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US GAAP and Warranty

We have an EPC project by which we have met the agreed Substantial period. The only remaining work would be any Warranty. Based on US GAAP standards, can we treat the warranty as a separate project with separate budget? Or is the project not considered completed until the expiration of the warranty?

1 reply

Mar 3, 2021

You really should ask your CPA, as you have an accounting question, not a legal question. But any warranty work would be a contingent obligation, and you really cannot define the value of possible warranty work and any value would be arbitrary. Typically, once you hit substantial completion and then acceptance, the project has been completed. Good luck.

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