IAS 37 Provisions, Contingent Liabilities and Contingent Assets

OObed9y ago

Dear Sir, Please can you tell me if warranty provisions are over-stated in one accounting period why is the profit overstated in subsequent periods? Thank you Obed

P2-D2Tutor9y ago#1

Hi, This is because the over stated warranty provision is then released in the next accounting period, thus overstating the next periods accounting profit Thanks

OObed9y ago#2

Thank you so much. I really appreciate your taking time to reply. I would never have this cleared without your help.

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