Federal Register #RIN 0348AB90

OMB Final Rule: Rescission and Revision of Cost Accounting Standards to Align with GAAP

This opportunity concerns a regulatory update from the Office of Management and Budget (OMB), Cost Accounting Standards Board: - The final rule rescinds Cost Accounting Standards (CAS) 408 and 411 in their entirety - Most provisions of CAS 404 and 409 are also rescinded - Remaining content from CAS 404 and 409 is relocated within the Code of Federal Regulations - The purpose is to align CAS with Generally Accepted Accounting Principles (GAAP) - Streamlines requirements and reduces overlap between CAS and GAAP - No Original Equipment Manufacturers (OEMs) or vendors are involved, as this is a regulatory change - The rule ensures continued protection of government interests by relying on GAAP, other CAS standards, and Federal Acquisition Regulation (FAR) requirements - Notable requirement: retention and relocation of certain provisions from CAS 404 and 409 to maintain cost measurement and assignment protections

Description

The Office of Management and Budget (OMB), Cost Accounting Standards Board, is issuing a final rule that rescinds Cost Accounting Standards (CAS) 408 and 411 entirely and most provisions of CAS 404 and 409 to align with Generally Accepted Accounting Principles (GAAP). The remaining content from CAS 404 and 409 will be relocated within the Code of Federal Regulations. This rule aims to streamline CAS by reducing overlap with GAAP while protecting government interests. The rule follows a prior Notice of Proposed Rulemaking and is effective August 7, 2026.

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