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

When to submit

Business units subject to modified coverage do not normally submit Disclosure Statements. The exception to the rule is if the Business Unit is a contributing segment. Each segment of a Business Unit that does not meet an exemption of prior years CAS covered awards were less than 50M and and less than 30% of the total sales for the segment.

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.