provision

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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 classic literature ?
Here we built a snug, secure little hut, which we provisioned and stored with fuel for its di-minutive fireplace.
In the meantime I might suggest that you have the boats provisioned.
If he found the box he was to leave it there, to send out a small yacht provisioned for a voyage, which was to lie off Rutland Island, and to which we were to make our way, and finally to return to his duties.
She was provisioned with all the food they could spare for the six who were to go.
In a knee-jerk response, many administrators slammed on way too many storage devices and provisioned them all at once, just to keep from having to do it all over again in six months--or six weeks.