Which statement about warranties is correct?
A)Warranties are provisions.
B)Warranties included with the product sold are accounted for under IAS18.
C)Warranties are financial liabilities.
D)Warranties included with the product sold are accounted for under IAS39.

Question

Quizplus · Accepted Answer

Warranties are provisions made by a company to cover any defects or obligations related to the product sold. They are not classified as financial liabilities but are accounted for as provisions under IAS 37.

Which Statement About Warranties Is Correct