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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 ?
Q: What should the father and son do in order to be able to claim that the property subject of the application belong to them by way of accretion?
It can be seen from Figure 7 that the change of initial ice accretion angle has a significant influence on the drag coefficient.
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 $0.09 basic and diluted net earnings per common share as compared to $1.0 million, or $0.18 basic and diluted net earnings per common share, for the same period one year ago.
The sellers are willing to assume that risk because they are confident that the NPI development pipeline will demonstrate its worth in the next two years and will provide significant accretion to fund unit holders.
Surface anti-icing keeps the airframe clear of ice accretion, eliminating the performance loss from pre-activation and inter-cycle ice accretion associated with deice protection systems.
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.