Government updates accounting standards to match private sector rules
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Table of Contents
The Office of Management and Budget (OMB) has issued a final rule that changes how certain costs are accounted for in government contracts. Specifically, the rule removes several existing Cost Accounting Standards (CAS)—namely 408 and 411—and removes most of the provisions found in standards 404 and 409.
Why it matters: This is largely an administrative cleanup intended to reduce the number of different accounting rules companies have to follow when doing business with the government.
Who it affects
- Companies and contractors that work with the federal government
This action was taken by the Office of Management and Budget; readers should consult the Federal Register for the full text before making financial or compliance decisions.
Agency: Management and Budget Office, Federal Procurement Policy Office
Source: Federal Register — read the official document