ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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PROVISION FOR CREDIT LOSSES Definition
PROVISION FOR CREDIT LOSSES, in lending institutions, is a charge to income which represents an expense deemed adequate by management given the composition of a bank's credit portfolios, their probability of default, the economic environment and the allowance for credit losses already established. Specific provisions are established to reduce the book value of specific assets (primarily loans) to establish the amount expected to be recovered on the loans. See also PROVISION.
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OPERATING PROFIT is Gross Profit minus Operating Expenses.
CARRYING VALUE, also known as "book value", it is a companys total assets minus intangible assets and liabilities, such as debt.
