Under IAS $37,$ a provision should be recognized when:

Choose the correct answer.

a$.$

An entity has a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

b$.$

An entity has a possible obligation that arises from past events and whose existence will be confirmed only by the occurrence or non$-$occurrence of one or more uncertain future events not wholly within the control of the entity.

c$.$

An entity has a present obligation as a result of a past event, it is possible that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

d$.$

An entity has a future obligation that arises from future events and whose existence will be confirmed only by the occurrence or non$-$occurrence of one or more uncertain future events wholly within the control of the entity.