Respond to the question asked in each comment below.

1. 'Warranties are honoured as part of good business practice: keep your customers happy. Whether to honour a claim, and how much cost to incur, are managerial judgements that depend on how good the customer is, what the reputation effects are, and so on. Therefore, warranties are discretionary period expenses like donations. There is no accrual for future donations, so why is there an accrual for future warranty costs?'

2. 'Employees take their long service leave years and years into the future. Whether there is any long service leave depends on whether the employee keeps working for the company and how long the employee works for the company. Therefore, long service leave costs can only be realistically determined when they are being paid in the future. Why shouldn't they be expensed then, rather than now?'