CAS 418 – Allocation of Direct and Indirect Costs (Part 4 of 6)

*This is Part 4 of a 6-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. This Part 2 addressed the requirements/techniques for application related to indirect cost pools. Part 3 addressed the requirements/techniques for application related to allocation bases (with the exception of the allocation of indirect cost pools that benefit each other, which is addressed in Part 4 of this blog). This Part 4 addresses the requirements/techniques for application related to allocation bases for the allocation of indirect cost pools that benefit each other. Part 5 will address special allocations. Part 6 will … Continue reading

DOD Seeks Comments on Insourcing Notification Interim Rule

Last week we learned that the DOD issued an interim rule about “private sector notification of in-sourcing actions,” and invited small business concerns and other interested parties to submit written comments about its impact.  This interim rule revises DFARS 237.102-79, and requires contracting officers to provide “written notification to affected incumbent contractors of Government in-sourcing determinations.”  The notification must be provided within 20 business days of insourcing decision and must “summarize the requiring official’s final determination as to why the service is being in-sourced.”  Although the interim rule essentially tracks much of the guidance found in the DOD’s January 2013 memorandum, the DOD’s invitation to submit written comments provides another great opportunity for contractors to voice their concerns about the current notification framework and its … Continue reading

CAS 418 – Allocation of Direct and Indirect Costs (Part 3 of 6)

*This is Part 3 of a 6-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. This Part 2 addressed the requirements/techniques for application related to indirect cost pools. This Part 3 addresses some of the requirements/techniques for application related to allocation bases. Part 4 will address the requirements/techniques for application related to allocation bases not addressed in Part 3 of this blog. Part 5 will address special allocations. Part 6 will address pre-determined indirect rates. Background: This standard provides the criteria for the accumulation of indirect costs, including service center and overhead costs, in … Continue reading

CAS 418 – Allocation of Direct and Indirect Costs (Part 2 of 6)

CAS 418 – Allocation of Direct and Indirect Costs (Part 2 of 6) *This is Part 2 of a 6-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. This Part 2 will address the requirements/techniques for application related to indirect cost pools. Part 3 will address some of the requirements/techniques for application related to allocation bases. Part 4 will address the requirements/techniques for application related to allocation bases not addressed in Part 4 of this blog. Part 5 will address special allocations. Part 6 will address pre-determined indirect rates.   Background: This standard provides … Continue reading

CAS 418 – Allocation of Direct and Indirect Costs (Part 1 of 6)

*This is Part 1 of a 6-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. This Part 1 addresses the overall purpose of the standard, as well as the requirements/techniques for application related to direct costs. Part 2 will address the requirements/techniques for application related to indirect cost pools. Part 3 will address some of the requirements/techniques for application related to allocation bases. Part 4 will address the requirements/techniques for application related to allocation bases not addressed in Part 4 of this blog. Part 5 will address special allocations. Part 6 will address pre-determined indirect rates.   Background: This standard provides the criteria for the accumulation of indirect costs, including service center and overhead … Continue reading

CAS 408 – Accounting for Costs of Compensated Personal Absence (Part 2 of 2)

*This is Part 2 of a 2-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed measurement of the costs of compensated personal absence. This Part 2 addresses the assignment and allocability of the costs of compensated personal absence. Background:  This standard provides the criteria for measuring, assigning, and allocating the costs for vacation, sick leave, holiday, and other compensated personal absence.  Although the purpose section of the standard only mentions measurement, the fundamental requirements and techniques for application provide criteria related to measurement, assignment, and allocability. Assigning Cost of Compensated Personal Absence to Accounting Periods CAS 408-40(a) and CAS 408-50(b)(1)) require that the costs of compensated personal absence be assigned to … Continue reading

CAS 408: Accounting for Costs of Compensated Personal Absence (Part 1 of 2)

*This is Part 1 of a 2-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. This Part 1 addresses measurement of the costs of compensated personal absence. Part 2 will address the assignment and allocability of the costs of compensated personal absence. Background:  This standard provides the criteria for measuring, assigning, and allocating the costs for vacation, sick leave, holiday, and other compensated personal absence.  Although the purpose section of the standard only mentions measurement, the fundamental requirements and techniques for application provide criteria related to measurement, assignment, and allocability.   Key Definitions The standard includes the following key definitions that establish the basis for the criteria contained in CAS 408. Compensated Personal Absence … Continue reading

CAS 409 – Depreciation of Tangible Capital Assets (Part 3 of 3)

*This is Part 3 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the general requirements/techniques, as well as those related to determining the estimated useful life of a tangible capital asset. Part 2 addressed the areas of depreciation methods and the determination of estimated residual values. This Part 3 addresses the accounting for gains/losses, cost allocation, and accounting for assets acquired prior to the applicability of CAS 409. Background: This standard provides the criteria for assigning costs of tangible capital assets to cost accounting periods and for allocating such costs within such periods in an objective and consistent manner.  The basic concept is that the amount assigned to … Continue reading

CAS 409 – Depreciation of Tangible Capital Assets (Part 2 of 3)

*This is Part 2 of a 3-part blog. Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. Part 1 addressed the general requirements/techniques, as well as those related to determining the estimated useful life of a tangible capital asset. This Part 2 addresses the areas of depreciation methods and the determination of estimated residual values. Part 3 will address the accounting for gains/losses, cost allocation, and accounting for assets acquired prior to the applicability of CAS 409. Background:  This standard provides the criteria for assigning costs of tangible capital assets to cost accounting periods and for allocating such costs within such periods in an objective and consistent manner.  The basic concept is that the amount assigned … Continue reading

CAS 409 – Depreciation of Tangible Capital Assets (Part 1 of 3)

*This is Part 1 of a 3-part blog.  Each part addresses the fundamental requirements and techniques for application related to the standard, and provides specific examples. This Part 1 addresses the general requirements/techniques, as well as those related to determining the estimated useful life of a tangible capital asset. Part 2 will address the area of depreciation methods and the determination of estimated residual values. Part 3 will address the accounting for gains/losses, cost allocation, and accounting for assets acquired prior to the applicability of CAS 409. Background: This standard provides the criteria for assigning costs of tangible capital assets to cost accounting periods and for allocating such costs within such periods in an objective and consistent manner.  The basic concept is that the amount … Continue reading