provision

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Provision

Used in accounting as a charge for an estimated expense or loss.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

provision

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
References in periodicals archive ?
However, provisions of Kuwait Finance House and Gulf Bank stayed high; Gulf Bank's management, nevertheless stated that second half of 2010 will be much better in terms of provisions, hinting at a switch in provisioning regime.
Each system needs it own protection: backup and recovery, provisioning, replication, whatever.
The UBS combines patent-pending line powering technology, automated provisioning, and an environmentally hardened architecture to enable deployment of standard ADSL services to areas well beyond the 10,000-12,000 foot reach of existing DSL services, even to customers on "loaded" long-loop copper pairs and located behind legacy Digital Loop Carriers (DLCs).
A saw-tooth pattern in loss provisioning has developed in recent years as large banks have adopted a strategy of periodically declaring huge loss provisions virtually en masse, possibly on the theory that shareholders and others will more likely regard additions to loss provisions as one-time occurrences if one's major peers are also declaring large loss provisions.
However, this strategy assumes that tiering policies and practices for initial provisioning are in place, and that companies have a firm grasp on the metrics that determine when data evolves to require a lesser tier of storage service.
Business Layers, the eProvisioning Company is a leading provider of Provisioning solutions.