This is part of the ARO module for EZLease.
A steady increase in value. Used for Asset Retirement Obligations (AROs) to accrue the liability, for which the accretion is done on a compounded basis, so the amount of increase itself increases each year. The result is that the ARO is always the present value of the expected future cost of satisfying the ARO, and accretion expense is recognized for each reporting period representing the change in liability.
The ARO accretion can be compounded on a daily basis, or monthly. If compounded monthly, each day of a month has the same accretion expense. If compounded daily, the accretion expense slightly increases each day.