Department of Defense (DoD), General Services Administration (GSA), and National Aeronautics and Space Administration (NASA).
DoD, GSA, and NASA are proposing to amend the Federal Acquisition Regulation (FAR) to update references to authoritative accounting standards owing to the Financial Accounting Standards Board's (FASB's) Accounting Standards Codification (ASC) of Generally Accepted Accounting Principles (GAAP) (“Codification of GAAP”).
Interested parties should submit written comments to the Regulatory Secretariat at one of the addressees shown below on or before April 18, 2011 to be considered in the formation of the final rule.
Submit comments in response to FAR case 2010-005 by any of the following methods:
- Regulations.gov: http://www.regulations.gov. Submit comments via the Federal eRulemaking portal by inputting “FAR Case 2010-005” under the heading “Enter Keyword or ID” and selecting “Search.” Select the link “Submit a Comment” that corresponds with “FAR Case 2010-005.” Follow the instructions provided at the “Submit a Comment” screen. Please include your name, company name (if any), and “FAR Case 2010-005” on your attached document.
- Fax: (202) 501-4067.
- Mail: General Services Administration, Regulatory Secretariat (MVCB), ATTN: Hada Flowers, 1275 First Street, NE., 7th Floor, Washington, DC 20417.
Instructions: Please submit comments only and cite FAR Case 2010-005, in all correspondence related to this case. All comments received will be posted without change to http://www.regulations.gov, including any personal and/or business confidential information provided.Start Further Info
FOR FURTHER INFORMATION CONTACT:
Mr. Edward N. Chambers, Procurement Analyst, at (202) 501-3221 for clarification of content. For information pertaining to status or publication schedules, contact the Regulatory Secretariat at (202) 501-4755. Please cite FAR Case 2010-005.End Further Info End Preamble Start Supplemental Information
In June of 2009, the FASB announced, in its Statement Number 168, that effective for financial statements issued for interim and annual periods ending after September 15, 2009, the FASB ASC would become the source of authoritative U.S. GAAP recognized by the FASB to be applied by nongovernmental entities. The FASB stated that this codification supersedes existing references in U.S. GAAP. Consequently, DoD, GSA, and NASA are updating the superseded references in three FAR sections with the GAAP Codification references. The revisions to the three FAR sections are intended to have no effect other than to simply replace the superseded references with updated references. The references to the prior GAAP in FAR 31.205-6(o)(2)(iii)(A)(1) will be handled in a separate FAR case.
II. Executive Order 12866
This is not a significant regulatory action and, therefore, was not subject to review under Section 6(b) of Executive Order 12866, Regulatory Planning and Review, dated September 30, 1993. This rule is not a major rule under 5 U.S.C. 804.Start Printed Page 8990
III. Regulatory Flexibility Act
DoD, GSA, and NASA do not expect this proposed rule to have a significant economic impact on a substantial number of small entities within the meaning of the Regulatory Flexibility Act, 5 U.S.C. 601, et seq., because the rule merely updates references to authoritative accounting standards owing to the FASB's GAAP Accounting Standard Codification.
Therefore, an Initial Regulatory Flexibility Analysis has not been performed. DoD, GSA, and NASA invite comments from small business concerns and other interested parties on the expected impact of this rule on small entities.
DoD, GSA, and NASA will also consider comments from small entities concerning the existing regulations in subparts affected by the rule in accordance with 5 U.S.C. 610. Interested parties must submit such comments separately and should cite 5 U.S.C. 610 (FAR Case 2010-005), in correspondence.
IV. Paperwork Reduction Act
The proposed rule does not contain any information collection requirements that require the approval of the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35).Start List of Subjects
List of Subjects in 48 CFR Parts 31 and 52End List of Subjects Start Signature
Dated: February 8, 2011.
Acting Director, Office of Governmentwide Acquisition Policy.
Therefore, DoD, GSA, and NASA propose amending 48 CFR parts 31 and 52 as set forth below:
1. The authority citation for 48 CFR parts 31 and 52 continues to read as follows:Start Part
PART 31—CONTRACT COST PRINCIPLES AND PROCEDURES
2. Amend section 31.205-11 by revising the introductory text of paragraph (h) to read as follows:
(h) A “capital lease,” as defined in Financial Accounting Standards Board's Accounting Standards Codification (FASB ASC) 840, Leases, is subject to the requirements of this cost principle. (See 31.205-36 for Operating Leases.) FASB ASC 840 requires that capital leases be treated as purchased assets, i.e., be capitalized, and the capitalized value of such assets be distributed over their useful lives as depreciation charges or over the leased life as amortization charges, as appropriate, except that—
3. Amend section 31.205-36 by revising paragraph (a) to read as follows:
(a) This section is applicable to the cost of renting or leasing real or personal property acquired under “operating leases” as defined in Financial Accounting Standards Board's Accounting Standards Codification (FASB ASC) 840, Leases. (See 31.205-11 for Capital Leases.)
PART 52—SOLICITATION PROVISIONS AND CONTRACT CLAUSES
4. Amend section 52.204-10 by revising the date of the clause and in paragraph (a), in the definition “Total compensation”, revising paragraph (2) to read as follows:
Reporting Executive Compensation and First-Tier Subcontract Awards (Date)
(a) * * *
Total compensation * * *
(2) Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Financial Accounting Standards Board's Accounting Standards Codification (FASB ASC) 718, Compensation-Stock Compensation.
5. Amend section 52.212-5 by revising the date of the clause and paragraph (b)(4) to read as follows:
Contract Terms and Conditions Required To Implement Statutes or Executive Orders—Commercial Items (Date)
(b) * * *
6. Amend section 52.213-4 by revising the date of the clause and paragraph (a)(2)(i) to read as follows:
Terms and Conditions—Simplified Acquisitions (Other Than Commercial Items) (Date)
(a) * * *
(2) * * *
[FR Doc. 2011-3354 Filed 2-15-11; 8:45 am]
BILLING CODE 6820-EP-P