John Jones, the lecturer of Paper P2 of the ACCA examination has recently introduced IAS 37 to the class. Based on the level of enthusiasm he has mandated a written assignment for all members of the class on the subject matter. The assignment was limited to an explanation of the following:

a. In accordance with IAS 37 define a provision and state the conditions required for the recognition of a provision within the accounts

b. Distinguish between a constructive obligation and a legal obligation.