[Federal Register Volume 76, Number 32 (Wednesday, February 16, 2011)]
[Proposed Rules]
[Pages 8989-8990]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3354]


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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