What Are Basic Provisions?

What does general provision mean?

General provisions are balance sheet items representing funds set aside by a company as assets to pay for anticipated future losses.

The amounts set aside are based on estimates of future losses.

Lenders are required to set up general provisions every time they make a loan in case borrowers default..

What is provision example?

Examples of provisions include accruals, asset impairments, bad debts, depreciation, doubtful debts, guarantees (product warranties), income taxes, inventory obsolescence, pension, restructuring liabilities and sales allowances. Often provision amounts need to be estimated.

How do you use provision?

Provisions sentence examplesRoyal officials must pay for the corn and provisions which they take on behalf of the king. … The princess too had prepared provisions for Pierre’s journey. … There are a number of unusual provisions in the constitution of Nevada. … These provisions were later strengthened by Clement VII.More items…

What is divine provision?

Divine provision is provision for life. God’s purpose is that we should live life – His life – in all its fullness and abundance. The material and financial things of this world are simply the means to this end. They’re a tool to empower us, one small part of His divine provision.

What is the meaning of provision store?

A provision is a store or supply of something, like food or clothing. This noun can also describe the planning you do for “when something happens.”

How are provisions treated in accounting?

A provision for anticipated expenditure is to be disclosed under the head ‘current liabilities and provisions’ whereas a provision for an anticipated loss (provision for doubtful debts) is to be shown as a deduction from the asset which is likely to result in a loss.

What are main provisions?

noun. a clause in a legal instrument, a law, etc., providing for a particular matter; stipulation; proviso. the providing or supplying of something, especially of food or other necessities.

What are general provisions in law?

Laws or regulations that apply to all contracts of certain type. Regulations applicable only to a particular contract are called Special provisions. RELATED TERMS.

What is existing provision?

existing provision means a provision contained in any Act (whether public general or local) passed, or in subordinate legislation made, before the relevant date; + New List.

What are the types of provisions?

Types of provision in accountingRestructuring Liabilities.Provisions for bad debts.Guarantees.Depreciation.Accruals.Pension.

How does a provision work?

Definition: A provision is an amount set aside for the probable, but uncertain, economic obligations of an enterprise. A provision is an amount that you put in aside in your accounts to cover a future liability. … When accounting, provisions are recognized on the balance sheet and then expensed on the income statement.

What is another word for provision?

Provision Synonyms – WordHippo Thesaurus….What is another word for provision?conditionstipulationprovisorequirementreservationqualificationrideragreementrestrictionspecification39 more rows

What are the characteristics of a provision?

A provision shall be recognized if the following criteria are fulfilled:an entity has a present obligation as a result of a past event;it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation;a reliable estimate can be made of the amount of the obligation.More items…

What are provisions?

a clause in a legal instrument, a law, etc., providing for a particular matter; stipulation; proviso. the providing or supplying of something, especially of food or other necessities. arrangement or preparation beforehand, as for the doing of something, the meeting of needs, the supplying of means, etc.

What does non provision mean?

n. 1 the act of supplying or providing food, etc. 2 something that is supplied or provided. 3 preparations made beforehand (esp.

Where have these provisions come from here provisions means?

Here the word provisions means clothes. there are some basic necessities of life.