Definition for : Interest charge
An interest charge is a charge incurred by the company to service its Debt over a period. It is calculated pro rata to the amount of Debts outstanding at the Interest rate on every category of borrowing. Sn the Present value of the pension payments due at the Balance sheet Closing date since last year due to the passage of time.
(See Chapter 9 Margin analysis: Structure of the Vernimmen)
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