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094608 1 (1975-05-01)

handle is hein.gao/gaobadxom0001 and id is 1 raw text is: 







                            STATEMENT OF THE
                  HONORABLE ELMER B. STAATS, CHAIRMAN
                    COST ACCOUNTING STANDARDS BOARD
                              BEFORE THE
                  ECONOMIC STABILIZATION SUBCOMMITTEE
                                OF THE
                   COMMITTEE ON BANKING AND CURRENCY
                UNITED STATES HOUSE OF REPRESENTATIVES
                                  ON
                   COST ACCOUNTING STANDARD NO. 409

                             MAY 1, 1975




Mr. Chairman and Members of the Subcommittee:


     I welcome this opportunity to discuss Cost Accounting Standard
Number 409, Depreciation of Tangible Capital Assets. There has been

considerable.misunderstanding among some defense contractors and defense

industry associations as to what the Standard provides. This hearing

should help both in clarifying the reasons for promulgation of the Standard

and also in explaining its provisions.

     The Cost Accounting Standards Board believes that the Standard is

a keystone to the development of Cost Accounting Standards for defense

contracts. The Board believes that it establishes fair and equitable

requirements for measuring and allocating depreciation costs under

negotiated defense contracts and subcontracts, and that it promotes a

greater degree of uniformity and consistency in the pricing of those

contracts.


                                  ~93~ o996o,'

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