ROLL FORWARD Definition

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ROLL FORWARD, in accounting, it is the systematic establishment of a new accounting periods balances by using (rolling forward) prior accounting period data. There are two approaches: 1. Roll forward both asset and liabilities on a consistent basis from a consistent earlier date (possibly the last annual review) or, take the most up to date asset and liability figures as the starting point (which may be at different dates) to produce roll forward estimates of assets and liabilities; in securities, it is when an investor replaces an old options position with a new one having a later expiration date (and same strike price).

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PERPETUITY, in finance, is an annuity payable forever.

SINKING FUND is a sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the governments or firms bonds that are to be paid off. Usually the fund is administered by a trustee.

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