Issue 6 - Telecommunications

Issue 6 - Telecommunications

This month the Accounting and Auditing Update focusses on the telecommunication services sector and highlights key matters relating to accounting, financial reporting and regulatory areas relevant to this sector.


In this publication, we highlight the impact of Ind AS on various topics including revenue recognition under Ind AS 115, Revenue From Contracts with Customers, and how revenue recognition would be impacted for a typical player in this sector upon adoption of Ind AS 115.  We also discuss other important accounting issues such as capacity transactions, regulatory licences, impairment of assets, asset retirement obligations, etc. 

This publication also carries an interview section with Mr. Anuraag Srivastava, Chief Financial Officer, Tata Teleservices Limited. His inputs help us to explore some of the key accounting and reporting as well as topical matters relevant to the sector. 

We also covered two important topics in the telecommunication sector: revenue assurance and risks due to fraud and cyberattacks.  Revenue assurance is expected to help the telecommunication sector in achieving completeness and accuracy of revenue, and in turn help to enhance the same.  Our article on reveneue assurance, provides an overview on the concept of revenue assurance and highlights its need in this sector. Article on fraud throws light on key fraud risks/challenges in the area of mobile money services and also discusses cybersecurity and the challenges arising on account of cyberattacks targeting service providers, customers and outsourced providers.

This publication also summarised various tax issues impacting the sector such as the Income Computation and Disclosure Standards (ICDS), spectrum sharing and trading, royalty payments, withholding tax issues on the sale of SIM cards and prepaid vouchers, etc.  Additionally, we also put forth the potential impact of the Goods and Services Tax (GST) requirements on this sector. 

Additionally, our publication carries a regular synopsis of regulatory updates.

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