Internal Rate of Return (IRR)

Definition

The annualised rate of return at which the net present value of all cash flows from an investment equals zero. IRR is the standard performance metric for private equity and venture capital funds, allowing comparison across investments with different holding periods and cash flow profiles.

Related Terms

IAS 38 (Intangible Assets) Identified Intangible Asset IFRS 13 (Fair Value Measurement) IFRS 3 (Business Combinations) Impairment

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