Provision (accounting)

Provision (accounting)

In financial accounting, provisions are precautions, or liabilities similar to accruals, for which the amount or probability of occurrence are not known. Typical examples are provisions for warranty costs and provision for taxes, or for the results of court ruling. Sometimes, the term reserve is used instead of term provision; such a use, however, is inconsistent with the terminology suggested by International Accounting Standards Board.Fact|date=January 2008

Provision: A present obligation which satisfies the rest of the definition of a liability, even if the amount of the obligation has to be estimated. (Framework)

ee also

* International Financial Reporting Standards
* IAS 37: Provisions, Contingent Liabilities and Contingent Assets


Wikimedia Foundation. 2010.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Provision — may refer to:* Provision (Accounting), a term for liability in accounting * Provision (musical group), a Texas synthpop band * Provision (military), food and other supplies needed in field * [http://www.provision.tv Provision] (commercial), free… …   Wikipedia

  • provision — pro‧vi‧sion [prəˈvɪʒn] noun 1. [uncountable] the act of providing something that someone needs: • the provision of childcare facilities at work • provision for people with disabilities 2. make provision( s) to make plans for future needs: make… …   Financial and business terms

  • accounting concepts — accounting principles; fundamental accounting concepts The basic theoretical ideas devised to support the activity of accounting. As accounting developed largely from a practical base, it has been argued that it lacks a theoretical framework.… …   Big dictionary of business and management

  • accounting concepts — accounting principles; = fundamental accounting concepts The basic theoretical ideas devised to support the activity of accounting. As accounting developed largely from a practical base, it has been argued that it lacks a theoretical framework.… …   Accounting dictionary

  • accounting — /euh kown ting/, n. 1. the theory and system of setting up, maintaining, and auditing the books of a firm; art of analyzing the financial position and operating results of a business house from a study of its sales, purchases, overhead, etc.… …   Universalium

  • provision — 1. A liability arising from the accounting treatment of *accrued expenses. A provision is shown as either a *short term or *long term liability in a *balance sheet, depending on the nature of the underlying circumstances that give rise to the… …   Auditor's dictionary

  • Accounting period — An accounting period is a period with reference to which United Kingdom corporation tax is charged. [Section 12 of the Income and Corporation Taxes Act 1988] It helps dictate when tax is paid on income and gains. An accounting period begins… …   Wikipedia

  • Provision For Credit Losses - PCL — In accounting, an estimation of potential losses that a company might experience due to credit risk. Provision for credit losses is an estimated amount to be lost and is treated as an expense on the company s financial statements. Companies that… …   Investment dictionary

  • provision for bad debts — A provision calculated to cover the debts during an accounting period that are not expected to be paid. A general provision, e.g. 2% of debtors, is not allowed as a deduction for tax purposes. A specific provision, in which specific debts are… …   Accounting dictionary

  • provision for bad debts — A provision calculated to cover the debts during an accounting period that are not expected to be paid. A general provision, e. g. 2% of debtors, is not allowed as a deduction for tax purposes. A specific provision, in which specific debts are… …   Big dictionary of business and management

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”