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How “Best” to capture State Transitions in a formal software requirements specification

Suppose you have a state transition diagram. What is the best way to “Formally” write requirement(s) that capture the state transitions depicted in the diagram. Over the years I have used two approaches and both work, but each time I work with new people there seems to be disagreements on how best to “Formally” capture the state transitions. “Formally” capture is required because traceability matrices are used that map to “Test Cases” and “Software Units (ie. Classes and/or Modules)”.