Title 48 – FEDERAL ACQUISITION REGULATIONS SYSTEM Chapter 99 – COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL Subchapter B. 48 CFR, Pt TITLE FEDERAL ACQUISITION REGULATIONS SYSTEM AND COST ACCOUNTING STANDARDS PART COST ACCOUNTING. interpretations indicated thereto contained in 48 CFR , in effect on the date of award of this subcontract or, if the Seller has submitted cost or pricing data.
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They shall be allocated to the segment for which the expenses were incurred on the basis of the beneficial or causal relationship between the expenses incurred and all benefiting or causing segments. This term includes both direct assignments of cost and the reassignment of a share from an indirect cost pool.
FAR – Appendix Cost Accounting Preambles and Regulations*
Cost Accounting Standards promulgated by the Board shall be mandatory for use by all executive agencies and by contractors and subcontractors in estimating, accumulating, and reporting costs in connection with pricing and administration of, and settlement of disputes concerning, all negotiated prime contract and subcontract procurements with the United States Government in excess of the Truth in Negotiations Act TINA threshold, as 99004 for inflation 41 U.
The contractor assigns depreciation costs to cost accounting periods using the straight line method. This term includes both direct assignment of cost and the reassignment of a share from an indirect cost pool. Also, in any example, a company’s individual circumstances 9094 be considered in order to take into account possible biased results because of changes in organizations, products, acquisition policies, economic factors, etc. Each item in the sample would be compared to the subsequent year’s inventory to determine if the asset is still in service; if not, then the asset had ccfr retired in the year from which the sample was drawn.
The data which are required to be disclosed by educational institutions are set forth in detail in the Disclosure Statement Form, CASB DS—2, which is illustrated below:. The estimated service life of a cfd capital asset or group of assets is a current forecast xfr its service life and is the period over which depreciation cost is to be assigned. Any such types of payments or accruals which cannot be identified specifically with individual segments shall be allocated to benefitted segments using an allocation base representative of the factors on which the total payment is based.
Insert the following subparagraph 5 at the end of Part I of the basic clause:. In essence, it clarifies whether restructuring costs are to be treated as an expense of the current period or as a deferred charge that is subsequently amortized over future periods.
48 CFR Part 9904 – COST ACCOUNTING STANDARDS
However, this provision shall not preclude revisions to an allocation rate during a cost accounting period based on revised estimates of period totals. Since Contractor A sets his cdr standard in accordance with his cf practice, he complies with provisions of If more than one segment is managed or supervised, the expense shall be allocated using a base or bases representative of the total activity of such segments.
Internal agency policies and procedures shall provide for the designation of the agency office s or officials responsible for administering CAS under the agency’s CAS-covered contracts at each contractor business unit and the delegation of necessary contracting authority to agency individuals authorized to administer the terms and conditions cfrr CAS-covered contracts, e. Prior to making any contract price or cost adjustment s under the provisions of paragraph a 5 of the contract clause set forth in Home office expense or function.
He then considers technological changes and likely use. The estimated service life is 10 years for the lathe.
The gain or loss for each asset disposed of is the difference between the net amount realized, including insurance proceeds in the event of involuntary conversion, and its undepreciated balance. If Unit C chooses to use the transition method in The burden shall be on the contractor to justify estimated service lives which are shorter than such experienced lives.
Other terms elsewhere in this chapter 99 shall have the meanings ascribed to them in those definitions unless paragraph b of this subsection, requires otherwise. The contractor computed pension costs using the aggregate cost method. The use of alternative forms has been approved for the contractors of the following countries:. Prior to making any equitable adjustment under the provisions of paragraph a 4 i of the contract clause set forth in The item is then traced to prior year inventories to determine the year in which acquired.
Where either the declining balance method of depreciation or the class life asset depreciation range system is used consistent with the provisions of this Standard, the residual value need not be deducted from capitalized cost to determine depreciable costs.
Currently performing, as used in this 99004, means that 84 contractor has been awarded a contract, 904 has not yet received notification of final acceptance of all supplies, services, and data deliverable under the contract including options.
This may be the case, for example, if a segment relies heavily on the home office for certain residual functions normally performed by other segments on their own. A change in the contractor’s cost accounting period is a change in accounting practices for which an adjustment in the contract price may be required in accordance with paragraph a 4 ii or iii of the cft clause set out at For a CAS-covered contract to be awarded during the period January 1,through June 30,the awarding agency may waive the preaward Disclosure Statement submission requirement specified in Negotiated contracts not exempt in accordance with The determination required by this paragraph for the 1st year the contractor is subject to this Standard shall be based on the pro forma application of this Standard to the home office expenses and aggregate operating revenue for the contractor’s previous fiscal year.
The allocation of centralized service functions shall be governed by a hierarchy of preferable allocation techniques which represent beneficial or causal relationships. Rules, regulations, cost accounting standards, and modifications thereof promulgated or amended by the Board shall be accompanied by prefatory comments and by illustrations, if necessary.
In determining whether amounts of cost are material or immaterial, the following criteria shall be considered where appropriate; no one criterion is necessarily cvr. Under the Standard the depreciable cost of the asset based on that value may be accounted for over its estimated service life and allocated to cost objectives in accordance with contractor’s cost allocation practices.
However, if he would maintain several purchased-items inventory accounts, each representing a homogeneous grouping ffr material, and maintain a cf variance account for each of these homogeneous groupings of material, Contractor D’s practice would comply with A vacancy on the Board shall be filled in the 84 manner in which the original appointment was made.
Contractor accounts for manufacturing overhead by individual items of cost which are accumulated in a cost pool allocated to final cost objectives on a direct labor base.
CAS-covered contract, as used in this part, means any negotiated contract or subcontract in which a CAS clause is required to be included. Further, the exemption applies only in connection with proposals submitted before expiration of the day period following the cost accounting period in which the monetary exemption was exceeded.
Company D has no liability for vacation pay at January 1 or at December The offeror further certifies that if an award resulting from this proposal has not been made within 90 days after the end of that period, the offeror will immediately submit a revised certificate to the Contracting Officer, in the form specified under subparagraph c 1 or c 2 of Part I of this provision, as appropriate, to verify submission of a completed Disclosure Statement.
He shall, within 30 days of having done so, submit a report to the Cost Accounting Standards Board setting forth all material facts. This Standard does not cover nonwasting assets or natural resources which are subject to depletion.
Implementation dates for contractors and subcontractors shall be determined by the Board, but in no event shall such dates be later than the beginning of the second fiscal year of affected contractors or subcontractors after the standard becomes effective.
Where such gain or loss is not material, the amount may be included in an appropriate indirect cost pool. A separate material-cost variance shall be accumulated for each production unit. A capitalization policy in accordance with this Standard will facilitate measurement of costs consistently over time.
If such values are unavailable or not appropriate thin market, volatile price movement, etc. Home office expenses or function.