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1. Financial reporting - balance sheet - liabilities.

A form of liability where there is uncertainty as to the amount and timing of final settlement.

Relevant accounting standards include IAS 37 and Section 21 of FRS 102.

2. Accounting - noun.

A reduction in the carrying amount, or net book value, of an asset to recognise an estimated reduction in value.

Examples include bad debt provisions and provisions for depreciation.

3. Accounting - verb.

To create an accounting provision, or increase the amount of a provision.

4. Law.

A significant individual part of a law, for example a tax anti-avoidance provision.

5. Contract law.

A significant individual part of a contract, for example a clause or a term in a contract.

See also