Which of the following statements isnot true regarding the treatment of warranties under the new revenue recognition guidance in ASC Topic 606? A warranty that assures the product is free of defects is not a distinct performance obligation. Warranties that provide services beyond assuring the product is defect-free at the time of sale are separate performance obligations. A warranty that covers services that are normally considered routine maintenance is an assurance warranty. The length of the warranty period should be considered.

Which of the following statements is not true regarding the treatment of warranties under the new revenue recognition guidance in ASC Topic 606? A warranty that assures the product is free of defects...

Which of the following statements isnot true regarding the treatment of warranties under the new revenue recognition guidance in ASC Topic 606?

A warranty that assures the product is free of defects is not a distinct performance obligation.

Warranties that provide services beyond assuring the product is defect-free at the time of sale are separate performance obligations.

A warranty that covers services that are normally considered routine maintenance is an assurance warranty.

Jun 10, 2022