$1.$ Real Madrid Ltd acquired $80000$ ordinary shares in Man United Ltd on $1$ March $2024$ for R$40500000.$The acquisition price would be paid on $28$ February $2025.$Man United Ltd manufactures exclusive furniture pieces.

$2.$ The carrying amounts of all of the assets and liabilities of Man United Ltd were equal to their fair values except for the following:Inventory $2250000$Property, plant and equipment $11250000$ Land $25000000$

$3.$ Real Madrid Ltd did not recognise a contingent liability of R$2000000$ on $29$ February $2024.$ This is of a capital nature and hence is not an allowable tax deduction. This amount meets the recognition criteria of IFRS $3.$

Briefly explain the recognition criteria of contingent liabilities in terms of IFRS $3.$ Include in your explanation how this differs from the prescriptions of lAS $37.$Provisions, Contingent Liabilities and Contingent Assets.