IAS 37

Is Warranty cost capitalized or included in cost of the asset?

Is Warranty cost capitalized or included in cost of the asset?

Warranty in simple words is a promise by the manufacturer to make good of your loss under certain conditions. This helps win customers’ confidence and is one of the major consideration in buyer’s purchase process. Warranty offers comes in different forms such as simple warrant, extended warranty, replacement warranty, repair warranty, life time warranty etc. […]