Telecommunications

Tower Site Rent — Cash Lease Payment

Recording the actual monthly cash payment for a tower site lease under IFRS 16.

Account NameTypeDebit ($)Credit ($)
Lease Liability — Tower (Principal Reduction)Liability (-)2,550.00-
Interest Expense — Tower Lease (Already Accrued)Liability (-)450.00-
Cash / BankAsset (-)-3,000.00

💡 Accountant's Note

Under IFRS 16, the cash lease payment splits between reducing the lease liability (principal) and settling the interest accrual. The P&L impact comes from depreciation of the ROU asset and interest on the lease liability — not the cash payment.

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