Note 13. Provision for warranty
The changes in the amount of provision for warranty are as follows:
|Balance January 1||7,966||9,910|
|Charged to cost of sales||11,779||10,675|
|Foreign currency translation effect||714||764|
|Balance December 31||9,910||9,023|
Costs of warranty include the cost of labor, material and related overhead necessary to repair a product during the warranty period. The majority of warranty period is one year. The Company accrues for the estimated cost of the warranty on its products shipped in the provision for warranty, upon recognition of the sale of the product. The costs are estimated based on actual historical expenses incurred and on estimated future expenses related to current sales, and are updated periodically. Actual warranty costs are charged against the provision for warranty.