New accounting norms likely for Telcos

NEW DELHI: Telecom companies are likely to have new accounting norms soon for recording transactions such as issuance of life-time validity cards and full value pre-paid cards.

The Institute of Chartered Accountants of India (ICAI) is in the process of clarifying the procedure for accounting of these peculiar transactions for which there is no precedence.

"We will issue explanations and clarifications as to how to record certain transactions which are innovative in nature," ICAI President, Mr Ved Jain told PTI.

He said telecommunication is a new area where different kinds of agreements are being inked and there are problems of recording transactions like life-time incoming or prepaid card with full talk value in the books of accounts.

He acknowledged that looking into the peculiarity of the agreements telecom companies are entering into, accountants don't have answers to certain issues. Issues relating to towers, license fees etc have cropped up.

The ICAI has recognised few companies and has asked their CFOs to be a part of the groups formed by it, the report of which will be tabled in 3-4 months, he said. - PTI

Replies (2)

hi thanx, well technical improve everyday.

Hi

I suggest you refer to PWC's website and refer to their explanation regarding revenue recognition in terms of telecom industries and rest of the other industries, it is very topical issue but you will find some help. You can also refer to IAS regarding Revenue Recognition.

Regards

Yash

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
08 October 2026
Accounts and Tax Associate

POOJA R TELI & CO

Pune

CA Inter

View Details
Company
08 October 2026
Account Executive

Elite Taxation

New Delhi

CA Foundation

View Details
Company
ARTICLESHIP 07 October 2026
Article Trainee/ CMA Trainee

RMA And Associates LLP

New Delhi

CA Inter

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
30 September 2026
Senior Accountant

Codeboard Technology

Chennai

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
21 October 2026
CA INTER/ BCOM WITH EXPERIENCE

CA S KUMAR GUPTA & CO

Amritsar

CA Inter

View Details