Tag Archives | contractor

Revenue Recognition on Materials Purchases – Gross or Net?

Government Contracts often include tasks requiring the Contractor to make purchases on behalf of the Government Customer. It’s important in these circumstances to consider whether the Contractor is, in reality, acting as an Agent. That conclusion might impact how the revenue for such activity is to be reported under U.S. GAAP – gross or net. […]

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Is Your Accounting System Adequate and Acceptable?

DoD first published the Business Systems Rule (BSR) as an interim rule in May 2011. The Rule provides for partial withholding of payments on CAS-covered contracts when any one of a contractor’s business systems is determined to have a significant deficiency. Certainly that could be a problem, but the real issue with the BSR came […]

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Proposed Rule Would Require Faster Payments to Subcontractors

A proposed rule publicized in the Federal Register on December 19, 2012, would add a new clause to the Federal Acquisition Regulation to require accelerated payments to small business subcontractors.  The rule would implement the temporary policy provided by Office of Management and Budget (OMB) Policy Memorandum M-12-16.  The proposed rule would provide Accelerated Payments to Small […]

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