DEFINITION of 'Accretion'

1. Asset growth through addition or expansion.

2. In reference to discount bonds, it describes the accumulation of value until maturity.


1. Accretion can occur through a company's internal development or by way of mergers and acquisitions.

2. Bonds at discount are sold below face value and mature at par. In the duration between the bond's issuance and maturity, no additional value is actually being accumulated within the bond but accretion occurs with the paper or implied capital gain.

  1. Discount Bond

    A bond that is issued for less than its par (or face) value, ...
  2. Depreciation

    1. A method of allocating the cost of a tangible asset over its ...
  3. Accretive Acquisition

    An acquisition that will increase the acquiring company's earnings ...
  4. Dilutive Acquisition

    A takeover transaction that will decrease the acquirer's earnings ...
  5. Imputed Interest

    A term that describes interest that is considered to be paid ...
  6. Asset

    1. A resource with economic value that an individual, corporation ...
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