Accounting for Broadband Internet Service Provider

Hi Sameer,

IMO the purchase of optical cable to be installed in consumer premises can never be an asset. The confusion arises when it can be either an Input purchase or an Expense.

The ISP Company may charge installation charges from the user but it does not separately charge cable cost, it is bundled with everything. Thus, we cannot determine whether it is sold as an item or not.

So, we should book it as expense incurred in provision of services.

Let's wait for other's opinions.

Purchase of Assets.

Below is the Useful life as mentioned in the schedule II -

Telecom— Ducts, Cables and optical fibre = 18 Years.