Solution-Should a liability in the form of a provision be

Should a liability in the form of a provision be recorded

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Question - Lloyd Ltd is a manufacturing of boats and give warranties at the time of sae to purchasers of its boats. Pursuant to the warranty terms, Brighton Ltd undertakes to make good, by repair or replacement, manufacturing defects become apparent within a period of three years from the date of sale.

Required - Should a liability in the form of a provision be recorded? How would it be measured and how should it be presented to financial statements users?

Reference no: EM133066954

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Should a liability in the form of a provision be recorded

Reference no: EM133066954

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