Modified CAS Coverage

There are 3 types of CAS coverage. They are:

No coverage

Modified CAS coverage

Full CAS coverage

Standards only applying to Modified CAS Coverage

There are four (4) standards that only apply to Modified CAS coverage. They are:

CAS 401 - Consistency in Estimating, Accumulating, and Reporting Costs

CAS 402 - Consistency in Allocating Costs Incurred for the Same Purpose

CAS 405 - Accounting for Unallowable Costs

CAS 406 - Cost Accouting Period

Disclosure Statements

Segments subject to modified coverage do not normally submit Disclosure Statements. Segments that meet the following criteria need to submit a Disclosure Statement.

(ii) In the most recently completed cost accounting period the segment's CAS-covered awards are less than 30 percent of total segment sales for the period and less than $10 million.

Note: In order to qualify for the disclosure exemption, a contributing segment must meet both tests, percent sales and dollar threshold, unless another exemption applies.