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.

Definition:
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”.

Context:  
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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