Telecommunications
IRU — Indefeasible Right of Use (Fiber Capacity)
Selling a 20-year IRU on fiber capacity to another operator.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Cash / Bank (Upfront IRU Payment) | Asset (+) | 2,000,000.00 | - |
| Deferred IRU Revenue (Liability) | Liability (+) | - | 2,000,000.00 |
💡 Accountant's Note
An IRU grants a customer the right to use fiber capacity for a long term (15-25 years). The upfront lump sum is deferred and recognized ratably over the contract term under IFRS 15.
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