Period of account and Periodic: Difference between pages

Revision as of 16:03, 19 November 2015

An amount, usually expressed in percentage or decimal terms, applied as a proportionate amount per period, rather than per annum.

In relation to periodic yields (r):

r = R x days / year

Where:

r = periodic yield

R = nominal annual yield

days = actual number of days in the period under review

year = number of days in a conventional year

Example

Interest is quoted at a market rate of 4% in USD, for 90 days maturity.

R = nominal annual yield = 0.04 (= 4%)

days = actual number of days in the period under review = 90

year = number of days in a conventional year = 360 for USD

Periodic yield = 0.04 x 90 / 360

= 0.01 (= 1%)

This is the periodic yield per 90 days in USD.

@@ Line 1: / Line 1: @@
-''Financial reporting''.
+An amount, usually expressed in percentage or decimal terms, applied as a proportionate amount per period, rather than per annum.
-A period for which a company prepares a set of statutory accounts.
+In relation to periodic yields (r):
-Also known as ''accounting period.''
+r = R x days / year
+''Where:''
+r = periodic yield
+R = nominal annual yield
+days = actual number of days in the period under review
+year = number of days in a conventional year
+<span style="color:#4B0082">'''Example'''</span>
+Interest is quoted at a market rate of 4% in USD, for 90 days maturity.
+R = nominal annual yield = 0.04 (= 4%)
+days = actual number of days in the period under review = 90
+year = number of days in a conventional year = 360 for USD
+Periodic yield = 0.04 x 90 / 360
+= 0.01 (= 1%)
+''This is the periodic yield per 90 days in USD.''
 == See also ==
-* [[Account]]
+* [[ACT/360]]
-* [[Accounting reference date]]
+* [[ACT/365]]
-* [[Chargeable accounting period]]
+* [[Conventional year]]
-* [[Financial reporting]]
+* [[Discount rate]]
+* [[Rate of return]]
-[[Category:Accounting,_tax_and_regulation]]