• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

PQ Awards Nominations

Please help us to win one of the PQ Magazine awards and send in the voting form >>
You can nominate us in any or all of the following categories: Online College of the Year, Study Resource of the Year, Private Sector Lecturer of the Year, and Accountancy Personality of the Year.

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

warranty

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › warranty

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by MikeLittle.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 12, 2015 at 3:17 am #281837
    Kip Fatt
    Member
    • Topics: 29
    • Replies: 62
    • ☆☆

    warranty under the IAS 37 would be replaced by IFRS 15 right?

    November 12, 2015 at 7:55 am #281886
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22714
    • ☆☆☆☆☆

    The standard identifies two types of warranties:

    • Warranties that provide a service to the customer in addition to assurance that the delivered product is as specified in the contract (called ‘service-type warranties’)

    • Warranties that promise the customer that the delivered product is as specified in the contract (called ‘assurance-type warranties’)

    Service-type warranties

    If the customer has the option to purchase the warranty separately or if the warranty provides a service to the customer beyond fixing defects that existed at the time of sale, the entity is providing a service-type warranty.

    The Boards determined that this type of warranty represents a distinct service and is a separate performance obligation. Therefore, using the estimated stand-alone selling price of the warranty, the entity allocates a portion of the transaction price to the warranty. The entity then recognises the allocated revenue over the period the warranty service is provided.

    Assurance-type warranties

    The Boards concluded that assurance-type warranties do not provide an additional good or service to the customer (i.e., they are not separate performance obligations). By providing this type of warranty, the selling entity has effectively provided a guarantee of quality. Under the standard, these types of warranties are accounted for as warranty obligations and the estimated cost of satisfying them is accrued in accordance with the requirements in IAS 37.

    Does that answer it?

    November 12, 2015 at 9:03 am #281909
    Kip Fatt
    Member
    • Topics: 29
    • Replies: 62
    • ☆☆

    Yes. Thank you

    November 12, 2015 at 2:26 pm #281967
    MikeLittle
    Keymaster
    • Topics: 26
    • Replies: 22714
    • ☆☆☆☆☆

    You’re welcome

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • chimporera on CIMA P2 Chapter 11 Test
  • chimporera on CIMA P2 Chapter 13 Test
  • Chong on Conceptual Framework – ACCA SBR lecture
  • mariyaaa on Foreign exchange risk management (1) Part 4 – ACCA (AFM) lectures
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy