What is hensættelser (provisions)?

In short

Hensættelser are amounts set aside for obligations that are likely but uncertain in amount or timing — warranty work, lawsuits or deferred tax, for example.

In practice

A provision hits the result as soon as the obligation arises — not when the bill is eventually paid. It sits on the liabilities side between equity and debt, and is released or adjusted once the matter is settled.

Related terms

• Passiver (liabilities & equity)
• Selskabsskat (corporate tax)
• Årsrapport (annual report)
• See every term in the dictionary

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