TPPL had finalised its accounts for the year ending 31 December 20X1. The date of authorization of financial statements for issue was 22 March 20X2. Before the financial statements were issued, the following information came to your attention, i.e. TPPLs usual practice was to offer one-year warranty on all the watches sold by the company. In order to provide better customer service, the board of directors decided during a board meeting in December 20X1 to give a two-year warranty for all watches sold, including those sold before 20X1. The policy of the two-year warranty was announced in the middle of January 20X2 through a promotional campaign and the terms and conditions were made available on the companys website. Explain and discuss how TPPL should treat this scenario in its financial statements for the year ended 31 December 20X1 under the applicable SFRSs. (8 marks)