Half-year convention
Half-year convention is an assumption that assets are used for half of the first year and half of the last year.
Definitions
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Half-year convention. Assumes assets are used for half of the first year and half of the last year.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
