FPPOFinal RuleSeptember 11, 2025

Conformance of Cost Accounting Standards to Generally Accepted Accounting Principles for Operating Revenue and Lease Accounting

Finance & BankingOther

Summary

This regulation updates federal accounting rules to match standard business accounting practices when it comes to how companies record revenue from operations and lease agreements. The change ensures that government contractors and companies doing business with the federal government use consistent accounting methods, making their financial reports more transparent and easier to compare.

Key Points

1Companies that work with the federal government must now align their accounting methods for revenue and leases with Generally Accepted Accounting Principles (GAAP), which are the standard rules most businesses follow
2This change affects how contractors record money earned from operations and how they account for leased equipment or property on their financial statements
3The update makes it easier for the government and the public to understand contractor finances by using the same accounting language as the private sector
4Companies will need to review their current accounting practices and may need to adjust how they report financial information to federal agencies
5The rule was published on September 11, 2025, and companies will need to comply with these new accounting standards going forward

Key Dates

Published

September 11, 2025

Read on Federal Register View Docket

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.