Capitalization of Tangible Assets; Correction
Correction To Final Rule.
This document contains technical corrections to the Illustrations in CAS 9904.404, “Capitalization of Tangible Assets.” An amendment to this Standard was published on February 13, 1996 (61 FR 5520). However, while the contractor's minimum cost criteria for capitalization was increased from $1,500 to $5,000 in the body of the Standard, this change was not reflected in the Illustrations part of the Standard. This technical correction brings the figures in the relevant Illustrations into line with the $5,000 minimum cost criteria for capitalization currently incorporated in the body of the Standard.
Table of Contents Back to Top
DATES: Back to Top
This rule is effective June 30, 2005.
FOR FURTHER INFORMATION CONTACT: Back to Top
Rein Abel, Director of Research Cost Accounting Standards Board (telephone 202-395-3254).
SUPPLEMENTARY INFORMATION: Back to Top
When the Standard was amended in February 1996 (61 FR 5520) only the fundamental requirement at 9904-40 (b)(1) was changed to reflect the increase in the capitalization criteria from $1,500 to $5,000. However, corresponding changes were not made to the Illustrations in the Standard. This document makes the necessary technical corrections to Illustrations at 9904-60.
- Government procurement
- Cost accounting standards
Accordingly, for the reasons set forth above, it is proposed to correct 48 CFR part 9904 as follows:
PART 9904—COST ACCOUNTING STANDARDS Back to Top
1.Authority. The authority citation for part 9904 continues to read as follows:
2.In 9904.404-60 (a) (1), first sentence, remove “$2,000” and insert “$6,000” in its place; and in the second sentence remove “$1,500” and insert “$5,000” in its place; and in paragraph (a) (1) (i) revise the first sentence to read as follows: “Contractor acquires a tangible capital asset with a life of 18 months at a cost of $6,500.”
David H. Safavian,
Chair, Cost Accounting Standards Board.
[FR Doc. 05-12857 Filed 6-29-05; 8:45 am]
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