amortization of discount

简明释义

摊提贴水

英英释义

例句

1.Investors need to understand how the amortization of discount affects their return on investment.

投资者需要了解折扣摊销如何影响他们的投资回报。

2.The accountant calculated the amortization of discount for the first quarter based on the bond's issue price.

会计根据债券的发行价格计算了第一季度的折扣摊销。

3.The company recorded the amortization of discount on its bonds payable as an expense in its financial statements.

公司在财务报表中将其应付债券的折扣摊销记录为费用。

4.For tax purposes, companies must report the amortization of discount as part of their taxable income.

出于税务目的，公司必须将折扣摊销作为应纳税收入的一部分报告。

5.Each year, the amortization of discount reduces the carrying amount of the bond on the balance sheet.

每年，折扣摊销都会减少资产负债表上债券的账面价值。

作文

In the world of finance, understanding various terms and concepts is crucial for making informed decisions. One such term that often comes up in discussions about loans and investments is the amortization of discount. This phrase refers to the process of gradually writing off the initial discount on a financial instrument over its life. To comprehend this concept better, it is essential to break it down into simpler components.Firstly, let’s define what a discount means in financial terms. A discount occurs when a financial instrument, such as a bond or a loan, is issued at a price lower than its face value. For example, if a bond has a face value of $1,000 but is sold for $950, it is said to be issued at a discount. The difference of $50 is the discount that the investor receives as compensation for purchasing the bond below its face value.Now, the amortization of discount involves spreading this discount amount over the life of the bond. This is important because it affects the interest income that investors will recognize over time. Instead of recognizing the entire discount as income in the year the bond is purchased, investors amortize the discount, which means they will recognize a portion of it as income each year until the bond matures.For instance, consider an investor who buys a bond at a $50 discount. If the bond matures in five years, the investor might choose to amortize the discount evenly over those five years. This would mean that each year, $10 of the discount is recognized as income. This systematic approach not only provides a clearer picture of the investor's earnings over the life of the bond but also aligns with accounting principles that aim to match income with the period in which it is earned.The amortization of discount is also significant for tax purposes. Different countries have varying regulations regarding how discounts are treated for tax calculations. In many jurisdictions, the amortized portion of the discount can be deducted from taxable income, reducing the overall tax liability for the investor. Therefore, understanding this concept can lead to more effective tax planning strategies.Moreover, the amortization of discount plays a vital role in the valuation of bonds and other fixed-income securities. Investors and analysts often look at the amortized cost of a bond to determine its fair market value. By knowing how much of the discount has been amortized and how much remains, investors can make more accurate assessments of whether a bond is a good investment based on its current market price.In conclusion, the amortization of discount is a fundamental concept in finance that affects how investors recognize income, manage taxes, and evaluate investments. By understanding this term, investors can make more informed decisions and potentially improve their financial outcomes. As with any financial concept, gaining a deeper understanding of the amortization of discount can lead to better investment strategies and enhanced financial literacy. It emphasizes the importance of thorough research and comprehension in the realm of finance, where knowledge is indeed power.

在金融世界中，理解各种术语和概念对于做出明智的决策至关重要。一个在讨论贷款和投资时经常出现的术语是折扣摊销。这个短语指的是逐渐冲销金融工具初始折扣的过程。在更好地理解这个概念之前，有必要将其分解为更简单的组成部分。首先，让我们定义一下金融术语中的折扣。折扣发生在金融工具（如债券或贷款）以低于面值的价格发行时。例如，如果一只债券的面值为1000美元，但以950美元出售，则称其以折扣发行。50美元的差额就是投资者作为补偿而获得的折扣，因为他们以低于面值的价格购买了债券。现在，折扣摊销涉及在债券的生命周期内将这一折扣金额分摊。这一点很重要，因为它影响投资者在一段时间内确认的利息收入。投资者不会在购买债券的年份内一次性确认全部折扣，而是摊销折扣，这意味着他们每年会将其中的一部分作为收入确认，直到债券到期。例如，考虑一个以50美元折扣购买债券的投资者。如果债券在五年后到期，投资者可能选择在这五年内均匀摊销折扣。这意味着每年确认10美元的折扣作为收入。这种系统的方法不仅提供了投资者在债券生命周期内收益的更清晰图景，而且符合旨在将收入与其赚取期间匹配的会计原则。折扣摊销在税务方面也非常重要。不同国家对折扣在税务计算中的处理有不同的规定。在许多司法管辖区，摊销的折扣部分可以从应税收入中扣除，从而减少投资者的整体税负。因此，理解这一概念可以导致更有效的税务规划策略。此外，折扣摊销在债券和其他固定收益证券的估值中也发挥着至关重要的作用。投资者和分析师通常会查看债券的摊销成本，以确定其公允市场价值。通过了解折扣已经摊销多少以及剩余多少，投资者可以更准确地评估债券是否值得投资，基于其当前市场价格。总之，折扣摊销是金融中的一个基本概念，影响投资者如何确认收入、管理税务和评估投资。通过理解这个术语，投资者可以做出更明智的决策，潜在地改善他们的财务结果。正如任何金融概念一样，更深入地理解折扣摊销可以导致更好的投资策略和提高的财务素养。它强调了在金融领域彻底研究和理解的重要性，在那里，知识确实就是力量。