Firm files patent on service contract and warranty accounting
Kerper Bowron LLC, an actuarial, accounting and insurance consulting firm based in Birmingham, Alabama, and Irish Trinity LLC have filed U.S. and international patent applications for what they call the Kerper-Bowron Method — a way to forecast and account for liabilities for service contracts and manufacturer warranties.
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Partners John Kerper and Lee Bowron were named as inventors for the method, which they said Friday provides a contract-level probabilistic cash-flow forecasting approach for service contracts and manufacturer warranties. The intellectual property is held by Irish Trinity LLC. Bradley Arant Boult Cummings LLP is serving as intellectual property counsel. The applications claim priority to an earlier U.S. provisional patent application filed in August 2025.
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They said the method replaces traditional aggregate earning curves with month-by-month projections that align directly with the revenue recognition standard ASC 606, as well as other standards such as ASC 460, IAS 37 and IFRS 17.
They said the method would improve precision and auditability for revenue recognition and reserve estimation and enable new lending applications.
At the same time, the firm announced that a
“This filing and the concurrent submission of the new paper mark important steps in advancing and protecting a method that brings contract-level precision to a large and complex market,” said Bowron in a statement Friday. “By generating reliable monthly cash-flow projections for every service contract and manufacturer warranty, the approach improves reserving accuracy and creates new pathways for capital efficiency and risk transfer.”
