Presentation of Financial Statements

SECTION B - CASE 1: AeroTech Drones AeroTech Drones Co manufactures specialized agricultural drones. The year-end is 31 December 20X5. AeroTech sells its drones with a standard one-year warranty. Based on past experience, 80% of drones will have no defects, 15% will have minor defects costing $200 to repair, and 5% will have major defects costing $1,000 to repair. During 20X5, AeroTech sold 5,000 drones. How should the warranty provision calculated above be classified in the Statement of Financial Position at 31 December 20X5?