that capital 
leases be treated as purchased assets, i.e., be capitalized, and the 
capitalized value of such assets be distributed over their useful lives 
as depreciation charges or over the leased life as amortization 
charges, as appropriate, except that--
* * * * *

0
3. Amend section 31.205-36 by revising paragraph (a) to read as 
follows:


31.205-36  Rental costs.

    (a) This subsection is applicable to the cost of renting or leasing 
real or personal property acquired under ``operating leases'' as 
defined in Financial Accounting Standards Board's Accounting Standards 
Codification (FASB ASC) 840, Leases. (See 31.205-11 for Capital 
Leases.)
* * * * *

PART 52--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
4. Amend section 52.204-10 by revising the date of the clause, and in 
paragraph (a), in the definition ``Total compensation'', revising 
paragraph (2) to read as follows:


52.204-10  Reporting Executive Compensation and First-Tier Subcontract 
Awards.

* * * * *

Reporting Executive Compensation and First-Tier Subcontract Awards (FEB 
2012)

* * * * *
    Total compensation * * *
    (2) Awards of stock, stock options, and stock appreciation 
rights. Use the dollar amount recognized for financial statement 
reporting purposes with respect to the fiscal year in accordance 
with the Financial Accounting Standards Board's Accounting Standards 
Codification (FASB ASC) 718, Compensation-Stock Compensation.
* * * * *

0
5. Amend section 52.212-5 by revising the date of the clause and 
paragraph (b)(4) to read as follows:


52.212-5  Contract Terms and Conditions Required To Implement Statutes 
or Executive Orders--Commercial Items.

* * * * *

Contract Terms and Conditions Required To Implement Statutes or 
Executive Orders--Commercial Items (FEB 2012)

* * * * *
    (b) * * *
    (4) 52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards (Feb 2012) (Pub. L. 109-282) (31 U.S.C. 6101 
note).
* * * * *

0
6. Amend section 52.213-4 by revising the date of the clause and 
paragraph (a)(2)(i) to read as follows:


52.213-4  Terms and Conditions--Simplified Acquisitions (Other Than 
Commercial Items).

* * * * *

Terms and Conditions--Simplified Acquisitions (Other Than Commercial 
Items) (FEB 2012)

    (a) * * *
    (2) * * *
    (i) 52.204-10, Reporting Executive Compensation and First-Tier 
Subcontract Awards (FEB 2012)
    (Pub. L. 109-282) (31 U.S.C. 6101 note).
* * * * *
[FR Doc. 2011-33423 Filed 12-30-11; 8:45 am]
BILLING CODE 6820-EP-P