2.25 The company is currently growing and it is expected that in five years an additional factory will need to be built to meet product demand at a cost of $500 000. The directors wish to recognise an expense of $100 000 and a liability (provision for future expansion) for each of the next five years. Applying the principles in the Conceptual Framework or Proposed Framework, explain whether: the definition of a liability or expense is met the recognition criteria for a liability or expense are met.