DESCRIPTION EFFECTIVE DATE 18. Standard 407 - Use of Standard Costs for Direct Material and Direct Labor October 1, 1974 19. Standard 408 - Accounting for Costs of Compensated Personal Absence July 1, 1975 20. Standard 409 Depreciation of Tangible Capital July 1, 1975 21. Standard 410 - Allocation of Business Unit General October 1, 1976 July 10, 1977 27. Standard 416 Accounting for Insurance Costs July 10, 1979 26. Standard 415 - Accounting for the Costs of Deferred Compensation APPENDIX B PROJECTS IN PROCESS Selection of specific areas for research and possible development of Cost Accounting Standards is based primarily on (1) relationship to the objectives of Public Law 91-379, (2) significance of observed costing problems, and (3) relationship to other work of the Board. The Board has sought and obtained advice about the importance of various problems which are involved in contract cost accounting. The research projects selected are at various stages of development and may result in one or more promulgations on each subject. Preliminary proposals and research papers have been widely circulated for some subjects. 1. Distinguishing Between Direct and Indirect Costs This study covers the accounting concepts and principles governing consistent classification of costs as direct or indirect, and the bases for making distinctions. 2. Accounting for Cost of Service Centers Research on this subject involves the development of concepts for use in the accounting for the cost of service centers. 3. Allocation of Material-Related Expenses - This subject deals with the criteria for expense-pool creation and allocation-base selection pertaining to material-related expenses, The scope includes the functions traditionally associated with the flow of materials, such as material planning and control, purchasing, receiving and stores, internal and external transportation, distribution, etc. 4. Allocation of Manufacturing, Engineering, and Comparable Overhead Costs This project covers the allocation of pools of manufacturing, engineering, and comparable overhead costs. This subject deals with criteria 5. Allocation of Indirect Costs for the accumulation of indirect costs in indirect cost pools and selection of appropriate allocation bases for such pools of cost. 6. Independent Research and Development and Bid and Proposal Costs This subject covers the accounting for costs of performing independent research and development and costs of preparing bids and certain proposals by contractors engaged in Government contracts. 7. Cost of Money as an Element of the Cost of Assets Under Construction Cost Accounting Standard 414 is applicable to facilities which are in use. This research project examines into the possibility of extending the cost of money concept to assets under construction. 8. Capacity-Related Costs - A staff study of accounting problems relative to contract changes disclosed some important accounting issues related to the cost of idle facilities and idle capacity. Research is being performed into the accounting concepts involved. 9. Allocation of Selling and Marketing Costs This project deals with the allocation of selling and marketing costs at all levels of a contractor's organization. 10. Joint Product Costing - Research is being conducted on problems involved in accounting for joint products. The project covers matters such as the allocation of raw material and manufacturing costs where a number of products are being produced concurrently (e.g., allocation of crude oil and refining costs to petroleum products). 11. Capitalized Assets · Leases Between Related Parties This project involves a review of Standard 404 in light of materials that have been more recently promulgated. The project will evaluate the adequacy of criteria to determine when assets acquired by less-than-arm's length leases should be capitalized. 12. Capitalized Assets - Gains at Disposition - This project involves a review of the provisions of Standard 409 in light of materials that have been more recently promulgated. The project will consider whether to modify the present limitation on recognition of gain on sale of capital assets. The staff continues to work on a 13. Other Potential Standards group of other topics which may later become the subject of Cost Accounting Standards. Among the more significant in this group are the following: a. Accounting for Intracompany Transfers b. Accounting for the Impact of Inflation C. Accounting for Special Facilities d. Cost of Money as an Element of the Cost of Operating Capital 14. Other Topics - The following projects will also be given attention during 1980 and 1981. Although these projects are not likely to result in Cost Accounting Standards, they may result in revisions to current Board publications. a. Revision of the Disclosure Statement b. C. This project considers the feasibility of revising the Disclosure Statement to (1) incorporate changes recommended by agencies and contractors, (2) restate questions so information on continuation sheets can be more simply prepared, (3) clarify definitions, and (4) add, delete, and/or revise questions in parts now covered by Standards. Review of Part 331 of Board Regulations The Board initiated a comprehensive review of its regulations set forth in Title 4 of the Code of Federal Regulations, Part 331. This review covers all aspects of the Board's administrative and contract coverage regulations for the implementation of Cost Accounting Standards. Standards in Operation The primary purpose of this review is 35-533 79 33 (Pt. 2) |