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 ?
In addition, while the recognition clause may not be determinative of how the new location will ultimately be organized, it definitely will influence any decision regarding whether an accretion has occurred.
If the system is observed from a vertical direction, it's clear that the central part of the accretion disk emits intense X-rays.
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.
Despite these achievements, the rapid prototyping by material accretion methods present some technological limits, more or less important.
The amount recorded for an ARO in the current period impacts both depreciation expense and accretion expense for several years to come.
Had the black hole been rotating any slower, it couldn't have whipped nearby space-time into quite as strong a tornado, and the inner part of the accretion disk couldn't have extended quite so close to the event horizon--the boundary between the black hole's maw and the outside world.
Thereafter, depreciation expense is increased by $330 for each of the remaining seven years of the asset's life, and accretion expense is recorded each year by multiplying the carrying value of the ARO by the company's credit adjusted interest rate of 13%.
For example, strike-slip faults, such as the Tintina-Northern Rocky Mountain Trench, were associated with transcurrent displacement following accretion in the north.
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.
When ash is isolated from moose, annual accretion of shoot phytomass is 5 times more than in locations where ash is exposed to browsing; in leaves, phytomass is 10-12 times more than browsed ash.
One, the spatial gradients of football recruiting areas will conform to the distance accretion pattern.