Glossary entry (derived from question below)
русский term or phrase:
резервирование=резерв на убитки по займам?
английский translation:
provisions / reserves
Added to glossary by
nataliya79
Jan 18, 2016 19:24
8 yrs ago
2 viewers *
русский term
резервирование=резерв на убитки по займам?
русский => английский
Бизнес/Финансы
Финансы (в целом)
банковские бизнес-процессы
loan-loss reserve?
Традиционный подход управления дилеммой «риск - доходность» основывается на положении о том, что получение повышенного дохода связано с принятием повышенного риска. Это означает, что для получения более высокого уровня процентных доходов банку нужно сосредоточиться на кредитовании заемщиков из более рискованных отраслей. А оправдано ли это? Известно, что предоставление кредитов с высоким риском может обернуться для банка просроченной задолженностью и увеличением затрат на резервирование, что в итоге повлечет снижение доходности кредитного портфеля.
Традиционный подход управления дилеммой «риск - доходность» основывается на положении о том, что получение повышенного дохода связано с принятием повышенного риска. Это означает, что для получения более высокого уровня процентных доходов банку нужно сосредоточиться на кредитовании заемщиков из более рискованных отраслей. А оправдано ли это? Известно, что предоставление кредитов с высоким риском может обернуться для банка просроченной задолженностью и увеличением затрат на резервирование, что в итоге повлечет снижение доходности кредитного портфеля.
Proposed translations
(английский)
4 +4 | provisions / reserves | Oleg Lozinskiy |
Proposed translations
+4
8 мин
Selected
provisions / reserves
Difference between Provision and Reserve
1 Vinod Kumar November 9, 2014
.
Provision and reserves both are created for covering future losses. If we do not make, we can face lots of losses and it will be impossible for us to survive by tolerating such losses. So, as a good person, we need to create provisions and reserves. But both are different terms. You can not use one term for other all the times. Know its main differences for proper use of both accounting terms.
1. Meaning
Provision : Provision is created to show certain liability. For example, from past experience, we have know there will be 10% bad debts out of total debtor asset. So, out of total revenue, we deduct provision for doubtful debt as show it as current liability.
Reserve : Reserve is created to show unknown liability. For example, we are doing business in share market. It is risky business. So, we have created Risk for fluctuation in share market as $ 20,000. In past experience, there was no loss but still we are showing it as liability and deducting from our total revenue.
2. As per Law
Provision : As per law, to create provision is necessary. That is reason, we show it as expense side in profit and loss account.
Reserve : As per law, to create reserve is not necessary. That is the reason, we deduct it out of net profit by making profit and loss appropriation account.
3. Aim of Creation
Provision : Main aim is to create provision to cover loss due depreciation and bad debts. So, we can buy new fixed asset and invest more money in debtors.
Reserve : Main aim of reserve is to provide financial strength to the business.
4. Accounting Treatment
Provision : We debit the profit and loss account and credit the provision account.
Reserve : We debit the profit and loss appropriation account and credit reserve account.
5. Investment
Provision : Fund created with provision can not be invested outside the business
Reserve : Fund created with reserve can be invested outside the business.
6. Showing in Balance Sheet
Provision : It is shown in balance sheet by deducting specific asset.
Reserve : It is shown in the liability side of balance sheet under reserve and surplus heading.
7. Use of Dividend
Provision : It can not be used for giving dividend to shareholder.
Reserve : It can be used for giving dividend to shareholder.
8. Other Usage
Provision : It is created for covering specific loss, so use for same purpose. For example, provision for depreciation fund can only be used for buying new fixed asset.
Reserve : Reserve can be used by any other purpose.
http://www.svtuition.org/2014/11/difference-between-provisio...
1 Vinod Kumar November 9, 2014
.
