ACCRETION
Financial Dictionary — Business & Management
Definition
ACCRETION is the adjustment of the difference between the price of a bond purchased at an original discount and the par value of the bond; or, asset growth through internal growth, expansion or natural causes, e.g. the growth of timber/trees.
Use cases, Example & Why it matters
Use cases
- Used in planning, organizing, and controlling business operations.
- Used when setting KPIs, policies, procedures, and improving processes.
- Used when setting KPIs, policies, procedures, and improving processes.
Example
- Example: Management applies **ACCRETION** when designing policies and monitoring performance against targets.
Why it matters
- Why it matters: Improves execution, accountability, and decision speed while reducing operational waste.