Sisävara
Sisävara is a Finnish term that translates to "internal reserve" or "internal provision" and is most commonly encountered in the context of financial accounting and business. It refers to amounts set aside by a company to cover anticipated future losses or expenses that are not yet precisely determinable but are considered probable. These provisions are recognized when a company has a present obligation as a result of a past event, and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
Unlike a specific liability for which the amount and timing are known, a sisävara is more of
The concept of sisävara aligns with the prudence principle in accounting, which suggests that companies should