accretion

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Accretion (of a discount)

In portfolio accounting, a straight-line accumulation of capital gains on a discount bond in anticipation of receipt of par at maturity.

Accretion

1. The capital gains a bondholder receives when he/she buys a bond at a discount from par and expects it to mature at par. For example, if one buys a bond at 90% of par, the accretion is 10%. Unless the bond is tax exempt, accretion is taxable each year even though the bondholder does not actually receive any payments until maturity. See also: Imputed value.

2. The addition of value as the result of an outside event. For example, an accretive acquisition occurs if an acquisition increases a company's earnings per share.

accretion

The accumulation of capital gains on discount bonds with the expectation that the securities will be redeemed at maturity. Excluding municipals, the amount of annual accretion is taxable on an original-issue discount bond even though only a small amount of interest or no interest at all is paid each year. See also imputed interest.

accretion

The addition of land through natural causes, such as gradual silting.You will often see accretion used to also describe the addition of land because of receding waters, but this is more properly called dereliction.
References in periodicals archive ?
As this matter swirls around the event horizon of a black hole it heats up and radiates energy - as an accretion disc.
Results have also demonstrated that the vast majority of the X-ray radiation present in the universe is produced in these accretion discs surrounding supermassive black holes, with a small proportion produced by all other objects, including galaxies and neutron stars.
A much more flexible and rich approach is to be found in the work of Carlo Scarpa, who for instance in Verona Castelvecchio restored with respect for the old, and was concerned to cherish (and often emphasise) accretions to the original fabric.