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(d)   Historical Cost Accounting  means a system of accounting where 

assets, liabilities, costs and revenues are recorded at the value when the 

transactions were incurred and where assets are valued and depreciated 

according to their cost at the time of purchase; 

(e) 

 Holding gain or loss  means gain or loss when the replacement cost of 

an asset changes while the asset is still being held at the Historical Cost.  

Mathematically, 

Holding Gain or Loss= NBV

t 1

X(GRC

t 

/HCA)   NBV

t 1

X(GRC

t 1 

/HCA) 

Where, NBV

t 1 

= Written down value of an asset at historical cost at the 

beginning of year t, 

GRC

t     = 

Gross replacement cost of an asset at the end of year t, 

HCA    = Cost of an asset at the time of its purchase; 

(f) 

 Financial capital maintenance  is a methodology of recognising profit 

after taking account of holding gain or loss arising as a result of 

replacement cost accounting; 

(g) 

  Geographical area  is service area, which is to be treated as separate 

segment for purpose of preparing Reports under regulation 4. 

Geographical areas are mentioned in the column (3) of Schedule   I for 

services mentioned in column (2) of that Schedule; 

(h)   Intra circle call  means long distance call within boundaries of one 

telecom circle; 

(i) 

 Intra circle network  means network to carry long distance traffic 

within boundaries of one Telecom Circle; 

(j) 

 Local call  means calls originating and terminating within the same 

local area and charged at local call rates; 

(k) 

 Long distance call  means a call terminating in a local area other than 

in which it is originated; 

(l) 

 Modern equivalent asset  means value of currently available asset with 

the same level of capacity and functionality as that of original asset; 

(m)    Product  means a sub service within a service which is treated as 

separate accounting segment and profit and loss statement is to be 

prepared for each of the product mentioned in the column (4) of the 

Schedule I for services mentioned in column (2) of that schedule;  

(n)   Profit Centre  means a service or a product offered by a service 

provider to which revenues and cost can be traced so that profits can be 

ascribed to that activity;