What does provision mean under IFRS?

Under IFRS (International Financial Reporting Standards), a provision is a liability of uncertain timing or amount. It is recognized when an entity has a present obligation (legal or constructive) resulting from past events, and it is probable that an outflow of resources will be required to settle that obligation. The amount recognized as a provision should be the best estimate of the expenditure required to settle the present obligation at the reporting date. Provisions are typically accounted for under IAS 37, "Provisions, Contingent Liabilities, and Contingent Assets."