Conformance of the Cost Accounting Standards to Generally Accepted Accounting Principles for Operating Revenue and Lease Accounting, 70572-70573 [2020-22904]

Download as PDF 70572 Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules E. Steps Taken To Minimize Significant Impact on Small Entities, and Significant Alternatives Considered PART 73—RADIO BROADCAST SERVICES 1. The authority citation for part 73 continues to read as follows: ■ 19. The RFA requires an agency to describe any significant alternatives that it has considered in reaching its proposed approach, which may include the following four alternatives (among others): (a) The establishment of differing compliance or reporting requirements or timetables that take into account the resources available to small entities; (b) the clarification, consolidation, or simplification of compliance or reporting requirements under the rule for small entities; (c) the use of performance, rather than design, standards; and (d) an exemption from coverage of the rule, or any part thereof, for small entities. 20. We are directed under law to describe any alternatives we consider, including alternatives not explicitly listed above. The Public Notice describes and seeks comment on a proposed limit on the number of new NCE FM applications that may be filed during the filing window described in the Public Notice. The proposed limit is intended to benefit all small NCE entities seeking to establish a new NCE FM service on a local or regional basis by preventing mass filings of speculative applications. The proposed limit should benefit applicants by expediting the review and processing of applications filed during the window. The proposed limit does not impose any significant compliance or reporting requirements because it would merely set a limit on the number of applications for new NCE FM authorizations that a party could file during the window. Accordingly, we are not aware of any alternatives that would benefit small entities. We encourage small entities to comment on the proposed limit described in the Public Notice. F. Federal Rules That May Duplicate, Overlap, or Conflict With the Proposed Limit 21. None. List of Subjects in 47 CFR Part 73 khammond on DSKJM1Z7X2PROD with PROPOSALS Radio, Reporting and recordkeeping requirements. Federal Communications Commission. Marlene Dortch, Secretary. Proposed Rule For the reasons discussed in the preamble, the Federal Communications Commission proposes to amend 47 CFR part 73 as follows: VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 Authority: 47 U.S.C. 154, 155, 301, 303, 307, 309, 310, 334, 336, 339. 2. Section 73.503 is amended by adding paragraph (g) to read as follows: ■ § 73.503 service. Licensing requirements and * * * * * (g) Application Limit. An applicant may file no more than a total of ten applications in the 2021 NCE FM filing window. A party to an application filed in the 2021 NCE FM filing window may hold attributable interests, as defined in § 73.7000, in no more than a total of ten applications filed in the window. If it is determined that any party to an application has an attributable interest in more than ten applications, the Media Bureau will retain the ten applications that were filed first—based on the date of application receipt—and dismiss all other applications. [FR Doc. 2020–24366 Filed 11–4–20; 8:45 am] BILLING CODE 6712–01–P OFFICE OF MANAGEMENT AND BUDGET 48 CFR Part 9904 Conformance of the Cost Accounting Standards to Generally Accepted Accounting Principles for Operating Revenue and Lease Accounting Cost Accounting Standards Board, Office Federal Procurement Policy, Office of Management and Budget. ACTION: Advance notice of proposed rulemaking. AGENCY: The Office of Federal Procurement Policy (OFPP), Cost Accounting Standards Board (Board), is publishing this document to announce the availability of an advance notice of proposed rulemaking to address the potential conformance of the Cost Accounting Standards (CAS) to Generally Accepted Accounting Principles (GAAP) for operating revenue and lease accounting. This ANPRM follows the issuance of a Staff Discussion Paper (SDP) published on March 13, 2019. DATES: Comments must be in writing and must be received by January 4, 2021. SUMMARY: Due to delays in OMB’s receipt and processing of mail, ADDRESSES: PO 00000 Frm 00071 Fmt 4702 Sfmt 4702 respondents are strongly encouraged to submit comments electronically to ensure timely receipt. Electronic comments should be submitted to CASB@omb.eop.gov. Be sure to include your name, title, organization, and reference case CASB2020–02. If you must submit by regular mail, please do so at Office of Federal Procurement Policy, 725 17th Street NW, Washington, DC 20503, ATTN: Mathew Blum. Please note that all public comments received are subject to the Freedom of Information Act and will be posted in their entirety, including any personal and/or business confidential information provided. Do not include any information you would not like to be made publically available. FOR FURTHER INFORMATION CONTACT: Mathew Blum, Cost Accounting Standards Board (Telephone 202–680– 9579; email mblum@omb.eop.gov). Availability: The full text of the ANPRM, including the Board’s response to public comments on the SDP and the draft proposed amendments to the Cost Accounting Standards, is available on the Office of Management and Budget homepage at: https:// www.whitehouse.gov/omb/ management/office-federalprocurement-policy/#_Office_of_ Federal_5. SUPPLEMENTARY INFORMATION: I. Regulatory Process Rules, regulations and standards issued by the Board are codified at 48 CFR Chapter 99. Pursuant to 41 U.S.C. 1502(c), the Board, prior to the establishment of any new or revised CAS, is required to complete a prescribed rulemaking process. The process generally consists of the following four steps: 1. Consult with interested persons concerning the advantages, disadvantages and improvements anticipated in the pricing and administration of Government contracts as a result of the adoption of a proposed standard. 2. Promulgate an Advance Notice of Proposed Rulemaking (ANPRM). 3. Promulgate a Notice of Proposed Rulemaking (NPRM). 