The Office of Management and Budget’s Cost Accounting Standards (CAS) Board announced two proposed rules to eliminate more than 60 requirements imposed on federal contractors, including mandates compelling them to keep two sets of overlapping books. The CAS Board says that the proposed rules will update measuring and assigning costs for compensated personal leave, capitalization and depreciation of capital assets, and acquisition costs of material. Additionally, the federal government will now rely on Generally Accepted Accounting Practices (GAAP) to protect the government’s interests and ensure taxpayers receive the contractor’s best value in these areas. The Board said it expects to finalize rulemaking on the proposed elimination of these standards by early next year and to accelerate work on additional actions to conform government cost accounting standards to GAAP.
