reserve for contingencies

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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References in periodicals archive ?
The Army also has to worry about replenishing stocks of pre-positioned equipment that is held in reserve for contingencies.
Equipment woes: Army to extend 'rapid fielding' effort for war-bound units, domestic needs
Spending is projected to show a 1% positive variance, which is equal to the reserve for contingencies.
Fitch Rates Carroll County, MD's $38.7MM GOs 'AAA'; Outlook Stable
5 million hurricane emergency reserve for contingencies and a sizable insurance reserve fund.
Fitch Affirms Clear Creek Independent School District, TX's GOs at `AA+'
4 million reserve for contingencies, the balance rises to $72.
Fitch Rates Palm Beach County School Board, Florida's $145.3MM COPs 'A+'; Outlook Stable
District officials report that they expect to close fiscal 2007 with balanced operations and to maintain at least the current level of general fund reserves, including the board reserve for contingencies.
Fitch Rates Palm Beach County School Board, Florida's $34.2MM Rfdg COPs 'A+'; Outlook Stable
By the end of 2002, HSBC had injected USD$800 million into Bital (renamed HSBC Mexico) to fully reserve for contingencies.
Fitch Assigns Ratings to HSBC Mexico
The district expects to close fiscal 2006 with balanced operations and to maintain at least the current level of general fund reserves, including the board reserve for contingencies.
Fitch Rates Palm Beach Schools, FL $225MM COPs 'A+'; Outlook Stable
This range represents our best present estimate of the total amount of cash that will be available for distribution to stockholders following liquidation of all remaining assets, satisfaction of liabilities, final closeout and dissolution expenses and an adequate reserve for contingencies.
Sobieski Bancorp Provides Update to Shareholders
After consideration of an adequate reserve for contingencies, the balance of these funds are available for a merger or acquisition transaction.
BNS Holding, Inc. Shareholders Re-Elect Directors at 2005 Annual Meeting

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