imported>Doug Williamson |
imported>Doug Williamson |
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| 1. ''Financial reporting and measures''.
| | A cost of borrowing - or rate of return - expressed as: |
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| Profitability.
| | *The excess of the amount at the end over the amount at the start |
| | *Divided by the amount at the end |
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| Often measured by performance ratios, among other measures.
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| | ==Example 1== |
| | GBP 1 million is borrowed. |
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| 2. ''Contract law.''
| | GBP 1.03 million is repayable at the end of the period. |
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| In contract law, performance of a contract means that the parties meet their contractual obligations as agreed.
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| | The periodic discount rate (d) is: |
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| 3.
| | (End amount - start amount) / End amount |
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| Performance also refers to measures of an employee's or contractor's fulfilment of their duties.
| | = (1.03 - 1) / 1.03 |
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| In this context, measures of performance may be qualitative or quantitative.
| | = 0.029126 |
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| | = 2.9126% |
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| In relation to a company or business, performance can refer to the company's fulfilment of investors' expectations.
| | ==Example 2== |
| | GBP 0.97 million is borrowed or invested |
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| For example, as measured by performance ratios or gains in shareholder value.
| | GBP 1.00 million is repayable at the end of the period. |
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| 5.
| | The periodic discount rate (d) is: |
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| Any measure of activity, particularly when compared with a pre-defined standard.
| | (End amount - start amount) / End amount |
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| For example, payments practices under related reporting regulations.
| | = (1.00 - 0.97) / 1.00 |
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| | = 0.030000 |
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| == See also == | | = 3.0000% |
| * [[Balanced scorecard]]
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| * [[Contract]]
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| * [[Discharge of contract]]
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| * [[Environmental profit and loss]]
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| * [[Financial reporting]]
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| * [[Frustration]]
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| * [[Key performance indicator]] (KPI)
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| * [[Performance bond]]
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| * [[Performance guarantee]]
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| * [[Performance ratio]]
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| * [[Performance risk]]
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| * [[Performance spread]]
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| * [[Profitability]]
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| * [[Profitability ratio]]
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| * [[Reporting on Payment Practices and Performance Regulations]]
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| * [[Shareholder value]]
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| * [[Specific performance]]
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| * [[Skills and performance coaching]]
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| * [[Sustainability performance target]]
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| * [[Treasury_performance_management_–_waste_of_time_or_a_necessity%3F|Treasury performance management – waste of time or a necessity?]]
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| [[Category:Commercial_drive_and_organisation]]
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| [[Category:Influencing]]
| | ==See also== |
| [[Category:Self_management_and_accountability]]
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| [[Category:Working_effectively_with_others]]
| | *[[Effective annual rate]] |
| [[Category:Financial_management]]
| | *[[Discount rate]] |
| [[Category:Knowledge_and_information_management]]
| | *[[Periodic yield]] |
| [[Category:Planning_and_projects]] | | *[[Yield]] |
| [[Category:Accounting,_tax_and_regulation]] | |
| [[Category:The_business_context]] | |
| [[Category:Compliance_and_audit]] | |
A cost of borrowing - or rate of return - expressed as:
- The excess of the amount at the end over the amount at the start
- Divided by the amount at the end
Example 1
GBP 1 million is borrowed.
GBP 1.03 million is repayable at the end of the period.
The periodic discount rate (d) is:
(End amount - start amount) / End amount
= (1.03 - 1) / 1.03
= 0.029126
= 2.9126%
Example 2
GBP 0.97 million is borrowed or invested
GBP 1.00 million is repayable at the end of the period.
The periodic discount rate (d) is:
(End amount - start amount) / End amount
= (1.00 - 0.97) / 1.00
= 0.030000
= 3.0000%
See also
