The question; Is the cost un-allowable because to accrue implys use of the market value in 3 different years, so cost is impacted by the change in market (31.205-6(i)). Or is it un-allowable under 31.205-6(k)(2) because it is deferred income paid in subsequent periods to the work. Or, is it in fact allowable
We recommend that you discuss this situation with your DCAA representative. If it is a large business, they must comply with CAS. The company's practices shall be in accordance with their disclosure statement. We do not have enough information to provide an answer.
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