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Capital Employed (RoCE) and Depreciation that is to be allocated to a 

particular Network Element/product. Cost Sheets of Network Elements are 

required to decide network element based pricing of products or 

interconnection usage charges; and 

4.4 Non financial statements  These statements will provide information on 

operational data relating to network architecture, network usage, network 

capacity, product and services volumes and other measures of activities.   

These reports help to understand the methodology adopted by service 

providers to apportion and allocate joint cost and for meaningful analysis of 

financial results. 

Framework for generation of Profit and Loss Statements and Network cost 

sheets. 

5.  The generation of financial reports on Accounting Separation assume a 

methodology and the Authority expects service providers to follow the same 

methodology for preparation of reports mentioned in the Regulation. Details of 

this methodology are available in the  Guidelines on System on Accounting 

Separation  prepared by the Authority and can be accessed from TRAI's web 

site. The conceptual framework of this methodology can be understood using 

following flow diagram: 

Revenue and Costs captured from GL

Product

Network

Support function

Elements

/ department

Product

Network

Elements

ALLOCATION

Product

SUMMATION

Profit and Loss

Account