The provision for warranties should be just that. A reserve that...

The provision for warranties should be just that. A reserve that a prudent person would consider to be able to conservatively cover future outgoings relating to warranty. It should not mean that they have actually spent it and with good engineering, manufacturing, management and luck they may never need to. With the current relatively short time frame and low numbers to reference from they should be erring on the high side and this can be adjusted down later.

Cheers

U. Plodder