Discussion:Accrued Warranty Exposure
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Discussion Forum Index --> Consumer Questions --> Accrued Warranty Exposure
| 15 October 2009 | |
| My company is in the aviation industry and we do paint jobs on planes. We warranty the work for a period of 3 years. Should the Accrued Warranty Exposure which is on the books be classified as a current liability? | |
| 16 October 2009 | |
| It really depends on the quality of your paint (or powder), and what the planes are flying through. You know, a lot of people will try to sue you, and yet at the same time, they'll fly through a flock of seagulls, or fly low over the desert and kick up the sand.
SO, a lot has to do with the wording of your warranty, and based upon your past warranty claims experience. On top of that, a lot of judges today either own a private plane, or they have a friend that does. So, if they've had a bad expereince with your company, and you come in front of that judge, you can have the book thrown at you. | |
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