Business, Legal & Accounting Glossary
A liability of uncertain timing or amount.
Similar: facilities, services, amenities, resource(s), equipment, arrangements, solutions, means, offering, funds, benefits, assistance, allowance(s), concession(s), opportunities, supplying, supply, providing, purveying, delivery, furnishing, equipping, giving, donation, allocation, distribution, presentation
Provision, generally, is to prepare in advance for an event that is projected to place in the future. In accounting, it is an amount charged against profits for a specific liability (for example: bad debts, depreciation or taxes). A liability may be known, but the amount is often uncertain. This uncertainty may lead to an adjustment in a later income statement once the final amount of the liability is ascertained.
We increased our provision for bad debts on credit sales going into the recession.
Financial institutions have to provision against loan losses.
civilian contractors were responsible for provisioning these armies
changing levels of transport provision
new contracts for the provision of services
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This glossary post was last updated: 9th April, 2020 | 1,256 Views.