Telecommunications
Network Upgrade — 4G to 5G Capitalization
Capitalizing the cost of upgrading existing cell sites from 4G to 5G technology.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Network Equipment — 5G Upgrade (PPE) | Asset (+) | 5,000,000.00 | - |
| Cash / Progress Billing Payable | Asset/Liability (-) | - | 5,000,000.00 |
💡 Accountant's Note
Technology upgrades that enhance network capability are capitalized. Component accounting under IAS 16 requires removing the old 4G hardware's book value and adding the 5G equipment.
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