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Macaljoy (12/07)

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › Macaljoy (12/07)

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarP2-D2.
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  • May 17, 2018 at 9:35 am #452390
    Avatarzkaay
    Participant
    • Topics: 212
    • Replies: 98
    • ☆☆☆

    Dear Sir,

    In the question Macaljoy (12/07) requirement
    b. (ii) why they have added the extended warranty with the standard one for Year 1 warranty calculation?

    May 17, 2018 at 11:56 am #452411
    AvatarP2-D2
    Keymaster
    • Topics: 4
    • Replies: 7232
    • ☆☆☆☆☆

    Hi,

    The warranty for one year applies to the units sold with the one year warranty (2,000 units) and the extended warranty (5,000 units), so they are added together to work out he value of the provision.

    In the second year of the warranty only the 5,000 units as part of the extended warranty are included within the value of the provision as the original 2,000 are no longer covered by the warranty.

    Thanks

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