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.
Segen's Medical Dictionary. © 2012 Farlex, Inc. All rights reserved.
References in classic literature ?
NEW PROVISIONS therein are also expressly authorized.
The clause I now read is as plainly written in the Constitution as any other of its provisions:
He delayed approaching it as long as possible, in order to avoid driving off the buffaloes, which would be needed for winter provisions. He accordingly moved forward but slowly, merely as the want of game and grass obliged him to shift his position.
A cache is a term common among traders and hunters, to designate a hiding-place for provisions and effects.
'The administrative sector has a provision of N27.3 billion with a recurrent provision of N14.4 billion and capital provision of N12.9 billion
The GCC banking sector is expected to show an increase in provision in the coming quarters, related mostly to those trickling in from UAE.
During the 1990s, tax practitioners at national and international CPA firms concentrated on selling tax planning strategies that affected their clients' financial statements, either through a reduction in the income tax provision or an increase in pretax income.
As such, a strict and literal interpretation of a policy provision requiring that disability be immediate, or from the date of the accident, or follow the accident within a specified number of days, would lead to an unjust result and would unreasonably restrict the coverage of the policy.
The provision applies to payments for goods and services under government contracts, as well as payments to any person for a product provided to a government entity (such as Medicare or certain grants).
They contended, however, that Madison's conduct in repeatedly accepting late rent payments constituted a waiver of the rent payment provision of the lease that required payment to be made by the first of each month.
(This provision was set to expire for expenditures paid or incurred on or before December 31, 2005.) To qualify the expenditures must be made in connection with a qualified containment site located in the GO Zone and be paid or incurred between August 28, 2005, and January 1, 2008.