Question 2: Conceptual Framework (20 marks) Reshucturing is an action taken by a company to significantly modify the financial and operational aspects of the company. A restructuring can comprise numerous costly activities, including termination or relocation of a business, a change in management structure and layoffs. IFRS (1A5 37.?2 specifically) require companies to recognize restructuring provisions (i.e., liability) and restructuring costs (i.e., expense] hefgze the restructuring actually occurs, when \"a detailed formal plan is adopted and has started being implemented, or announced to those affected\". Requirements: Using the conceptual framework, discuss a) What are the denition of liability and the recognition criteria of liability? b} Based on your discussion of part a), why does IAS 37.72 require a provision {i.e., liability} to be recognized when a company plans to close their business locations (i.e., before the actual closure) and only when \"a detailed formal plan is adopted and has started being implemented, or announced to those affected\"? C} If you are a shareholder of the company, how does recognizing restructuring provisions and restructuring costs in cominance with IFRS improve the usefulness of the nancial statement to you? Use the qualitative characteristics (no less than three} to form your discussion