reserve for contingencies

(redirected from Contingency Reserve)

Reserve for Contingencies

A company's retained earnings that are not reinvested but set aside to protect against future losses. A company may set up a reserve for contingencies when it is performing well to guard against the risk that it may eventually perform poorly. A reserve for contingencies allows a company to maintain its operations smoothly even when it has suffered an operating loss.

reserve for contingencies

A part of retained earnings that are set aside for potential future losses. For example, a firm may establish a reserve account to cover the possibility of losing a lawsuit to which it is a party.
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for the year ended December 31, 2014, excluding a loss contingency reserve and debt refinancing charges, was $792 million, or $3.
While the bank is envisaged to have an initial focus on BRICS projects and might later expand its activity, the Contingency Reserve Arrangement will serve exclusively the needs of the five countries.
As we announced at the time, last year s MYEFO corrected this legacy issue by provisioning in the Contingency Reserve for what had been unfunded redundancies associated with these reductions.
The reallocation will come from the university's contingency reserve funds, intended to meet necessary expenses that surface after the end of the traditional budgeting process," the university said in a news release.
Board Chairman Omar Al-Ghanim told the press; the bank has increased its contingency reserve to KD 159 million, adding that the bank's total assets reached KD 4.
Of course there is a very powerful moral case for the action we are taking in Libya, it's right that we find those resources precisely from the contingency reserve that we have," Alexander added.
Labour responded, "The Cabinet Paper repeats what the Finance Minister, Sue Essex, has said in plenary, that each time the Government publishes a three-year spending plan it intends to maintain as a contingency reserve 1% in year one of the plans, 2% in year two and 3% in year three.
The amounts contributed to the contingency reserve are used to pay extraordinary losses, if any, and are released into surplus after 20 years, which is the time period when most of the risk is deemed to have passed, he said.
an additional $2 billion will be infused into the health care system for the fiscal year 200304 if the Minister of Finance determines in January 2003 that "there will be a sufficient surplus above the normal contingency reserve to permit such an investment.
But Home Secretary David Blunkett will also be allowed to claim up to pounds 100 million more from a special contingency reserve.
The remaining $950,000 for the project will be paid from the city's legal contingency reserve.
Temporary differences include unrealized gains and losses and nonadmitted assets, but do not include differences between SAP and tax for asset valuation reserves, interest maintenance reserves, Schedule F penalties, policyholder surplus attributable to stock life insurance companies prior to 1984 and, in the case of a mortgage guaranty insurer, amounts attributable to a statutory contingency reserve to the extent "tax and loss" bonds have been purchased.

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