Telecommunications
Network Decommissioning Cost
Recording the cost of removing and disposing of obsolete 2G/3G network equipment.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Accumulated Depreciation (2G Network) | Contra-Asset (-) | 8,000,000.00 | - |
| Network Equipment (2G Cost) | Asset (-) | - | 10,000,000.00 |
| Loss on Network Decommissioning | Expense (+) | 2,000,000.00 | - |
💡 Accountant's Note
Technology migrations require decommissioning legacy networks. If equipment is not fully depreciated at disposal, the net book value is recognized as a loss. Decommissioning costs (removal, disposal) are expensed.
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