Glossary entry (derived from question below)
Polish term or phrase:
Tworzyć rezerwy
English translation:
create provisions / form reserves
Added to glossary by
mike23
May 2, 2014 09:17
10 yrs ago
6 viewers *
Polish term
Tworzyć rezerwy
Polish to English
Bus/Financial
Investment / Securities
Cash flow
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!
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!
Proposed translations
(English)
3 +2 | create provisions | mike23 |
3 | form reserves | Frank Szmulowicz, Ph. D. |
3 | create reserves | mike23 |
Change log
May 16, 2014 04:29: mike23 Created KOG entry
Proposed translations
+2
1 hr
Selected
create provisions
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.
http://www.accountingtools.com/questions-and-answers/what-is...
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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.
http://www.accountingtools.com/questions-and-answers/what-is...
4 KudoZ points awarded for this answer.
Comment: "Selected automatically based on peer agreement."
1 hr
form reserves
Option.
32 mins
create reserves
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...
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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...
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