Treating cash flows as being received on exact dates-date 0, date 1, and so forth-as opposed to the end-of-year convention.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
In accounting, the practice of recognizing cash flows on the date they actually occur. This applies to both incoming and outgoing cash flows. The dates convention affects the calculation and discounting of future cash flows. It is the opposite of the end-of-year convention, which treats cash flows as if they occurred on the last day of the fiscal year.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved