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Companies often provide warranties that provide assurance that the product will work to specifications. Basically these are a quality guarantee. These are often called manufacturer’s warranties or assurance warranties. Companies also provide service warranties, warranties that provide additional service beyond the assurance-type warranties. Service warranties represent a performance obligation under revenue recognition. This video is the first of 2 videos that describe how IFRS 15, Revenue Recognition, requires service warranties to be recorded. Course Length: 8:49 minutes Source: Else Grech Accounting

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