Under IAS 37, Provisions, Contingent Liabilities, and Contingent Assets, those liabilities for which amount or timing of expenditure is uncertain are deemed to be “provisions”. IAS 37 provides a comprehensive definition of the term “provision” It mandates, in a clear-cut manner, that a provision should be recognized only if: (1) The entity has a present obligation [legal or constructive] as a result of a past event; (2) It is probable that an outflow of resources embodying economic benefits will be [...]