PwC TIAG perspectives: Accounting for customer premises equipment under IFRS 15 and IFRS 16

How do telecoms account for equipment under IFRS 15 and IFRS 16?

From routers and modems to handsets and other mobile devices – including set-top boxes, decoders, and satellite receivers -- within the telecommunications sector, it is common for service arrangements to be dependent on the use of such equipment. 

This paper examines two particular questions; how should an operator determine whether equipment is ‘distinct’ for the purpose of IFRS 15 and whether arrangements involving equipment contain a lease for the purpose of IFRS 16?

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Christoph Gruss
Partner, Telecommunications Industry Accounting Group Chairperson
Tel: +4 9699 585 3415
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Peter Hogarth
Partner, Accounting Consulting Services
Tel: +44 (0) 20 7213 1654
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