Provision and liability

Hello sir hope this massage finds you well

Can you please assist me in an activity related to provision and liability chapter 13 fa2 Kaplan book

In each of these cases, state whether a provision should be recognised in the accounts for the year ended 30 June 20X4. Explain your reasons.

(a) Strong and Co manufactures and sells several products. It decides that it will rationalise its operations to concentrate on its most profitable product. This will mean closing one of its factories and making some staff redundant. It estimates that the cost of carrying out this plan will be $150,000. The owner of the business announces this plan to the workforce and to the local press on
25 June 20X4.

(b) Bright Windows is involved in a legal dispute with one of its customers. The customer has been injured, possibly as the result of faulty products sold by Bright Windows, and is claiming damages which have been estimated at $100,000. The owner of Bright Windows has been advised that there is a 40% chance that the claim will succeed. The case will not be heard until earvin 20X5.

As mentioned in book we must recognize a provision if it have this 3 characteristics
1: present obligation as result past event
2: probable chance for outflow of cash
And 3: is reliable estimate

In cause b it’s a legal obligation over the company and also it’s reliable estimated but because it’s not probable we don’t record it in financial statements

But l am confused About cause A it’s reliable estimated and it’s a kind of constructive obligation over company but nothing mention about weather it’s probable or not

Thank you

Abdul Rahman