Active RAN Sharing — Cost Split with Partner
Recording the cost-sharing payment under a Radio Access Network sharing agreement.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Network Sharing Income (RAN Partner Contribution) | Revenue (+) | - | 120,000.00 |
| Accounts Receivable (RAN Partner) | Asset (+) | 120,000.00 | - |
💡 Accountant's Note
Active RAN sharing allows two operators to share radio equipment, dramatically reducing network opex. The hosting operator charges the guest operator for their share of network costs.
Practitioner & Systems Framework
💻 ERP Architecture
Active RAN sharing income is calculated based on the cost-sharing formula in the RAN sharing agreement — typically an agreed percentage of the host's network operating costs (energy, maintenance, site rental) attributable to the shared sites. The host operator invoices the guest operator monthly based on actual cost data from the network management and finance systems. The income is posted to the wholesale revenue sub-account. RAN sharing also affects network asset and depreciation accounting — if the guest operator shares ownership of active equipment, the host's capex and depreciation may need to be proportionally allocated.
⚠️ Audit Flags
Auditors confirm the cost allocation methodology in the RAN sharing agreement is being applied correctly — test the actual costs used as the basis for the monthly charge. Assess whether the arrangement constitutes a joint operation under IFRS 11 (where both operators have rights to the assets and obligations for the liabilities) rather than a simple service arrangement. If IFRS 11 applies, the host should recognise its proportionate share of the assets, liabilities, revenues, and expenses. Test that network assets shared with the partner are not fully depreciated by the host without recognising the partner's cost contribution.
📄 Required Documentation
RAN sharing agreement (cost allocation formula, shared site list), IFRS 11 joint arrangement assessment, monthly cost calculation and invoice, RAN partner AR aging, network asset register for shared sites, depreciation split calculation (if IFRS 11 applies), and TRC approval of the sharing arrangement.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.