Business Services Industry

INDIA: INDIA'S TRAI ISSUES NEW ACCOUNTING SYSTEM.(Telecom Regulatory Authority of India)(Brief Article)

IPR Strategic Business Information Database, December, 2002

The Telecom Regulatory Authority of India (TRAI) has finalized its guidelines for a new accounting system, in order to better monitor and measure the financial performance of individual telecom companies. The system on accounting separation (SAS) will make it mandatory for operators to separate their records for each service being offered.

According to an official statement, the SAS anticipates to help disaggregate costs to the level of network elements and identify cross-subsidization practices in the industry. The project is scheduled for implementation from April 1, 2003, while accounting separation based on current Cost Accounting is scheduled from April 1, 2005.

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