CERTYNEX IFRS ACADEMY

A company manufactures sofas and grants its customers a warranty on those it sells. How is this warranty treated under IFRS 17?

It falls within IFRS 17, like any contract that covers the risk of a defect in a good sold.

It falls within IFRS 17 because the company bears a risk, even though it does not sell insurance.

It is excluded from IFRS 17 but falls under no other IFRS, because it is part of the sale.

It is excluded from the scope of IFRS 17 and falls under other IFRS, depending on its nature.