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End-of-Year Convention |
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End-of-year convention Treating cash flows as if they occur at the end of a year as opposed to the date convention. Under the end-of-year convention, the present is time 0, the end of year 1 occurs one year hence; and so on. End-of-Year Convention In accounting, treating cash flows as if they occurred only on the last day of the fiscal year. This applies to both incoming and outgoing cash flows. The end-of-year convention affects the calculation and discounting of future cash flows. It is the opposite of the dates convention, which recognizes cash flows on the date they are received or paid. How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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