Determining financial statement effects of various liabilities XYZ Limited XYZ Limited designs and manufactures a diversified product range for the international high-frequency radio, satellite and metal detection markets. The 2022 annual report for XYZ Limited contained the following note:

Warranty A provision is made for the group’s estimated liability on all products sold and still under warranty, and includes claims already received. The estimate is based on the group’s warranty experience over previous years.

20. Provisions 2022 2021 $000 $000 Current Employee benefits 2 592 2 637 Warranty repairs 2 846 2 496 5 438 5 133 Noncurrent Employee benefits 3 476 3 451 Reconciliation of warranty provisions Carrying amount at beginning of year 2 496 1 551 Provisions made during the year 1 860 2 293 Payments made during the year (1 510) (1 348)
2 846 2 496 1 Explain what would be included in the warranty repairs liability and how it would be calculated.
2 Why has the liability increased?
3 Explain what would be included in the employee benefits liability and how it would be calculated.