DAILY ACCRUAL OF RENT AND THE DEFINITION OF CAPITAL VALUE OF AN INVESTMENT

Abstract

The theory of investment valuation does not address the issue of what should be done about income for part‐years, restricting itself instead to cases where the lengths of time involved are whole numbers of years. The market, on the other hand, does appear to have a way of dealing with this problem, although it disguises the reality of what is actually happening. This article examines the logic of the device employed (rent apportionment) and discusses its role in preserving the distinction between capital and income.

Citation

BORNAND, D. (1988), "DAILY ACCRUAL OF RENT AND THE DEFINITION OF CAPITAL VALUE OF AN INVESTMENT", Journal of Valuation, Vol. 6 No. 4, pp. 336-350. https://doi.org/10.1108/eb008030