contingency reserve

Or contingent reserve

noun

Accounting.

1. an amount of money established from retained earnings to allow for unforeseen losses in business.

Word History and Origins

Origin of contingency reserve¹

First recorded in 1930–35

Example Sentences

Stored gas can only be treated as a contingency reserve in case of destruction of infrastructure and, as of today, Ukraine has met its entire winter demand with gas produced in the country.

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Toru Suehiro, senior economist at Daiwa Securities, said the LDP had probably been pressured by Komeito to draw up a supplementary budget rather than taking funds from the country’s contingency reserve.

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But Medicare officials also said they needed to build a “contingency reserve” for the possible cost of Aduhelm, the controversial drug approved by the U.S.

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The resolution would dedicate up to $50 million from the state’s contingency reserve fund to restoring the raises for the current school year.

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The new program, “the Bridge Fund,” uses the final $20 million from the city’s federal Cares Act funding and $80 million from a local contingency reserve.

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