Rate of return and Rate regulator: Difference between pages

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The investor's return on an investment, expressed as a proportion of the amount invested.
An authorised body empowered by statute or regulation to establish the rate or range of rates or prices that may be charged by a regulated entity, for example an electricity supplier.  


Most commonly expressed as a percentage.


The rate regulator may be a third-party body or a related party of the entity itself, including the entity's own governing board, if that body is required by statute or regulation to set rates both in the interests of customers and to ensure the overall financial viability of the entity.


<span style="color:#4B0082">'''Example'''</span>


GBP 1 million is invested.
==See also==
* [[IFRS 14]]
* [[Rate regulation]]
* [[Regulatory deferral account]]


GBP 1.03 million is repayable at the end of the period.
[[Category:Accounting,_tax_and_regulation]]
 
[[Category:The_business_context]]
 
The rate of return per period (r) is:
 
r = (End amount / Start amount) - 1
 
 
''Which can also be expressed as:''
 
r = (End / Start) - 1
 
= (1.03 / 1.00) - 1
 
= 0.0300
 
= '''3.00%''' per period
 
 
=== Basis of quoting rates of return ===
 
The rate of return in the example above has been calculated and stated on a [[periodic]] basis.
 
Rates of return are often also quoted on an annual basis, following the convention for the market in which the proposed deal is being negotiated.
 
 
== See also ==
* [[Conventional year]]
* [[Cost of capital]]
* [[Effective annual rate]]
* [[Expected rate of return]]
* [[Nominal annual rate]]
* [[Periodic]]
* [[Periodic rate]]
* [[Real return]]
* [[Return]]
* [[Yield]]
 
[[Category:Corporate_finance]]

Latest revision as of 07:49, 2 July 2022

An authorised body empowered by statute or regulation to establish the rate or range of rates or prices that may be charged by a regulated entity, for example an electricity supplier.


The rate regulator may be a third-party body or a related party of the entity itself, including the entity's own governing board, if that body is required by statute or regulation to set rates both in the interests of customers and to ensure the overall financial viability of the entity.


See also

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