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
CAclubindia
