Jan 26 2012

French > English Financial Glossary: Actualiser > Discount

Category: Financial GlossaryFinancial Translator @ 10:15 am

Plain English explanation:
Discounting involves adjusting future sums of money to their value at the present time. This is done by means of a discount rate. So, for example, if a company were to receive 100 in 5 years but was required to recognise this receivable in its current financial statements it would be required to apply a discount rate to the 100 to calculate its present value. Assuming a discount rate of 10% the present value of that 100 would be 100 / (1 + 0.1)^5 = 62.

L’actualisation consiste à ramener sur une même base des flux financiers non directement comparables qui se produisent à des dates différentes. Cela permet non seulement de les comparer mais également d’effectuer sur eux des opérations arithmétiques.
Author: Wikipedia (http://fr.wikipedia.org/wiki/Actualisation)

More technical stuff:
English translation: Discount
Source: Self
Date: 2012
Note: Saxce Accounting, Tax and Financial Dictionary notes that “discount to present value” might be appropriate in certain contexts and that “valeur actualisée” is best translated as “present value”.

Les flux des emprunts et dettes de titres à taux fixe sont actualisés en fonction de la valeur des taux fixes du marché en date d’arrêté, pour une dette de même maturité résiduelle.

Tags: accounting term

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