Accretion means a gradual increase in the value of an asset or liability over time.

In finance and accounting, it commonly refers to:

Increase in bond value – A bond bought at a discount gradually increases in value until it reaches its face value at maturity.

Increase in liability – Certain long-term obligations increase over time due to interest or adjustments.

Example:
If a bond with a face value of ₹1,000 is bought for ₹900, the ₹100 difference is gradually added (accreted) over the bond’s life.

In simple terms, accretion means a slow and steady increase in value over time.