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CAS Board - 49th Meeting
June 12, 2007

Chairman Paul Denett convened the meeting at 9:00 A.M. and welcomed the members to the 49th meeting of the Cost Accounting Standards (CAS) Board which was held in the Eisenhower Executive Office Building, 1750 Pennsylvania Avenue, Washington, DC. In addition to the Chairman, Board Members Mses. April Stephenson and Kathleen Turco as well as Messrs. Bruce Timman and Richard Wall were in attendance. Also in attendance for the entire meeting were Messrs. Rob Burton, Deputy Administrator, OFPP, David Capitano and Eric Shipley, CAS Board Staff and Ms. Laura Auletta, CAS Board Manager.

Agenda Items as Determined by the April Board Meeting

Final Rules

Employee Stock Ownership Plans (ESOPs). The Board discussed and unanimously approved issuing a final rule providing criteria for measuring the costs of ESOPs and their assignment to cost accounting periods. 

Staff Discussion Papers (SDPs)

Pension Protection Act. Mr. Eric Shipley discussed the SDP developed to address issues related to CAS 412 and 413 and the Pension Protection Act changes to the Employees Retirement Income Security Act of 1974 (ERISA). Subject to the addition of a question and some other Board recommended changes, the Board unanimously approved the issuance of the SDP.

CAS 403, Operating Revenue Threshold. As requested by the Board at the April 2007 meeting, Mr. David Capitano presented a draft SDP to address alternative means of raising the thresholds of the standard, which were established in 1978. After adding additional questions to the SDP, the Board approved its issuance.

CAS Exemption for Contracts Performed Entirely Outside the United States. The Board reviewed public comments received in response to an SDP published September 13, 2005 (70FR53997) soliciting public views on whether the exemption at 48 CFR 9903.201-1(b)(14) should be revised or eliminated.Based on public comments, the Board has determined that the current exemption should remain in place.

Staff Briefings

Computing the Cost Impact of a Change in Accounting Practice. As instructed by the Board at the April 2007 meeting, Mr. David Capitano briefed the Board on issues related to computing the cost impact of a change in accounting practice. The Board unanimously agreed to establish a working group and tasked it to flush out the issues.

Other Business

As requested by Mr. Wall at the April 2007 meeting, the Board began its discussion of a blanket CAS exemption for all commercial item contracts. This discussion will be continued at the next Board meeting. [Meeting scheduled for November 16, 2007].

The Chair, Mr. Denett, adjourned the meeting at 12:00 P.M.
Minutes submitted by Laura Auletta July 27, 2007.