How to Record CAS Practice Change Liability
Records the estimated liability to the government resulting from a voluntary change in Cost Accounting Standards (CAS) disclosure practices that increases costs to the government.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Contract Revenue (Adjustment) | Debit | 85,000.00 | - |
| Accrued Liability to US Government | Credit | - | 85,000.00 |
💡 Accountant's Note
Under CAS, if a voluntary change in accounting practice results in increased costs charged to the government, the contractor must negotiate a price adjustment to ensure the government does not pay more than it would have under the original practice.
Practitioner & Systems Framework
💻 ERP Architecture
Use a contra-revenue account to track the adjustment separately from standard billing.
⚠️ Audit Flags
Submission of a revised CAS Disclosure Statement.
📄 Required Documentation
Cost Impact Statement and negotiation records with the Administrative Contracting Officer (ACO).
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