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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 ?
The statements in this release relating to the expected non-GAAP diluted earnings per share in the March 2015 quarter, the annual diluted earnings per share accretion from our refinancing activities, the expected reduction in our diluted share count based on an assumed stock price, our updated Non-GAAP earnings per share guidance, the expected GAAP impact of our refinancing activities, the financing activities driving expected earnings accretion and providing additional untapped borrowing capability for general corporate purposes including potential future acquisition activities are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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 then compared the requirements to specific existing accretion models, which have predicted specific power and mass flow rates.
Thus we found that the eclipse duration gradually decreased as the superoutburst progressed and the star faded, indicating that the accretion disc was shrinking from the outside inwards as material drained from it.
Accretion and Ejection in AGN Conference (2009: Como, Italy) Ed.
After adjusting for dividends and accretion on preferred stock, net earnings available to common shareholders for the three months ended June 30, 2010 were $515,000, or $0.
Since 1982, when Chuck Hull invented stereolithography (figure1), have been developed many methods of rapid prototyping by material accretion, which involve building a part by defining its geometry layer by layer, but between the main methods may be mentioned as follows: stereolithography, selective laser-sintering, laminated object manufacturing, fused deposition modeling (Ciucescu & Bontas, 1998).
Because of the great subjectivity required in determining the fair value of an asset retirement obligation (ARO) and its subsequent accretion expense under SFAS No.
Most material drawn toward a black hole doesn't dive directly in but forms a swirling disk, called an accretion disk, around the hole.
The same cannot be said, however, of the threat posed by the federal government's accretion of power to detain citizens on a whim.
Research: The point of the study was to evaluate the long-term effects of calcium supplementation on bone accretion among females from childhood to young adulthood.
The nature and age of accreted terranes provide insight into processes and paleogeography preceding terrane accretion.