4. Promulgate a Final Rule. II. Background and Summary The Board is releasing an ANPRM addressing how CAS might be modified to conform to the changes to GAAP that occurred after a related CAS was promulgated. In accordance with 41 U.S.C. 1502(c), the Board is required to consult with interested persons E:\FR\FM\05NOP1.SGM 05NOP1 khammond on DSKJM1Z7X2PROD with PROPOSALS Federal Register / Vol. 85, No. 215 / Thursday, November 5, 2020 / Proposed Rules concerning the advantages, disadvantages, and improvements anticipated in the pricing and administration of government contracts as a result of the adoption of a proposed standard prior to the promulgation of any new or revised CAS. On March 13, 2019 (84 FR 9143), the Board published a SDP to solicit information and viewpoints on how to implement the Board’s statutory requirement to review and conform CAS to GAAP to the maximum extent practicable. Among other things, the SDP asked commenters what recommended actions, if any, the Board should take regarding the changes in GAAP for operating revenue and lease accounting rules that occurred after CAS was promulgated. Three respondents urged the Board to give these issues the highest priority in the CAS–GAAP conformance initiative. They were concerned that if recent changes in GAAP are inconsistent with CAS, there may be inadvertent CAS violations, confusion over CAS requirements, inconsistent treatment among contractors, and additional costs to maintain separate accounting practices for GAAP and CAS. The Board appreciates these comments and recognizes the need to take timely action to resolve the potential confusion on the interpretation of CAS as a result of changes in GAAP addressing operating revenue and lease accounting rules. Accordingly, this ANPRM requests public comment on proposed revisions that are being considered to (i) align CAS with GAAP on the handling of operating revenue and (ii) clarify CAS definitions to make clear that GAAP changes on lease accounting are not recognized for CAS purposes. operating leases and reclassified as right-of-use assets should be excluded from treatment as intangible capital assets and tangible capital assets for CAS. III. Public Comments Interested persons are invited to provide input on the ANPRM. All comments must be in writing and submitted as instructed in the ADDRESSES section. In commenting on the ANPRM, the Board encourages respondents, and especially entities that are covered by CAS, to discuss what, if any, burdens they believe would be added or reduced if the ANPRM was finalized as described below. Specifically, the Board seeks to understand what, if any, burden is created or reduced for contractors by relying solely on the GAAP definition of operating revenue and deleting the more detailed CAS definition. Similarly, the Board welcomes feedback regarding any burden that is expected to be created or reduced for contractors by making clear that property formerly classified as Michael E. Wooten, Administrator for Federal Procurement Policy, and Chair, Cost Accounting Standards Board. VerDate Sep<11>2014 18:49 Nov 04, 2020 Jkt 253001 IV. Paperwork Reduction Act The Paperwork Reduction Act, Public Law 96–511, does not apply to this draft proposed rule, because this rule imposes no paperwork burden on offerors, affected contractors and subcontractors, or members of the public which requires the approval of OMB under 44 U.S.C. 3501, et seq. V. Executive Orders 12866 and 13563 and the Regulatory Flexibility Act Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess all costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). E.O. 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. Because the affected contractors and subcontractors are those who are already subject to CAS and the draft proposed rule would seek to rely more heavily on GAAP, which these contractors are using in their commercial transactions, the economic impact of this draft proposed rule on contractors and subcontractors is expected to be minor. Accordingly, this is not a significant regulatory action and, therefore, is not subject to review under section 6(b) of E.O. 12866, Regulatory Planning and Review, dated September 30, 1993. [FR Doc. 2020–22904 Filed 11–4–20; 8:45 am] BILLING CODE 3110–01–P DEPARTMENT OF COMMERCE National Oceanic and Atmospheric Administration 50 CFR Part 648 [Docket No. 201029–0281; RTID 0648– XX064] Fisheries of the Northeastern United States; Atlantic Bluefish Fishery; 2021 Bluefish Specifications National Marine Fisheries Service (NMFS), National Oceanic and AGENCY: PO 00000 Frm 00072 Fmt 4702 Sfmt 4702 70573 Atmospheric Administration (NOAA), Commerce. ACTION: Proposed rule; request for comments. NMFS proposes specifications for the 2021 Atlantic bluefish fishery, as recommended by the Mid-Atlantic Fishery Management Council. This action is necessary to comply with the implementing regulations of the Bluefish Fishery Management Plan that require NMFS to publish specifications for the fishery after providing the opportunity for public comment. The proposed specifications are intended to establish allowable harvest levels for the stock that will prevent overfishing, consistent with the most recent scientific information. This action also informs the public of the proposed fishery specifications and provides an opportunity for comment. DATES: Comments must be received by November 20, 2020. ADDRESSES: You may submit comments on this document, identified by NOAA– NMFS–2020–0129, by the following method: Electronic Submission: Submit all electronic public comments via the Federal e-Rulemaking Portal. 1. Go to https://www.regulations.gov/ docket?D=NOAA-NMFS-2020-0129, 2. Click the ‘‘Comment Now!’’ icon, complete the required fields, and 3. Enter or attach your comments. Instructions: Comments sent by any other method, to any other address or individual, or received after the end of the comment period, may not be considered by NMFS. All comments received are part of the public record and will generally be posted for public viewing on www.regulations.gov without change. All personal identifying information (e.g., name, address, etc.), confidential business information, or otherwise sensitive information submitted voluntarily by the sender will be publicly accessible. NMFS will accept anonymous comments (enter ‘‘N/ A’’ in the required fields if you wish to remain anonymous). If you are unable to submit your comment through www.regulations.gov, contact Cynthia Ferrio, Fishery Policy Analyst, Cynthia.Ferrio@noaa.gov. Copies of the Supplemental Information Report (SIR) prepared for this action and other supporting documents for the proposed specifications are available upon request from Dr. Christopher M. Moore, Executive Director, Mid-Atlantic Fishery Management Council, Suite 201, 800 North State Street, Dover, DE 19901. These documents are also accessible via the internet at http://www.mafmc.org. SUMMARY: E:\FR\FM\05NOP1.SGM 05NOP1

