CASB seeking input on elimination of CAS 404 and CAS 411 to align with GAAP

From Yahoo Finance: 2025-04-21 06:51:00

The Cost Accounting Standards Board (CASB) is seeking public input on the proposed elimination of CAS 404 and CAS 411 to align government cost accounting standards with GAAP. The changes aim to address revisions in GAAP that have reduced discrepancies between the standards. CAS-covered contractors may see adjustments in tangible capital asset valuation and inventory costing methods.

The proposed revisions would remove the $5,000 acquisition cost threshold under CAS 404 and require contractors to choose between “weighted average cost” and “moving average” methods outlined in CAS 411. While GAAP doesn’t mandate specific costing methods, the CASB expects adherence to the stated options. Contractors must maintain written accounting policies despite GAAP not requiring them.

The CASB’s recent actions in June 2024 have prompted the current notice, signaling priorities for CAS reform. Proposed changes to CAS 403, CAS 414, and CAS 417 aim to address conflicts with GAAP on revenue and lease accounting. Redundant requirements in CAS 408 and CAS 409 may be eliminated, based on industry feedback. Public feedback is also sought on applying CAS to indefinite delivery vehicles to clarify ambiguities.



Read more at Yahoo Finance: CASB seeks public comments on elimination of certain standards