PROVISION definition: 1. the act of providing something: 2. supplies of food and other necessary things: 3. a statement…. Learn more. While studying the balance sheet, students often might have noticed an entry known as provisions, which was listed on the liabilities side of a balance sheet. This article will help you in understanding the concept of a provision in accounting and the need for the creation of such a provision . Legal Terms Dictionary provision - Meaning in Law and Legal Documents, Examples and FAQs A provision , or clause, is a specific rule or condition included in a legal document that outlines what is expected or required from the parties involved. In normal language you would also say " clause " instead of " provision " The noun ' provision ' has its etymological origins in the Latin word 'provisio,' which is derived from 'pro,' meaning 'for' or 'in advance,' and 'videre,' meaning 'to see' or 'to foresee.' This etymology aptly captures the essence of a provision as something made available in advance to fulfill a particular need or requirement. It implies a sense of foresight and preparation, emphasizing the act of seeing ahead and making arrangements to address future necessities. Whether it's a specific ...
