Meaning of "incurred" - the Privy Council decision in the Mitsubishi Case

This interpretation statement considers the Privy Council decision Commissioner of Inland Revenue v Mitsubishi Motors New Zealand Limited (1995) 17 NZTC 12,351 ("Mitsubishi"). That case dealt with the timing of deductions and, in particular, the meaning of "incurred" (as it now appears in section BD 2(1)(b)) in the context of warranty expenditure.