Software promotes FASB warranty disclosure rule compliance.
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Press Release Summary:
Warranty management software enables compliance with Financial Accounting Standards Board Interpretation No. 45, which requires disclosure of current and anticipated product warranty expenses. It includes service management, quality management, and product lifecycle management components. Able to integrate with other enterprise suites and legacy systems, software provides tools for managing warranty costs and streamlines service management process.
Original Press Release:
IFS Packaged Software Helps Companies Comply with FASB Warranty Disclosure Rule
CHICAGO, Nov. 5, 2003 - IFS announced today a new packaged software solution that reduces the time and cost of complying with a Financial Accounting Standards Board (FASB) rule that requires companies to disclose current and anticipated product warranty expenses. The package, which includes service management, quality management, and product lifecycle management (PLM) components, also helps companies minimize warranty costs by improving product quality, service, and maintenance.
Under FASB Interpretation No. 45, companies must disclose, in their interim and annual financial statements, the accounting policy and methodology used to calculate their product warranty liabilities. They must also provide a tabular reconciliation of the changes in these liabilities during the reporting period, including accruals for product warranties issued, accruals related to pre-existing warranties, and reductions for payments made or services provided.
"IFS not only makes it easier to track warranty expenses as needed for compliance with FASB Interpretation No. 45, but we also provide the tools for managing warranty costs, a major cost savings opportunity for many companies," said IFS North America president Michael Nordin. "IFS' integrated quality management and product lifecycle management (PLM) applications help companies avoid warranty claims by improving product quality and optimizing preventive maintenance. IFS also streamlines the service management process, reducing the cost of warranty claims settlement and strengthening customer loyalty."
According to an analysis published in the Sept. 8, 2003, issue of Warranty Week magazine, U.S. manufacturers spent over $5.5 billion honoring product warranties during the second quarter of 2003, or around $22 billion per year on an annualized basis.
IFS' warranty management solution is a fully integrated part of IFS Applications, a suite of more than 60 web-based business applications. Because IFS Applications is component-based, companies can immediately implement components such as warranty management, quality management, and PLM and then quickly and economically add other components as their requirements grow. Also, they can easily integrate the IFS software with other enterprise suites, point solutions, and legacy systems, eliminating the expense and disruption of replacing existing systems that are still functioning well.
About IFS and IFS Applications
IFS develops and supplies component-based business applications for medium and large enterprises and organizations. IFS Applications, which can be implemented step by step, is based on web and portal technology. The solution offers 60+ enterprise application components used in manufacturing, supply chain management, customer relationship management, service provision, financials, product development, maintenance and human resource administration. IFS offers customers an easier, more open alternative that can be implemented step by step.
A leading global business applications supplier, IFS has 3,000 employees, with sales in 45 countries, and more than 350,000 users worldwide. The company is listed on the Stockholm Stock Exchange (XSSE: IFS).
For additional information, contact:
John Bridges, Vice President for Strategic Marketing, IFS
Phone: +1 520 512-2000
Fax: +1 520 512-2001
E-mail: john.bridges@ifsna.com
Chris Jensen, President, Jensen Market Relations
Phone: +1 714 847-7846
Fax: +1 714 847-4856
E-mail: chris@jensenmarket.com
IFS' Web: www.ifsworld.com
