Discuss the accounting treatment of provisions and contingencies under IAS $37$ or ASC $450.$ Explain the recognition criteria for provisions, including the estimation of amounts and the disclosure requirements for contingencies.

Provisions and contingencies involve recognizing potential liabilities and uncertainties. Describe the criteria for recognizing provisions under IAS $37$ or ASC $450,$ including the requirement for a present obligation, probable outflow of resources, and reliable estimation of the amount. Explain how provisions are measured and reported on financial statements. Discuss the disclosure requirements for contingencies, including information about the nature, timing, and amount of potential liabilities, and how these disclosures provide insight into potential risks and uncertainties.