Agencies

[Federal Register Volume 85, Number 215 (Thursday, November 5, 2020)]
[Proposed Rules]
[Pages 70572-70573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-22904]


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OFFICE OF MANAGEMENT AND BUDGET

48 CFR Part 9904


Conformance of the Cost Accounting Standards to Generally 
Accepted Accounting Principles for Operating Revenue and Lease 
Accounting

AGENCY: Cost Accounting Standards Board, Office Federal Procurement 
Policy, Office of Management and Budget.

ACTION: Advance notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Office of Federal Procurement Policy (OFPP), Cost 
Accounting Standards Board (Board), is publishing this document to 
announce the availability of an advance notice of proposed rulemaking 
to address the potential conformance of the Cost Accounting Standards 
(CAS) to Generally Accepted Accounting Principles (GAAP) for operating 
revenue and lease accounting. This ANPRM follows the issuance of a 
Staff Discussion Paper (SDP) published on March 13, 2019.

DATES: Comments must be in writing and must be received by January 4, 
2021.

ADDRESSES: Due to delays in OMB's receipt and processing of mail, 
respondents are strongly encouraged to submit comments electronically 
to ensure timely receipt. Electronic comments should be submitted to 
[email protected]. Be sure to include your name, title, organization, 
and reference case CASB2020-02. If you must submit by regular mail, 
please do so at Office of Federal Procurement Policy, 725 17th Street 
NW, Washington, DC 20503, ATTN: Mathew Blum.
    Please note that all public comments received are subject to the 
Freedom of Information Act and will be posted in their entirety, 
including any personal and/or business confidential information 
provided. Do not include any information you would not like to be made 
publically available.

FOR FURTHER INFORMATION CONTACT: Mathew Blum, Cost Accounting Standards 
Board (Telephone 202-680-9579; email [email protected]).
    Availability: The full text of the ANPRM, including the Board's 
response to public comments on the SDP and the draft proposed 
amendments to the Cost Accounting Standards, is available on the Office 
of Management and Budget homepage at: https://www.whitehouse.gov/omb/management/office-federal-procurement-policy/#_Office_of_Federal_5.

