Lonsdale Ltd Sells Mobile Phones and Provides a One-Year Warranty

Multiple Choice

Lonsdale Ltd sells mobile phones and provides a one-year warranty.Lonsdale is able to recognise revenue at point-of-sale in accordance with IASB (2011) because:

A) this is industry practice.
B) repairs are unlikely within a year of sale.
C) cost of repairs can be estimated based on experience and this is recognised as warranty expense in the year of sale.
D) cost of repairs can be estimated based on experience and this is recognised as sales returns.