Tworzyć rezerwy

English translation: create provisions / form reserves

GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW)
Polish term or phrase:Tworzyć rezerwy
English translation:create provisions / form reserves
Entered by: mike23

09:17 May 2, 2014
Polish to English translations [PRO]
Bus/Financial - Investment / Securities / Cash flow
Polish term or phrase: Tworzyć rezerwy
Provisions czy reserves? I do tego czasownik: build up? create? accumulate? collect?

Spółka tworzy rezerwy, gdy istnieje aktualny, prawny lub zwyczajowo oczekiwany obowiązek, wynikający ze zdarzeń przeszłych, powstania prawdopodobieństwa zobowiązania do zapłaty, a kwota potencjalnej rezerwy jest kwotą istotną.

Dziękuję!
angniempol
Poland
Local time: 19:03
create provisions
Explanation:
create provisions

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Note added at 2 hrs (2014-05-02 11:23:40 GMT)
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A reserve is an appropriation of profits for a specific purpose. The most common reserve is a capital reserve, where funds are set aside to purchase fixed assets. By setting aside a reserve, the Board of Directors is segregating funds from the general operating usage of a company.

There is no actual need for a reserve, since there are rarely any legal restrictions on the use of funds that have been "reserved." Instead, management simply makes note of its future cash needs, and budgets for them appropriately. Thus, a reserve may be referred to in the financial statements, but not even be recorded within a separate account in the accounting system.

A provision is the amount of an expense or reduction in the value of an asset that an entity elects to recognize now in its accounting system, before it has precise information about the exact amount of the expense or asset reduction. For example, an entity routinely records provisions for bad debts, sales allowances, and inventory obsolescence. Less common provisions are for severance payments, asset impairments, and reorganization costs.

In short, a reserve is an appropriation of profit for a specific purpose, while a provision is a charge for an estimated expense.
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mike23
Poland
Local time: 19:03
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Summary of answers provided
3 +2create provisions
mike23
3form reserves
Frank Szmulowicz, Ph. D.
3create reserves
mike23


  

Answers


1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5
form reserves


Explanation:
Option.

Frank Szmulowicz, Ph. D.
United States
Local time: 14:03
Native speaker of: Native in EnglishEnglish, Native in PolishPolish
PRO pts in category: 20
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32 mins   confidence: Answerer confidence 3/5Answerer confidence 3/5
create reserves


Explanation:
create reserves

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Note added at 42 mins (2014-05-02 10:00:18 GMT)
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Differences Between Reserve And Provision
The following are the main differences between reserve and provision:

1. Mode Of Creation
Reserve is created against the charge of the profit and loss appropriation account. Provision is created against the charge of the profit and loss account.

2. Objective
Main objective of reserve is to strengthen the financial position and to meet future unknown losses and liabilities. Objective of provision is to meet known losses and liabilities the amount of which is not certain.

3. Accounting Treatment
Reserve is shown on debit side of profit and loss appropriation account and liabilities side of balance sheet. Provision is shown on debit side of profit and loss account and assets side of balance sheet as deduction from the concerned asset.

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Note added at 2 hrs (2014-05-02 11:22:22 GMT)
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http://accountlearning.blogspot.com/2010/07/differences-betw...
http://www.accountingtools.com/questions-and-answers/what-is...


mike23
Poland
Local time: 19:03
Native speaker of: Native in PolishPolish
PRO pts in category: 16
Login to enter a peer comment (or grade)

1 hr   confidence: Answerer confidence 3/5Answerer confidence 3/5 peer agreement (net): +2
create provisions


Explanation:
create provisions

--------------------------------------------------
Note added at 2 hrs (2014-05-02 11:23:40 GMT)
--------------------------------------------------

A reserve is an appropriation of profits for a specific purpose. The most common reserve is a capital reserve, where funds are set aside to purchase fixed assets. By setting aside a reserve, the Board of Directors is segregating funds from the general operating usage of a company.

There is no actual need for a reserve, since there are rarely any legal restrictions on the use of funds that have been "reserved." Instead, management simply makes note of its future cash needs, and budgets for them appropriately. Thus, a reserve may be referred to in the financial statements, but not even be recorded within a separate account in the accounting system.

A provision is the amount of an expense or reduction in the value of an asset that an entity elects to recognize now in its accounting system, before it has precise information about the exact amount of the expense or asset reduction. For example, an entity routinely records provisions for bad debts, sales allowances, and inventory obsolescence. Less common provisions are for severance payments, asset impairments, and reorganization costs.

In short, a reserve is an appropriation of profit for a specific purpose, while a provision is a charge for an estimated expense.
http://www.accountingtools.com/questions-and-answers/what-is...

mike23
Poland
Local time: 19:03
Native speaker of: Native in PolishPolish
PRO pts in category: 16
Grading comment
Selected automatically based on peer agreement.

Peer comments on this answer (and responses from the answerer)
agree  Swift Translation
39 mins
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agree  George BuLah (X)
1 day 2 hrs
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