[Federal Register Volume 85, Number 182 (Friday, September 18, 2020)]
[Page 58399]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20572]

[[Page 58399]]



Office of Federal Procurement Policy

Conformance of the Cost Accounting Standards to Generally 
Accepted Accounting Principles for Capitalization of Tangible Assets 
and Accounting for Acquisition Costs of Material

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 Staff Discussion Paper (SDP) on conformance of the Cost Accounting 
Standards (CAS) to Generally Accepted Accounting Principles (GAAP) for 
capitalization of tangible assets and accounting for acquisition costs 
of material.

DATES: Comments must be in writing and must be received by November 17, 

ADDRESSES: Due to delays in OMB's receipt and processing of mail, 
respondents are strongly encouraged to submit comments electronically 
to ensure timely receipt. Electronic comments should be submitted to 
[email protected]. Be sure to include your name, title, organization, 
and reference case CASB 2020-01. If you must submit by regular mail, 
please do so at Office of Federal Procurement Policy, 725 17th Street 
NW, Washington, DC 20503, ATTN: Mathew Blum. Please note that all 
public comments received are subject to the Freedom of Information Act 
and will be posted in their entirety, including any personal and/or 
business confidential information provided. Do not include any 
information you would not like to be made publically available.

FOR FURTHER INFORMATION CONTACT: Mathew Blum, Cost Accounting Standards 
Board (Telephone 202-680-9579; email [email protected]).
    Availability: The full text of the SDP is available on the Office 
of Management and Budget homepage at: https://www.whitehouse.gov/omb/management/office-federal-procurement-policy/#_Office_of_Federal_5.


I. Background and Summary

    Section 820 of Public Law 114-328 directed the Board to conform CAS 
to GAAP to the maximum extent practicable. This notice announces the 
availability of a staff discussion paper addressing the potential 
conformance of CAS 404, Capitalization of Tangible Assets, and CAS 411, 
CAS Accounting for Acquisition Costs of Material, to GAAP. Issuance of 
a staff discussion paper is the first of a four-step process required 
by law (41 U.S.C. 1502(c)) prior to the establishment of any new or 
revised Cost Accounting Standard.
    On March 13, 2019, the Board issued a roadmap for public comment 
addressing the overall prioritization and specific sequencing of its 
conformance work. See 84 FR 9143. Among other things, the roadmap 
explained that the Board would give priority attention to standards 
focused primarily on cost measurement and assignment of costs to 
accounting periods, including CAS 404 and CAS 411. The majority of 
commenters recognized the benefit of focusing on those standards 
anticipated to offer the most opportunity to conform CAS to existing 
content in GAAP and generally agreed with the proposed prioritization. 
See 85 FR 15817 (March 19, 2020). The Board also found that the 
template it used for its first analysis, addressing CAS 408 and CAS 
409, was helpful in organizing public input. For these reasons, the 
Board is using the same template to cross-walk coverage of CAS 404 and 
411 with GAAP in the SDP.
    Respondents are encouraged to provide comments to the questions 
raised by the Board, although the Board also welcomes identification 
and comment on any other important issues related to conformance of the 
subject CAS to GAAP.

II. Public Comments

    Interested persons are invited to participate by providing input 
with respect to conformance of CAS to GAAP. All comments must be in 
writing and submitted as instructed in the Addresses section.

Michael E. Wooten,
Administrator for Federal Procurement Policy, and Chair, Cost 
Accounting Standards Board.
[FR Doc. 2020-20572 Filed 9-17-20; 8:45 am]