MEASUREMENT OF STANDARD AND EXTENDED WARRANTY AND RECOMMENDATIONS TO ISSUES ENCOUNTERED IN PRACTICE
| Autor: | Mert, Huseyin, Eren, Hasan Melih |
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| Rok vydání: | 2017 |
| Předmět: | |
| Zdroj: | Volume: 3, Issue: 1 986-999 PressAcademia Procedia |
| ISSN: | 2459-0762 |
| Popis: | Warranty isa type of contract where there is a seller commitment to satisfy the sameconditions of the product at the selling date for a reasonable period of time.The services performed under this commitment are called standard warrantyservices. Nowadays, intense competition in some industries pushes firms tooffer extended warranty on top of initial warranty period. This developmentprecludes future probable revenues from spare parts and repair services duringthe life time of the product and concentrates significant portion of life timevalue of the product to the selling date. Consequently, financial performanceof the companies is improved in the short run, while is deteriorated in thelong run as if the companies treat extra warranty periods as standard warrantyperiods and accounts them accordingly. In this study, the separation ofstandard and extended warranty periods will be discussed and the accounting andmeasurement principles of those two situations in accordance with InternationalFinancial Reporting Standards will be examined. Finally, recommendations forfair presentation of warranty services across the industries will be presented. |
| Databáze: | OpenAIRE |
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