Capital Edge Consulting’s Anne Marie Hicks recently submitted a detailed letter to the Cost Accounting Standards Board (CASB) regarding the proposed alignment of Cost Accounting Standards (CAS) with Generally Accepted Accounting Principles (GAAP) as directed by Section 820 of the 2017 National Defense Authorization Act. The proposed changes affect five Cost Accounting Standards, focusing on Operating Revenue and Lease Accounting.
Highlights of the submission include:
Operating Revenue:
- Support for modifications to § 9904.403 to align with GAAP for revenue recognition.
- Endorsement of exemptions for properly disclosed changes from contract price adjustments.
- Simplification of compliance by removing the term “operating” in revenue references.
Lease Accounting:
- Clarification on asset classifications for Facilities Capital Cost of Money (FCCM) calculations.
- Support for aligning the definitions of tangible and intangible assets with GAAP, easing the burden of reconciliation and reclassification.
The letter underscores the benefits of these proposed rule changes, which aim to reduce administrative burdens, enhance compliance, and align CAS with GAAP more closely.
Capital Edge Government Contract Specialists are dedicated to offering valuable insights and recommendations to influence the evolution of future contracting standards. Download and read the entire letter for a comprehensive analysis of how these changes will impact the federal contracting community!
