What Happened
Pentagon Moves Away From Government-Unique Cost Accounting
The Pentagon is moving away from government-unique Cost Accounting Standards to Generally Accepted Accounting Principles, or GAAP, to make it easier for commercial firms to do business with the department. According to a memo released by Deputy Defense Secretary Steve Feinberg, the department will shift from CAS to GAAP, which is used in the commercial sector. However, some experts question how this shift will be implemented, particularly in light of a previous memo that suggested the Pentagon could install its own software in company data systems. The decision was reported by Federal News Network.