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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

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.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.