Cost Accounting Standards GAAP Conformance (CAS 404, 408, 409, 411)

Current understanding

OMB’s Cost Accounting Standards Board is issuing a final rule to conform Cost Accounting Standards (CAS) 404 (Capitalization of Tangible Assets), 408 (Accounting for Costs of Compensated Personal Absence), 409 (Depreciation of Tangible Capital Assets), and 411 (Accounting for Acquisition Costs of Material) with Generally Accepted Accounting Principles. CAS 408 and 411 are rescinded in their entirety, and most provisions of CAS 404 and 409 are rescinded, with remaining content relocated within 48 CFR. The action is administrative conformance rather than a substantive policy shift, reducing duplicative cost-accounting compliance burdens on government contractors covered by CAS.

Evidence log

• 2026-09-01 — Conformance of Cost Accounting Standards to Generally Accepted Accounting Principles for CAS 407 Use of Standard Costs for Direct Material and Direct Labor: cross-connection with cost-accounting-standards-gaap-conformance: Both track the CAS Board’s ongoing project to rescind individual Cost Accounting Standards that duplicate GAAP; CAS 407 rescission parallels the CAS 404/408/409/411 conformance rulemaking. (novelty: 2)

Open questions

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