- This article reverse-engineers the flag circuits in the ARM1 processor, explaining in detail how the flags are generate, controlled, and used. Condition flags are a key part of most computers, since they allow the computer to change what it does based on various conditions. The flags keep track of conditions such as a value being negative or zero or an overflow happening. Processors may also have status flags to control modes such as running in user mode versus protected (kernel) execution. The ARM1 processor stores these flags in a special register called the Processor Status Register (PSR).