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A provision in accounting refers to an amount that has been set aside from the profits of the business in order to meet an unanticipated loss. All business units set aside some part of their current year's profits in order to "provide" for some certain unforeseen financial crunch that may arise in the next operating cycle. They are created following the prudence concept of accounting, which states that a business should account/provide for all possible contingencies and potential losses. The meaning of PROVISION is the act or process of providing. How to use provision in a sentence. PROVISION definition: 1. the act of providing something: 2. supplies of food and other necessary things: 3. a statement…. Learn more. Learn the meaning, pronunciation and usage of the word provision in English. Find out how to use it as a noun in different contexts, such as supplying something, making preparations, or referring to a legal condition.
