2. Review Note 14 'Provisions' on page 28. These describe various warranties provided by NFI. Answer the following: 1) What does the term 'provision' mean? Why do warranties represent a liability? ii) From the table in Note 14 look at the column headed 'Warranty'. Provide journal entries to explain the fiscal 2019 'Additions' of $44,226 and the 'Amounts used/realized' of $(47,693), which represent payments to customers for warranty claims. ii) What proportion of the Dec 29, 2019 warranty provision is a current liability? 14. PROVISIONS The Company's insurance risk retention meets the IFRS definition of provisions, a liability with uncertain timing or amount. The Company generally provides its customers with a base warranty on the entire transit bus or motor coach and a corrosion warranty on the related structure. The movements in the provision for the base warranty costs during the periods are as follows: Insurance Risk Retention $ 22,746 12.032 (10,274) December 31, 2017 Additions Amounts used/realized Unwinding of discount and effect of changes in the discount rate Exchange rate differences December 30, 2018 Assumed as a result of business acquisition Additions Amounts used/realized Unused provision Unwinding of discount and effect of changes in the discount rate Exchange rate differences 24,504 $ Warranty 80,358 32,711 (36,332) (82) (375) 76,280 $ 7,434 44,226 (47,693) (16,642) 225 167 63,997 26,314 37,683 $ Total 103,104 44,743 (46,606) (82) (375) 100,784 7,434 53,106 (53,076) (17,146) 8,880 (5,383) (504) 225 27,497 3,000 24,497 $ 167 91,494 29,314 62,180 Less current portion December 29, 2019 $