[Code of Federal Regulations]

[Title 48, Volume 7]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR9904.406-40]



[Page 371-372]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

     CHAPTER 99--COST ACCOUNTING STANDARDS BOARD, OFFICE OF FEDERAL 

           PROCUREMENT POLICY, OFFICE OF MANAGEMENT AND BUDGET

 

PART 9904_COST ACCOUNTING STANDARDS--Table of Contents

 

Sec. 9904.406-40  Fundamental requirement.



    (a) A contractor shall use this fiscal year as his cost accounting 

period, except that:

    (1) Costs of an indirect function which exists for only a part of a 

cost accounting period may be allocated to cost objectives of that same 

part of the period as provided in 9904.406-50(a).

    (2) An annual period other than the fiscal year may, as provided in 

9904.406-50(d), be used as the cost accounting period if its use is an 

established practice of the contractor.

    (3) A transitional cost accounting period other than a year shall be 

used whenever a change of fiscal year occurs.

    (4) Where a contractor's cost accounting period is different from 

the reporting period used for Federal income tax reporting purposes, the 

latter may be used for such reporting.

    (b) A contractor shall follow consistent practices in his selection 

of the cost accounting period or periods in which any types of expense 

and any types of adjustment to expense (including prior-period 

adjustments) are accumulated and allocated.

    (c) The same cost accounting period shall be used for accumulating 

costs in an indirect cost pool as for establishing its allocation base, 

except that the contracting parties may agree to use a



[[Page 372]]



different period for establishing an allocation base as provided in 

9904.406-50(e).



[57 FR 14153, Apr. 17, 1992; 57 FR 34167, Aug. 3, 1992]