Cost Accounting Standards

Complete Seminar Details

Daily Schedule

9:00a.m.-4:00p.m.

Course ends at 12:00 noon on the 3rd day

CLE Hours

This Course is Eligible for

13.75(60 minute)

16.5(50 minute)

CPE Hours

This Course is Eligible for

16.0(CPE) hours of credit.

Program Level: Basic

Program Prerequisite: None

Advance Preparation: None

Method: Group-Live

A comprehensive course in Government contract requirements with key instruction by specialists in accounting and law.

Now required for both Defense and Civilian agencies.

Includes coverage of new developments and any prospective implications of the Pension Protection Act of 2006.

They were born out of frustration - out of the Government’s smoldering irritation in dealing with contractors’ differing accounting practices and high-dollar claims for price increases. Yet, like them or not, they are here to stay. Indeed, they may aptly be compared to the so-called “truth in negotiation” requirements which (whatever may be their weaknesses) will probably always be part of the procurement picture.

It all began in 1970, with the passage by Congress of the statute which created the Cost Accounting Standards Board and charged that Board with the duty of prescribing Standards for realization of “uniformity” and “consistency” in contractors’ cost accounting practices. The resulting Standards have, predictably, had a major impact on the procurement process - an impact whose shock waves are still being felt.

So we all must accommodate to Cost Accounting Standards - we all, in plain words, must learn to live with them. It is for that reason that this special program has been developed.

Scope & Technique

Because the Cost Accounting Standards are complex - often hard to read, let alone understand - careful attention has been paid to the substantive content and instructional technique of this course. It starts with a finely crafted exposition of the system as a whole; follows this with consideration of the methods by which the Standards are administered and enforced; turns to an analysis of disclosure statements and of the Standards’ relationship to recognized cost accounting practices-and, finally, swings into detailed study of the critical substantive Standards.

To assure understanding, maximum provision has been made for questioning by the audience. Toward that end instructors will (a) deliver information-packed lectures and (b) answer your questions-concentrating on particular aspects of their subjects which are of interest to you. Our purpose: To make certain that you learn the Standards’ requirements and know what must be done to comply with them.

The Course Curriculum

Day One

9:00 The CAS System Administration & Enforcement

The CAS System: A concentrated explanatory briefing on the scope, scheme, operating mechanisms and general impact of the Cost Accounting Standards system. Applicability of Cost Accounting Standards and Disclosure Statement requirements to: (a) defense prime contracts and subcontracts, (b) non-defense prime contracts and subcontracts, (c) corporate divisions, (d) corporate subsidiaries. Relationship of Cost Accounting Standards to the allowability of costs. The contract clauses which implement the Standards-an analysis of their provisions, functions and application.

Administration & Enforcement: Duties and rights of Government contractors and their subcontractors. Responsibility of the procuring agencies for administration and enforcement of the Standards. The critical cost impact of changes (required by the Standards) in cost accounting practices. Adjustments in contract prices - upward and downward - resulting from the Standards. Procedures for negotiating price adjustments-including coordinated negotiation. Current CAS problem areas.

1:00 Disclosure Statements; Cost Accounting Practices

Disclosure Statements: Their purpose, content, submission, review-a study of what’s required and what’s not.

Cost Accounting Practices: A survey of acceptable accounting systems, of reasonable cost accounting practices, and of the Cost Accounting Standards relating to these areas.

• Standard 401-Consistency In Estimating, Accumulating And Reporting Costs
• Standard 402-Consistency In Allocating Cost Incurred For The Same Purpose
• Standard 405-Accounting For Unallowable Costs
• Standard 406-Cost Accounting Period

Analysis Of Specific Standards

The critical current Cost Accounting Standards have been grouped into four substance-related categories - which will be covered in the following sessions. For each category, the assigned Faculty member will: (a) explain the requirements of the Standards; (b) analyze their features - the good, the bad, the unusual; (c) point out any gaps or loopholes in their coverage; (d) indicate any inconsistencies which exist between the Standards and (i) generally accepted accounting principles, (ii) the cost principles applicable to Government contracts, and (iii) accounting for tax purposes; and (e) cover the mechanics (and problems) of transition from previously acceptable procedures to the Standards.

Day Two

9:00 Compensation Of Personnel

• Standard 408-Compensated Personal Absence
• Standard 412- Compensation And Measurement Of Pension Costs
• Standard 413-Adjustment And Allocation Of Pension Costs
• Standard 415-Accounting For The Cost Of Deferred Compensation

1:00 Tangible Assets & Capital

• Standard 404-Capitalization Of Tangible Assets
• Standard 407-Use Of Standard Costs For Direct Material And Direct Labor
• Standard 409-Depreciation Of Tangible Capital Assets
• Standard 411-Accounting For Acquisition Costs Of Material
• Standard 414-Cost Of Money As An Element Of The Cost Of Facilities Capital
• Standard 416-Accounting For Insurance Costs
• Standard 417-Cost Of Money As An Element Of Cost Of Facilities Under Construction

Day Three

9:00 Home Office, G&A Expense, Overhead & IR&D

• Standard 403-Allocation Of Home Office Expense To Segments
• Standard 410-Allocation Of G&A Expense
• Standard 418-Allocation Of Direct And Indirect Costs
• Standard 420-Accounting For IR&D And B&P Costs

12:00 Noon Adjournment

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