Difference between revisions of "Asset Valuations Resulting from Business Combinations"
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| + | {{Cost Allowability | ||
| + | |Allowable or Unallowable=Allowable | ||
| + | |Regulation Source=FAR | ||
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== Asset valuations resulting from business combinations<ref> FAR 31.205-52</ref> == | == Asset valuations resulting from business combinations<ref> FAR 31.205-52</ref> == | ||
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== FAR Summary == | == FAR Summary == | ||
| − | (a) For tangible capital assets, when the purchase method of accounting for a business combination is used, whether or not the contract or subcontract is subject to CAS, the allowable depreciation and cost of money shall be based on the capitalized asset values measured and assigned in accordance with 48 CFR 9904.404-50(d), if allocable, reasonable, and not otherwise unallowable. | + | (a) For tangible capital assets, when the purchase method of accounting for a business combination is used, whether or not the contract or subcontract is subject to CAS, '''the allowable depreciation and cost of money shall be based on the capitalized asset values measured and assigned in accordance with 48 CFR 9904.404-50(d), if allocable, reasonable, and not otherwise unallowable.''' |
| − | (b) For intangible capital assets, when the purchase method of accounting for a business combination is used, allowable amortization and cost of money shall be limited to the total of the amounts that would have been allowed had the combination not taken place. | + | (b) For intangible capital assets, when the purchase method of accounting for a business combination is used, '''allowable amortization and cost of money shall be limited to the total of the amounts that would have been allowed had the combination not taken place.''' |
==References and Notes== | ==References and Notes== | ||
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[[Category: FAR 31 - Contract Cost Principles and Procedures]] | [[Category: FAR 31 - Contract Cost Principles and Procedures]] | ||
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Revision as of 05:51, 27 March 2015
Allowable or Unallowable: Allowable
Source: FAR
Asset valuations resulting from business combinations[1]
FAR Summary
(a) For tangible capital assets, when the purchase method of accounting for a business combination is used, whether or not the contract or subcontract is subject to CAS, the allowable depreciation and cost of money shall be based on the capitalized asset values measured and assigned in accordance with 48 CFR 9904.404-50(d), if allocable, reasonable, and not otherwise unallowable.
(b) For intangible capital assets, when the purchase method of accounting for a business combination is used, allowable amortization and cost of money shall be limited to the total of the amounts that would have been allowed had the combination not taken place.
References and Notes
- ↑ FAR 31.205-52
