[Federal Register: February 16, 2011 (Volume 76, Number 32)]
[Proposed Rules]
[Page 8989-8990]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr16fe11-25]
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DEPARTMENT OF DEFENSE
GENERAL SERVICES ADMINISTRATION
NATIONAL AERONAUTICS AND SPACE ADMINISTRATION
48 CFR Parts 31 and 52
[FAR Case 2010-005; 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: Proposed rule.
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SUMMARY: 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'').
DATES: 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.
ADDRESSES: 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.
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.
SUPPLEMENTARY INFORMATION:
I. Background
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.
[[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).
List of Subjects in 48 CFR Parts 31 and 52
Government procurement.
Dated: February 8, 2011.
Millisa Gary,
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:
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
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--
* * * * *
3. Amend section 31.205-36 by revising paragraph (a) to read as
follows:
31.205-36 Rental costs.
(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:
52.204-10 Reporting Executive Compensation and First-Tier Subcontract
Awards.
* * * * *
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:
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 (Date)
* * * * *
(b) * * *
---- (4) 52.204-10, Reporting Executive Compensation and First-
Tier Subcontract Awards (Date) (Pub. L. 109-282) (31 U.S.C. 6101
note).
* * * * *
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) (Date)
(a) * * *
(2) * * *
(i) 52.204-10, Reporting Executive Compensation and First-Tier
Subcontract Awards (Date) (Pub. L. 109-282) (31 U.S.C. 6101 note).
* * * * *
[FR Doc. 2011-3354 Filed 2-15-11; 8:45 am]
BILLING CODE 6820-EP-P