What Is Repayment? Repayment is the act of paying back money previously borrowed from a lender. Typically, the return of funds happens through periodic payments, which include both principal and interest. The principal refers to the original sum of money borrowed in a loan. Interest is the charge for the privilege of borrowing money; a borrower
What Is the Repeat-Sales Method? The repeat-sales method is a manner of calculating changes in the sales price of the same piece of real estate within specific timeframes. Housing market analysts use this relatively simple approach to estimate shifts in home prices over periods stretching from months to years. Various housing price indexes have adopted the repeat-sales
What Is a Reperforming Loan (RPL)? A reperforming loan (RPL) is a mortgage that had become delinquent because the borrower fell behind on payments by at least 90 days, but returned to “performing” status again because the borrower has resumed making payments. Key Takeaways A reperforming loan (RPL) is one that was once delinquent but
What Is the Replacement Chain Method? The replacement chain method is a capital budgeting decision model that compares two or more mutually exclusive capital proposals with unequal lives. The replacement chain method takes into consideration the different life spans of alternative plans, as well as their expected cash flows. That makes it easier to compare
What Is a Replacement Cost? Replacement cost is a term referring to the amount of money a business must currently spend to replace an essential asset like a real estate property, an investment security, a lien, or another item, with one of the same or higher value. Sometimes referred to as a “replacement value,” a
What Is a Replacement Property? Replacement property is any property that is received in place of property that has been destroyed, lost, or stolen. Replacement property can be personal or business property and can include various types of assets, such as real estate, equipment, and vehicles. Replacement property is often insured by a casualty-insurance carrier.
What Was Repo 105? Repo 105 was a type of loophole in accounting for repurchase (repo) transactions that the now-extinguished Lehman Brothers exploited in an attempt to hide true amounts of leverage during its times of trouble during the 2007-2008 financial crisis. In this repurchase agreement, since updated to close the loophole, a company could
What Is Reported But Not Settled (RBNS)? Reported but not settled (RBNS) refers to losses reported to an insurance company that have not been settled by the end of the accounting period. Reported but not settled (RBNS) losses are calculated using an estimation of the severity of the loss based on the available information from
What Is a Reporting Currency? Reporting currency is the currency in which an entity’s financial statements or other financial documents are reported. Choosing one currency for reporting makes it easier to understand the financial documents across the board. Most often the currency used is the currency of the country in which the parent company is
What Is Repricing? Repricing involves the exchange of worthless employee stock options for new options that have intrinsic value. This is a common practice for companies to keep or incentivize executives and other highly valued employees when the value of the company’s shares falls below the exercise price or break-even point for the options issued
