there are so you know if you're being sued if a company's being sued for damages that um it may well be making a provision for the amount of money that it thinks it's going to have to pay out but in order for there to be a provision sarah as you well know there's a number of conditions that have to be met do you want to uh

There are indeed.

Yeah.

So IAS 37 sets out very clearly that three conditions, all three of these conditions must be met in order to recognise a provision.

And the first one is there has to be a present obligation.

I love the word obligation, by the way.

It's just so exact, you know.

There is an issue around what it takes to make that constructive obligation.