Accretion of Discount

Accretion of Discount

The increase in value of a security or other instrument as it approaches maturity. For example, suppose one buys a bond with a face value of $100 and pays $89. Because one is guaranteed to receive $100 when the bond matures, its value gradually increases between the purchase date and maturity. This increase is called the accretion of discount.
Mentioned in ?
References in periodicals archive ?
For the three months ended March 31, 2015, preferred dividends on the Series B Preferred Stock and accretion of discount reduced net income attributable to common stockholders by USD214,000.
Net loss and comprehensive loss for the quarter was USD597,383, compared to USD981,600 for the previous-year quarter, including non-cash charges for interest and accretion of discount on convertible debentures in the amount of USD238,867 and USD171,319 respectively.
The accretion of discount on issued debt, which directly impacts the gain or loss on its later extinguishment.
The final regulations provide guidance to holders and issuers of OID instruments as to when (and how much) income should be reported for accretion of discount or deducted as interest or amortized premium.
This reflects our policy of recording interest income, adjusted for amortization of premium and accretion of discount, on an accrual basis.
Excluding preferred stock dividends paid and accretion of discount on common stock warrants issued to the US Treasury, the company has reported a net income of USD1.
After adjusting for dividends and the accretion of discount on preferred stock under the Capital Purchase Program, net income available to common shareholders was $531,000, or $.
The Authority historically has evaluated its operating performance with the non-GAAP measure, Adjusted EBITDA, which as used in this press release, represents earnings before interest, depreciation and amortization, workforce reduction severance, pre-opening costs and expenses, impairment of Project Horizon, reassessment and accretion of discount to the relinquishment liability, loss on early extinguishment of debt, write-off of debt issuance costs, other non-operating income and expense and loss attributable to non-controlling interests.
Comprehensive loss for the third quarter of 2011 was $271,712 compared to $387,222 for the same period in 2010, including non-cash charges for interest and accretion of discount on convertible debentures in the amount of $243,455 (Q3 2010: $229,454).
Comprehensive income for the first quarter of 2011 was $93,770 compared to comprehensive loss of $673,505 for the same period in 2010, including a non-cash gain on extinguishment of convertible debentures in the amount of $716,390 (Q1 2010: nil) and non-cash charges for interest and accretion of discount on convertible debentures in the amount of $261,646 (Q1 2010: $201,095).
Accretion of discount on asset retirement obligations is expected to be $2 million to $4 million.
Taxable and GAAP earnings will typically differ due to items such as differences in premium amortization, accretion of discounts, unrealized and realized gains and losses, credit loss recognition, and non-deductible general and administrative expenses.