Module 6, V8 - Revenue Recognition, Service Warranties - Part 1

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.

Thanks for watching!

Else

[bhumikaaa]

Thank you so much for these videos! I really appreciate you going through all of the 5 steps :)

[ketkivinchurkr]

wow that such a nice simple and yet effective example and explanation a big thanks from india

[azirb]

Thanks Else for making revenue rec videos. They are very helpful. Can you please say which steps of revenue in IFRS is the same as ASPE?

[joycoso]

I have a question on 2 year extended warranty? I thought 2 year extended warranty mean really only 1 year extra as the other 1 year is already covered from the 1 year assurance (manufacturer) warranty. So later on when the extended warranty revenue is recognized, then it should be /12 only and not 24...can you please tell me what you think about my analysis if possible. If not that is totally fine, I'm just grateful learning from you on youtube.

[azirb]

Is it possible to make a video about financial instruments IFRS 9 or ASPE 3856? Thanks.

[johnsonlau]

how i can reach u, your teaching method make me clear and easy to understand

[shivamarora]

Can u please make a video on sales based or usage based royalties as well