(b) Well explained answer only will be getting full marks these are key points. The 'Why' must be quoted from the question to support the points or assumed in relevant scenarios. 1. There is a constructive obligation at the end of the reporting period. A provision of RM375,000 should be made. 2. There is no obligation at the end of the reporting period. The decision could be reversed. No provision should be made. 3. A provision equal to the present value of RM5 million is required in relation to the rectification costs in the first country. Although here is no legal obligation in relation to the other company, a provision equal to the present value of RM10 million should be recognized if the company's behavior has created a constructive obligation. 4. There is no present obligation and therefore no provision should be made. Provision for future operating costs is not allowed by MFRS137