[Federal Register Volume 85, Number 54 (Thursday, March 19, 2020)]
[Pages 15817-15818]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05737]



Office of Federal Procurement Policy

Notice on Principles and Other Matters To Guide Conformance of 
the Cost Accounting Standards to Generally Accepted Accounting 

AGENCY: Cost Accounting Standards Board, Office Federal Procurement 
Policy, Office of Management and Budget.

ACTION: Notice.


SUMMARY: The Office of Federal Procurement Policy, Cost Accounting 
Standards Board, is publishing this notice to announce the availability 
of a notice discussing the Board's responses to public comments on its 
principles, roadmap, and template to address the conformance of the 
Cost Accounting Standards (CAS) to Generally Accepted Accounting 
Principles (GAAP). The comments were received in response to a Staff 
Discussion Paper (SDP) published on March 13, 2019.

Standards Board Director (Telephone 202-395-6805).
    Availability: The full text of the notice is available on the 
Office of Management and Budget homepage at: https://www.whitehouse.gov/wp-content/uploads/2020/03/2020-03-supp-cas-gaap-gp.pdf.

SUPPLEMENTARY INFORMATION: The Office of Federal Procurement Policy 
(OFPP), Cost Accounting Standards Board (CAS Board or Board), is 
releasing a notice to discuss responses to public comments on the 
guiding principles, roadmap, and template developed by the CAS Board to 
address how it will approach the requirement in section 820 of Public 
Law 114-328 to conform CAS to Generally Accepted Accounting Principles 
(GAAP) to the maximum extent practicable. The March 2019 SDP

[[Page 15818]]

solicited views with respect to the Board's statutory requirement to 
review CAS and conform them, where practicable, to GAAP. Respondents 
were invited to comment on the following six matters: (1) The guiding 
principles proposed for evaluating the benefits and drawbacks of 
conforming CAS to GAAP; (2) a roadmap for prioritizing action and 
explanation of where action may not be beneficial; (3) a template for 
cross-walking CAS coverage to corresponding GAAP coverage; (4) whether 
revision to the CAS contract clause found at 9903.201-4, Contract 
clauses, may be necessary if requirements in the standards are 
eliminated; (5) the initial analysis of CAS 408, Accounting for Costs 
of Compensated Personal Absence, and 409, Cost Accounting Standard 
Depreciation of Tangible Capital Assets, including the Board's 
preliminary observations and specific questions for public feedback; 
and (6) where CAS may need to be modified to conform to changes to GAAP 
that occurred after a related CAS was promulgated, with an initial 
focus on lease accounting and operating revenue recognition. The notice 
being released today relates to respondents' comments on the first four 
matters enumerated above. The Board plans to address the last two items 
with separate advanced notices of proposed rulemaking.

Michael E. Wooten,
Administrator for Federal Procurement Policy, and Chairman, Cost 
Accounting Standards Board.
[FR Doc. 2020-05737 Filed 3-18-20; 8:45 am]