Founded in 1987, Huawei is a leading global provider of information and communications

(i) Provision for warranties
The Group provides assurance warranty on 
its standard consumer and certain enterprise 
products for a period typically covering 12 to 
24 months.

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2020 Annual Report
 
       
95
The Group estimates the costs that may 
be incurred under its assurance warranty 
obligations and records a liability in the 
amount of such costs when revenue is 
recognised. Warranty costs generally include 
spare parts, labour costs and service centre 
support. Factors that affect the Group’s 
warranty liability include the amount of 
products sold, historical and anticipated rates 
of warranty claims. The Group periodically 
reassesses its warranty liabilities and adjusts 
the amounts as necessary.