GLOSSARY ENTRY (DERIVED FROM QUESTION BELOW) | ||||||
---|---|---|---|---|---|---|
|
09:17 May 2, 2014 |
Polish to English translations [PRO] Bus/Financial - Investment / Securities / Cash flow | |||||||
---|---|---|---|---|---|---|---|
|
| ||||||
| Selected response from: mike23 Poland Local time: 19:03 | ||||||
Grading comment
|
Summary of answers provided | ||||
---|---|---|---|---|
3 +2 | create provisions |
| ||
3 | form reserves |
| ||
3 | create reserves |
|
form reserves Explanation: Option. |
| |
Login to enter a peer comment (or grade) |
create reserves Explanation: create reserves -------------------------------------------------- Note added at 42 mins (2014-05-02 10:00:18 GMT) -------------------------------------------------- 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. -------------------------------------------------- Note added at 2 hrs (2014-05-02 11:22:22 GMT) -------------------------------------------------- http://accountlearning.blogspot.com/2010/07/differences-betw... http://www.accountingtools.com/questions-and-answers/what-is... |
| |
Login to enter a peer comment (or grade) |
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... |
| |
Grading comment
| ||
Login or register (free and only takes a few minutes) to participate in this question. You will also have access to many other tools and opportunities designed for those who have language-related jobs (or are passionate about them). Participation is free and the site has a strict confidentiality policy. KudoZ™ translation helpThe KudoZ network provides a framework for translators and others to assist each other with translations or explanations of terms and short phrases.
See also: Search millions of term translations Your current localization setting
English
Select a language Close search
|