Federal Register / Vol. 60, No. 240 / Thursday, December 14, 1995 / Rules and Regulations 64255

Services, and the Administrator for the

National Aeronautics and Space

Administration.

Unless otherwise specified, all Federal

Acquisition Regulation (FAR) and other

directive material contained in FAC 90–35 is

effective December 14, 1995.

Dated: December 1, 1995.

Eleanor R. Spector,

Director, Defense Procurement.

Dated: December 6, 1995.

Ida M. Ustad,

Associate Administrator, for Acquisition

Policy.

Dated: December 7, 1995.

Tom Luedtke,

Deputy Associate Administrator for

Procurement, NASA.

Therefore, 48 CFR Part 31 is amended

as set forth below:

PART 31—CONTRACT COST

PRINCIPLES AND PROCEDURES

1. The authority citation for 48 CFR

Part 31 continues to read as follows:

Authority: 40 U.S.C. 486(c); 10 U.S.C.

chapter 137; and 42 U.S.C. 2473(c).

2. Section 31.205–11 is amended at

the end of paragraph (e) by adding the

parenthetical ‘‘(but see paragraph (o) of

this subsection).’’; and by adding

paragraph (o) to read as follows:

31.205–11 Depreciation.

* * * * *

(o) In the event of a write-down from

carrying value to fair value as a result

of impairments caused by events or

changes in circumstances, depreciation

of the impaired assets shall not exceed

the amounts established on depreciation

schedules in use prior to the write-down

(see 31.205–16(g)).

3. Section 31.205–16 is amended by

revising the section heading and adding

paragraph (g) to read as follows:

31.205–16 Gains and losses on

disposition or impairment of depreciable

property or other capital assets.

* * * * *

(g) With respect to long-lived tangible

and identifiable intangible assets held

for use, no loss shall be recognized for

a write-down from carrying value to fair

value as a result of impairments caused

by events or changes in circumstances

(e.g., environmental damage, idle

facilities arising from a declining

business base, etc.). Depreciation or

amortization on pre-write-down

carrying value of impaired assets not yet

disposed of shall continue to be

recoverable under established

depreciation or amortization schedules

to the extent it is not otherwise

unallowable under other provisions of

the FAR.

[FR Doc. 95–30442 Filed 12–13–95; 8:45 am]

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48 CFR Part 31

[Federal Acquisition Circular 90–35]

Federal Acquisition Regulation; Rates

of Inflation

AGENCIES: Department of Defense (DOD),

General Services Administration (GSA),

and National Aeronautics and Space

Administration (NASA).

ACTION: Annual notice of rates of

inflation.

The Civilian Agency Acquisition

Council and the Defense Acquisition

Regulations Council have agreed to

publish as an information item, the rates

of inflation which are used in

conjunction with other factors to

determine the allowability of IR&D/B&P

costs for major contractors under

31.205–18(c)(2)(i)(C)(2) during the first

three contractor fiscal years beginning

on or after October 1, 1992. The

following rates of inflation are effective

immediately, and shall remain in effect

until superseded by the next

publication, which is anticipated in

January 1996:

Fiscal year

Annual

percentage rate

1994 ................................................ 2.5

1995 ................................................ 2.9

1996 ................................................ 3.0

1997 ................................................ 3.0

The above rates are the Price

Escalation Indices for the Research,

Development, Test & Evaluation

(RDT&E) Account, Total Obligation

Authority (TOA), issued by the

Principal Deputy Under Secretary of

Defense (Comptroller) on January 10,

1995. These rates of inflation supersede

those published in FAC 90–23, Item

XL—Annual Notice of Rates of Inflation,

in the Federal Register on December 28,

1994.

Dated: December 8, 1995.

Edward C. Loeb,

Acting Director, Office of Federal Acquisition

Policy.

[FR Doc. 95–30443 Filed 12–13–95; 8:45 am]

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