SUPPLEMENTARY INFORMATION:

I. Regulatory Process

    Rules, regulations and standards issued by the Board are codified 
at 48 CFR Chapter 99. Pursuant to 41 U.S.C. 1502(c), the Board, prior 
to the establishment of any new or revised CAS, is required to complete 
a prescribed rulemaking process. The process generally consists of the 
following four steps:
    1. Consult with interested persons concerning the advantages, 
disadvantages and improvements anticipated in the pricing and 
administration of Government contracts as a result of the adoption of a 
proposed standard.
    2. Promulgate an Advance Notice of Proposed Rulemaking (ANPRM).
    3. Promulgate a Notice of Proposed Rulemaking (NPRM).
    4. Promulgate a Final Rule.

II. Background and Summary

    The Board is releasing an ANPRM addressing how CAS might be 
modified to conform to the changes to GAAP that occurred after a 
related CAS was promulgated. In accordance with 41 U.S.C. 1502(c), the 
Board is required to consult with interested persons

[[Page 70573]]

concerning the advantages, disadvantages, and improvements anticipated 
in the pricing and administration of government contracts as a result 
of the adoption of a proposed standard prior to the promulgation of any 
new or revised CAS.
    On March 13, 2019 (84 FR 9143), the Board published a SDP to 
solicit information and viewpoints on how to implement the Board's 
statutory requirement to review and conform CAS to GAAP to the maximum 
extent practicable. Among other things, the SDP asked commenters what 
recommended actions, if any, the Board should take regarding the 
changes in GAAP for operating revenue and lease accounting rules that 
occurred after CAS was promulgated. Three respondents urged the Board 
to give these issues the highest priority in the CAS-GAAP conformance 
initiative. They were concerned that if recent changes in GAAP are 
inconsistent with CAS, there may be inadvertent CAS violations, 
confusion over CAS requirements, inconsistent treatment among 
contractors, and additional costs to maintain separate accounting 
practices for GAAP and CAS.
    The Board appreciates these comments and recognizes the need to 
take timely action to resolve the potential confusion on the 
interpretation of CAS as a result of changes in GAAP addressing 
operating revenue and lease accounting rules. Accordingly, this ANPRM 
requests public comment on proposed revisions that are being considered 
to (i) align CAS with GAAP on the handling of operating revenue and 
(ii) clarify CAS definitions to make clear that GAAP changes on lease 
accounting are not recognized for CAS purposes.

III. Public Comments

    Interested persons are invited to provide input on the ANPRM. All 
comments must be in writing and submitted as instructed in the 
Addresses section.
    In commenting on the ANPRM, the Board encourages respondents, and 
especially entities that are covered by CAS, to discuss what, if any, 
burdens they believe would be added or reduced if the ANPRM was 
finalized as described below. Specifically, the Board seeks to 
understand what, if any, burden is created or reduced for contractors 
by relying solely on the GAAP definition of operating revenue and 
deleting the more detailed CAS definition. Similarly, the Board 
welcomes feedback regarding any burden that is expected to be created 
or reduced for contractors by making clear that property formerly 
classified as operating leases and reclassified as right-of-use assets 
should be excluded from treatment as intangible capital assets and 
tangible capital assets for CAS.

IV. Paperwork Reduction Act

    The Paperwork Reduction Act, Public Law 96-511, does not apply to 
this draft proposed rule, because this rule imposes no paperwork burden 
on offerors, affected contractors and subcontractors, or members of the 
public which requires the approval of OMB under 44 U.S.C. 3501, et seq.

V. Executive Orders 12866 and 13563 and the Regulatory Flexibility Act

    Executive Orders (E.O.s) 12866 and 13563 direct agencies to assess 
all costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). E.O. 
13563 emphasizes the importance of quantifying both costs and benefits, 
of reducing costs, of harmonizing rules, and of promoting flexibility. 
Because the affected contractors and subcontractors are those who are 
already subject to CAS and the draft proposed rule would seek to rely 
more heavily on GAAP, which these contractors are using in their 
commercial transactions, the economic impact of this draft proposed 
rule on contractors and subcontractors is expected to be minor. 
Accordingly, this is not a significant regulatory action and, 
therefore, is not subject to review under section 6(b) of E.O. 12866, 
Regulatory Planning and Review, dated September 30, 1993.

Michael E. Wooten,
Administrator for Federal Procurement Policy, and Chair, Cost 
Accounting Standards Board.
[FR Doc. 2020-22904 Filed 11-4-20; 8:45 am]
BILLING CODE 3110-01-P