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.
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