Provision and reserves both are created for covering future losses. If we do not make, we can face lots of losses and it will be impossible for us to survive by tolerating such losses. So, as a good person, we need to create provisions and reserves. But both are different terms. You can not use one term for other all the times. Know its main differences for proper use of both accounting terms.
1. Meaning
Provision : Provision is created to show certain liability. For example, from past experience, we have know there will be 10% bad debts out of total debtor asset. So, out of total revenue, we deduct provision for doubtful debt as show it as current liability.
Reserve : Reserve is created to show unknown liability. For example, we are doing business in share market. It is risky business. So, we have created Risk for fluctuation in share market as $ 20,000. In past experience, there was no loss but still we are showing it as liability and deducting from our total revenue.
2. As per Law
Provision : As per law, to create provision is necessary. That is reason, we show it as expense side in profit and loss account.
Reserve : As per law, to create reserve is not necessary. That is the reason, we deduct it out of net profit by making profit and loss appropriation account.
3. Aim of Creation
Provision : Main aim is to create provision to cover loss due depreciation and bad debts. So, we can buy new fixed asset and invest more money in debtors.
Reserve : Main aim of reserve is to provide financial strength to the business.
4. Accounting Treatment
Provision : We debit the profit and loss account and credit the provision account.
Reserve : We debit the profit and loss appropriation account and credit reserve account.
5. Investment
Provision : Fund created with provision can not be invested outside the business
Reserve : Fund created with reserve can be invested outside the business.
6. Showing in Balance Sheet
Provision : It is shown in balance sheet by deducting specific asset.
Reserve : It is shown in the liability side of balance sheet under reserve and surplus heading.
7. Use of Dividend
Provision : It can not be used for giving dividend to shareholder.
Reserve : It can be used for giving dividend to shareholder.
8. Other Usage
Provision : It is created for covering specific loss, so use for same purpose. For example, provision for depreciation fund can only be used for buying new fixed asset.
Reserve : Reserve can be used by any other purpose.
http://www.svtuition.org/2014/11/difference-between-provisio...
Peer comment(s):
agree |
Yakov Katsman
6 мин
|
Спасибо, Яков!
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agree |
Ilan Rubin (X)
: Oleg, in this case you gave the right answer, but I totally disagree with this info that provisions and reserves are different. In IFRS accounts 'loan loss reserves' or 'loan loss provisions' are used interchangeably
44 мин
|
Thank you for your support, ILAN! BTW, where have you noticed ANY reference to IFRS? Most probably, the source text was written by those who are used to RAS/RSA/RAP/Russian GAAP (aka РСБУ).
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agree |
Anzhelika Kuznetsova
: and what Ilan said.
1 час
|
Спасибо, Анжелика! (И, пожалуйста, посмотрите 'ЗАПИСИ В ПАНЕЛИ' (конечно же - 'обсуждения').
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agree |
Elena Kuznetsova
11 час
|
Спасибо, Елена!
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4 KudoZ points awarded for this answer.
Comment: "Thank you."
Discussion
Have you (to claim what you claim)?
that would be the source text in its entirety, on the one hand, and the background information, pertinent thereto, such as whether or not the IFRS apply, on the other hand.
hope, that helps.
But...
Could you, please, explain to me what a 'FULL CONTEXt' is, as I am really at a loss what this could be...
my remark here rather referred to the need of considering the full context, to which only the asker has access;), as well as the target audience etc, to make an informed decision on which of the two terms to use.
When/if/as soon as ALL THE STANDARDS are harmoniz(s)ed (and 'made universal' in all possible languages of the PEOPLE living on the planet Earth), there will be NO NEED for any translators/interpreters (including legislators/executives/judges/lawyers/human rights activists, etc., etc.)...
there has been a common transition to the IFRS by the countries, previously using their NASs. so, unless the text comes from the pre-IFRS era or from a non-IFRS location, the terms in question can indeed be used interchangeably. at least, from my extensive practice in the field -- they are.
And when you translate RAS line items into English you can translate резервы either way