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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IAS 37 Provisions, Contingent Liabilities and Contingent Assets
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
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
Thank you so much. I really appreciate your taking time to reply. I would never have this cleared without your help.