Effective interest method and Return on investment: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Spacing 20/8/13)
 
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''Financial reporting''.
(ROI).  


In relation to a financial asset or financial liability, the allocation of the difference between the initial cost and the final maturity amount using the effective interest rate.
A measure of how much return is received (or expected to be received) compared to the investment made.


Also known as the amortised cost method.
Definitions of return and investment may vary depending on the specific use to which the measure is put.




== See also ==
== See also ==
* [[Actuarial method]]
* [[Accounting return on investment]]
* [[Amortisation]]
* [[Return on capital employed]]
* [[Effective interest rate]]
 
[[Category:Compliance_and_audit]]

Revision as of 14:23, 20 August 2013

(ROI).

A measure of how much return is received (or expected to be received) compared to the investment made.

Definitions of return and investment may vary depending on the specific use to which the measure is put.


See also