What is meant by aging in financial term?

Question

(in the following context)

------------------------
FINANCIAL OVERVIEW


Table:
1. Capital adequacy, cost of fund, debt to total asset & debt to total equity.

2. Portfolio at risk, *aging* distribution

Answer 1

Ageing (or aging) in respects of any assets such as investment or amounts due (accounts receivable), refers to the categorization of these assets in chronological order, irrespective of the actual amount. This classification and further analysis helps (in the case of amounts due) to decide whether such assets are likely to be realized or not when accounts are drawn up, and whether any provision for diminution in the value of assets needs to be made.
For example, a company's policy (or even, in certain cases, the government policy) may be to progressively make a provision in the accounts for amounts not realized (or realizable) if outstanding for a period of say 3 years. The 'ageing' analysis helps to decide on the amount to be provided for.

Answer 2

A method used by accountants and investors to evaluate and identify any irregularities within a company's account receivables. Aging is achieved by sorting and inspecting the accounts according to their length outstanding.

http://financial-dictionary.thefreedictionary.com/Aging

Check this link. It'll help

http://www.specialinvestor.com/terms/758.html