Provisions & Accruals (Part 1)

When can I make a provision?

• When it is probable that a cashflow is expected at balance sheet date

• When it is possible that a present obligation exist

• When the existence of obligation is fixed

When should I book warranty provision?

• At the end of the project

• At the point in time control of the promised goods or services has transferred to the external customer.

• When claim happened

Which of the following condition indicates a provision?

• General overhauls and inspections

• Maintenance of Siemens’ own assets

• Individual components that have to be replaced or repaired during the warranty period

Which of the following is the correct double entry for creation of warranty provision in a POC project?

• Dr. 68930000

  Cr. 39310000

• Dr. 68930000 (WBS .P)

  Cr. 39310000

• Dr. 68930500

  (WBS .P)

  Cr. 39310000

Warranty provision booked in FY2020 of EUR20k is now to be released due to obligation has ended and no actual cost incurred. Which of the following is the correct TTY to be used?

• TTY 07

• TTY 08

• TTY 28