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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.


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.


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.


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 ?
After carefully examining several possibilities, the team concluded that huge amounts of gas are rapidly falling onto "little monster" black holes in each of these ULXs, which produces a dense disk wind flowing away from the supercritical accretion disk.
They found that only two types of accretion models, both of which involve the most strongly interacting binaries, could create these jetted pre-planetary nebulae.
These methods and other ones under development assures for the rapid prototyping by material accretion an increasing rate of its diffusion, the spread of these new methods into the broader market place, and of its infusion, the process of developing applications of these new methods to their maximum potential.
The amount recorded for an ARO in the current period impacts both depreciation expense and accretion expense for several years to come.
These blue and red shifts broaden the spectrum of X rays emitted from the iron atoms in the accretion disk.
Subsequently, the company should have recorded annual accretion expense of 13% of the current carrying value of the liability and additional depreciation expense of $330 each year.
Results: Calcium supplementation significantly influenced bone accretion in young females during the pubertal growth spurt.
If strata are correlative from one to the other, such relationships may indicate there was no major terrane; if they are not correlative, the accretion boundaries are cryptic.
Although this accumulation is most conspicuous in the tonsils, progressive accretion of these esters also occurs in nerves (neuropathy) and vessels (atherosclerosis).
This book will make more comprehensible how a slow accretion of architectural plans, political decisions, and the mundane processes of requisitions, orders, shipments and lists can create the unthinkable.
Cysteine ought to routinely be added to amino acid solutions given starting in the first hours of life to enhance protein accretion in extremely-low-birth-weight babies, Dr.