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In financial accounting, provisions are liabilities similar to accruals, for which the amount or probability of occurrence are not known. Typical examples are provisions for warranty costs and provision for taxes, or for the results of court ruling. Sometimes, the term reserve is used instead of term provision; such a use, however, is inconsistent with the terminology suggested by International Accounting Standards Board.^{citation needed}

Provision: A present obligation which satisfies the rest of the definition of a liability, even if the amount of the obligation has to be estimated. (Framework)

See also

• International Financial Reporting Standards
• IAS 37: Provisions, Contingent Liabilities and Contingent Assets

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