interim

Examples of interim in the following topics:

• Disadvantages of the IRR Method

  • In addition, IRR assumes reinvestment of interim cash flows in projects with equal rates of return (the reinvestment can be the same project or a different project).
  • Therefore, IRR overstates the annual equivalent rate of return for a project whose interim cash flows are reinvested at a rate lower than the calculated IRR.
  • This presents a problem, especially for high IRR projects, since there is frequently not another project available in the interim that can earn the same rate of return as the first project.
  • When the calculated IRR is higher than the true reinvestment rate for interim cash flows, the measure will overestimate–sometimes very significantly–the annual equivalent return from the project.
  • The formula assumes that the company has additional projects, with equally attractive prospects, in which to invest the interim cash flows.

• Methods of Paying Dividends

  • Interim dividends are dividend payments made before a company's annual general meeting and final financial statements.
  • This declared dividend usually accompanies the company's interim financial statements.

• Reinvestment Assumptions

  • IRR assumes reinvestment of interim cash flows in projects with equal rates of return (the reinvestment can be the same project or a different project).
  • Therefore, IRR overstates the annual equivalent rate of return for a project that has interim cash flows which are reinvested at a rate lower than the calculated IRR.
  • This presents a problem, especially for high IRR projects, since there is frequently not another project available in the interim that can earn the same rate of return as the first project.
  • When the calculated IRR is higher than the true reinvestment rate for interim cash flows, the measure will overestimate–sometimes very significantly–the annual equivalent return from the project.

• Modified IRR

  • Firstly, IRR assumes that interim positive cash flows are reinvested at the same rate of return as that of the project that generated them.
  • Generally, for comparing projects more fairly, the weighted average cost of capital should be used for reinvesting the interim cash flows.

• Differences Between GAAP and IFRS and Implications of Potential Convergence

  • Earning-per-Share — Under IFRS, the earning-per-share calculation does not average the individual interim period calculations, whereas under GAAP the computation averages the individual interim period incremental shares.

• Reinvestment Risk

  • Zero coupon bonds are the only fixed-income instruments to have no reinvestment risk, since they have no interim coupon payments.

• Amortized Cost Method

  • In order to record the interim interest revenue and report the investment on the balance sheet, it is necessary to prepare an amortization schedule for the debt.

• Shuttle Diplomacy

  • He accomplished the Sinai Interim Agreement (1975) and arrangements between Israel and Syria on the Golan Heights (1974).

• How Corporations Raise Capital

  • In the interim, bondholders receive interest payments at fixed rates on specified dates.

• Methods in Retail Inventory

  • Thus, the use of this estimate permits the preparation of interim financial statements (monthly or quarterly) without taking a physical inventory.