[Federal Register Volume 77, Number 1 (Tuesday, January 3, 2012)]
[Rules and Regulations]
[Pages 202-203]
From the Federal Register Online via the Government Printing Office [http://www.gpo.gov/]
[FR Doc No: 2011-33423]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 31 and 52
[FAC 2005-55; FAR Case 2010-005; Item VI; Docket 2010-0005, Sequence 1]
RIN 9000-AM00
Federal Acquisition Regulation; Updated Financial Accounting
Standards Board Accounting References
AGENCIES: Department of Defense (DoD), General Services Administration
(GSA), and National Aeronautics and Space Administration (NASA).
ACTION: Final rule.
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SUMMARY: DoD, GSA, and NASA are issuing a final rule amending the
Federal Acquisition Regulation (FAR) to update references to
authoritative accounting standards owing to the Financial Accounting
Standards Board's Accounting Standards Codification of Generally
Accepted Accounting Principles.
DATES: Effective Date: February 2, 2012.
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 FAC 2005-55, FAR
Case 2010-005.
SUPPLEMENTARY INFORMATION:
I. Background
DoD, GSA, and NASA published a proposed rule in the Federal
Register at 76 FR 8989 on February 16, 2011, to update the references
based upon the Financial Accounting Standards Board's (FASB) Statement
Number 168 which stated that the FASB Accounting Standards Codification
(ASC) would become the source of authoritative U.S. Generally Accepted
Accounting Principles (GAAP) recognized by the FASB to be applied to
nongovernmental entities. The revisions are intended to have no effect
other than to simply replace the superseded references with
[[Page 203]]
updated references. The Regulatory Secretariat received one response to
the proposed rule.
II. Discussion and Analysis
The Civilian Agency Acquisition Council and the Defense Acquisition
Regulations Council reviewed the public comment in the development of
the final rule. A discussion of the comment follows:
Executive Compensation Reporting
Comment: The respondent inquired if the executive compensation
reporting language applied to private companies that through the normal
course of business have no interest in disclosing this information to
the public/Government.
Response: This comment is outside the scope of this case, which was
limited to simply replacing superseded FAR references with updated
references. FAR 4.1403 delineates which Government contracts require
the reporting of executive compensation (FAR clause 52.204-10).
III. Executive Orders 12866 and 13563
Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess
all costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). E.O.
13563 emphasizes the importance of quantifying both costs and benefits,
of reducing costs, of harmonizing rules, and of promoting flexibility.
This is not a significant regulatory action and, therefore, was not
subject to review under section 6(b) of E.O. 12866, Regulatory Planning
and Review, dated September 30, 1993. This rule is not a major rule
under 5 U.S.C. 804.
IV. Regulatory Flexibility Act
The Department of Defense, the General Services Administration, and
the National Aeronautics and Space Administration certify that this
final rule will not 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 makes
administrative changes only by merely updating references to
authoritative accounting standards owing to the Financial Accounting
Standard Board's Accounting Standards Codification of Generally
Accepted Accounting Principles.
V. Paperwork Reduction Act
The final 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).
List of Subjects in 48 CFR Parts 31 and 52
Government procurement.
Dated: December 21, 2011.
Laura Auletta,
Director, Office of Governmentwide Acquisition Policy, Office of
Acquisition Policy, Office of Governmentwide Policy.
Therefore, DoD, GSA, and NASA amend 48 CFR parts 31 and 52 as set
forth below:
0
1. The authority citation for 48 CFR parts 31 and 52 continues to read
as follows:
Authority: 40 U.S.C. 121(c); 10 U.S.C. chapter 137; and 42
U.S.C. 2473(c).
PART 31--CONTRACT COST PRINCIPLES AND PROCEDURES
0
2. Amend section 31.205-11 by revising the introductory text of
paragraph (h) to read as follows:
31.205-11 Depreciation.
* * * * *
(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--
* * * * *
0
3. Amend section 31.205-36 by revising paragraph (a) to read as
follows:
31.205-36 Rental costs.
(a) This subsection 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
0
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:
52.204-10 Reporting Executive Compensation and First-Tier Subcontract
Awards.
* * * * *
Reporting Executive Compensation and First-Tier Subcontract Awards (FEB
2012)
* * * * *
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.
* * * * *
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5. Amend section 52.212-5 by revising the date of the clause and
paragraph (b)(4) to read as follows:
52.212-5 Contract Terms and Conditions Required To Implement Statutes
or Executive Orders--Commercial Items.
* * * * *
Contract Terms and Conditions Required To Implement Statutes or
Executive Orders--Commercial Items (FEB 2012)
* * * * *
(b) * * *
(4) 52.204-10, Reporting Executive Compensation and First-Tier
Subcontract Awards (Feb 2012) (Pub. L. 109-282) (31 U.S.C. 6101
note).
* * * * *
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6. Amend section 52.213-4 by revising the date of the clause and
paragraph (a)(2)(i) to read as follows:
52.213-4 Terms and Conditions--Simplified Acquisitions (Other Than
Commercial Items).
* * * * *
Terms and Conditions--Simplified Acquisitions (Other Than Commercial
Items) (FEB 2012)
(a) * * *
(2) * * *
(i) 52.204-10, Reporting Executive Compensation and First-Tier
Subcontract Awards (FEB 2012)
(Pub. L. 109-282) (31 U.S.C. 6101 note).
* * * * *
[FR Doc. 2011-33423 Filed 12-30-11; 8:45 am]
BILLING CODE 6820-EP-P