provision


Also found in: Dictionary, Thesaurus, Legal, Financial, Encyclopedia, Wikipedia.
Related to provision: Provision for Bad Debts

provision

A term which, as used in UK medical practice, corresponds to one or more legal conditions/provisos written into a contract or financial arrangement, when a particular type of expense is anticipated but its actual and final cost is uncertain—e.g., clinical negligence liability.

Provisions are included in contracts to comply with the accounting principle of prudence. An estimate of the likely expense is charged to the income and expenditure account—for the Department, to the Operating Cost Statement—as soon as the issue comes to light, even though a cash payout might not occur for many years, if at all. The expense is matched by a balance-sheet provision entry showing the potential liability to the organisation.
References in periodicals archive ?
In February, the Clinton administration released economic proposals that contain a provision to modify the tax code's earnings stripping provisions.
Where a provision occurred only in a state law and not at the federal level, that state law was then used as the base provision.
One provision expands the requirements for registration of certain corporate tax shelters with the IRS by including plans and transactions subject to confIdentiality agreements, and also toughens the penalties that may be assessed for failure to comply with the revised registration and investor disclosure provisions.
This provision may also impact salaries earned by workers in industries that use independent contractors that receive 1099s instead of W-2s--thus making the cost ineligible for the manufacturing deduction.
In addition, we oppose the penalty provision for "noneconomic transactions" set forth in section 512 of the bill as creating unnecessary complexity and confusion.
For instance, Section 215, better known as the "library records" provision, is scheduled to sunset unless Congress votes to reauthorize it.
In the iSCSI domain, we bring the LUNs in and provision, then pop you into the access control zone that's parallel to zoning.
i) a choice of law provision that makes the construction contract subject to the laws of another state; or that requires any litigation or arbitration arising from a contract to be conducted in another state is void (although materialmen are exempt from this requirement); and
Does a book value provision control for estate and gift tax purposes (in 1993 and 1994)?
For example, she cites the provision that broadens the definition of a home office, making it easier for the growing number of home-based workers to deduct related costs.
President Clinton signed a $265 billion defense authorization bill Saturday while promising he would not enforce a "blatantly discriminatory" provision of the bill requiring the Pentagon to discharge troops who have the virus that causes AIDS.
For example, a service contract includes a contract for the provision of management services for .