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Used in accounting as a charge for an estimated expense or loss.


the sums charged in DOUBLE ENTRY ACCOUNTS against a firm's PROFITS in anticipation of costs which are likely to arise in the future. The most common general provision made by firms is the provision for DOUBTFUL DEBTS which is established in anticipation of some customers not paying what they owe. In addition, a firm may make a specific provision against, say, a damages claim which is presently not yet settled. Provisions are aimed at trying to ensure that profits are not overstated by making sure that all a firm's costs are charged, even those whose precise amount is not yet certain. See REVALUATION PROVISION, DEFERRED TAX.
References in periodicals archive ?
Other features, such as the innovative automated provisioning feature, Network Managed Volumes, and asynchronous data replication over IP, provided tremendous advantages by improving disk utilization and reducing the cost of disaster recovery.
The carrier-class product features value-added content and subscriber applications, including automated provisioning and service qualification.
XIOtech's chief architect, Rob Peglar, believes that only integrated virtualization services will allow fully automated provisioning.

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