contingency reserve

American  

Or contingent reserve

noun

Accounting.

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

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Etymology

Origin of contingency reserve

First recorded in 1930–35

Example Sentences

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.

From Reuters • Apr. 21, 2022

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.

From Washington Post • Nov. 18, 2020

Schwab said it increased its contingency reserve by $172 million pretax, reducing first quarter profit by about $105 million, or 9 cents a share.

From Reuters • Apr. 20, 2010

The company said it will continue to evaluate the size of its contingency reserve pending the final resolution of the class-action suit, and warned its total liability related to YieldPlus could be still higher.

From Reuters • Apr. 20, 2010

Another $7,500,000 was transferred to a contingency reserve.

From Time Magazine Archive