accretion expense造句

• In accounting, accretion expense is the expense created when updating the present value of an instrument.
• Typically, a company prorates its accretion expense based on the amount of time that it maintained the underlying commitment during the period reported.
• A higher accretion expense should be recognized for each successive term of 365 days, so the accretion expense for the 365 days starting after the first 365 days is $ 143.
• A higher accretion expense should be recognized for each successive term of 365 days, so the accretion expense for the 365 days starting after the first 365 days is $ 143.
• For example, if you originally recognize the present value of a liability at $ 650, which has a future value of $ 1000, every year you must increase the PV of the liability as it comes closer to its FV . If the above liability, for example an asset retirement obligation, had a discount rate of 10 %, accretion expense in Yr . 1 would be $ 65 and the PV of the liability at the end of Yr . 1 would be $ 715.
• The present value of this cost is $ 40, 275.96 / ( 1.09 ^ 40 ) = $ 1, 282.29 . At installation of the tanks, the company books an asset retirement cost ( asset ) and an asset retirement obligation ( liability ) of $ 1, 282.29 . The asset is accreted ( interest for each period is calculated and added to the balance ), using the interest method . ( Accretion expense would be $ 115.41 the first year, $ 125.79 the second year, etc . ) Over the 40 year life, the liability thereby increases to $ 40, 275.96.