Business Pitch Dictionary by pitch.dog
Assets, liabilities & equity · Working

Provision

Also called: accounting provision

ELI5

A liability of uncertain timing or amount recognised under applicable criteria.

Used in conversation

“Can we state who receives the right created by provision, and when it applies?”

Pitch context

You will see “Provision” in financial models, budgets, board packs and investor materials when the discussion reaches assets, liabilities & equity.

Why it matters: In assets, liabilities & equity, different calculation boundaries, periods or accounting treatments can change the number and the decision.

Caution

Calculation, recognition and disclosure can vary by accounting framework, company policy and reporting context.

Sources & evidence · 4

Direct term-level sources and supporting source families.