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HMRC internal manual

Corporate Intangibles Research and Development Manual

Telecommunications licences and rights: accounting and groups: date of acquisition

The date of acquisition is normally the date the IRU is available for use. This date will normally be shown in the agreement.

For accounting purposes assets are defined as ‘resources controlled by the entity as a result of past events from which future economic benefits are expected to flow to the entity’. Accounts will generally recognise ownership of an IRU when it is made available for use, not when the agreement is signed or payment made.

If payment is made before the IRU is made available for use this will not be relevant as long as it is a genuine prepayment (or deposit).