# Warranty Obligations

**IRI:** https://folio.openlegalstandard.org/R9Z711iWJXduD8qEPMQuyTK

## Labels

**Preferred Label:** Warranty Liability

## Definition

Warranty Obligations, also known as Warranty Liabilities, are commitments made by a company to repair, replace, or refund products that are found to be defective within a specified period. These obligations are recognized as a liability on the company's balance sheet, and an expense is recorded in the income statement to match the estimated future costs of honoring the warranties.

## Sub Class Of

- https://folio.openlegalstandard.org/R8Gt68Hspze0zsEdYzUS2Fq

## See Also

- https://folio.openlegalstandard.org/R7NPSSODp2sRYDRSQ2hvF3b

**Deprecated:** False