THIS REPRESENTS THE TOTAL ADJUSTMENT FOR WARRANTY PROVISION COSTS F...

7. This represents the total adjustment for warranty provision costs for the sales of machinery that AV Co madeduring the year. The provisions of both years (in VND millions) consist of the following:Year ended Year ended31 March 2011 31 March 2012Sales revenue 70,000 100,000Opening balance of provision 3,200 2,800Closing balance of provision (4% of sales) 2,800 4,000Provision expenses/(income) in the income statement (400) 1,200The accountant made the adjustment because he believes that all provisions should be non-deductible.