meaning of accounting cushion

accounting cushion meaning in Law Dictionary

whenever responsibility is overreported to safeguard against windfall later. It creates a soft landing in the event that real reduction is more than ended up being expected.

accounting cushion meaning in Business Dictionary

Overstatement (in a current accounting period) of a liability or cost (such as for instance debt) which is sustained in a later duration. Since a bigger balance can be acquired, it offers a 'soft landing' if the real quantity exceeds estimate.