historical cost

historical cost
A method of valuing units of stock or other assets based on the original cost incurred by the organization. For example, the issue of stock using first-in-first-out cost or average cost charge the original cost against profits. Similarly, the charging of depreciation to the profit and loss account, based on the original cost of an asset, is writing off the historical cost of the asset against profits.

Accounting dictionary. 2014.

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  • Historical cost — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • historical cost — Describes the accounting cost carried in the books for a current cost of the item. Bloomberg Financial Dictionary * * * historical cost historical cost ➔ cost1 * * *    The original cost of a company s assets, as distinct from replacement cost. * …   Financial and business terms

  • Historical Cost — A measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company. The historical cost method is used for assets …   Investment dictionary

  • historical cost — noun 1. : a cost computed after production from records made concurrently with various steps of production contrasted with predetermined cost and standard cost 2. : the value at which a capital asset is recorded on the books representing the… …   Useful english dictionary

  • historical cost — įsigijimo savikaina statusas T sritis Gynyba apibrėžtis Išlaidos, kurios turto įsigijimo atveju registruojamos tikrąja įsigijimo verte, o įsipareigojimo atveju – laukiama būsimojo atsiskaitymo verte. atitikmenys: angl. historical cost ryšiai:… …   Lithuanian dictionary (lietuvių žodynas)

  • Historical cost depreciation — снижение первоначальной стоимости активов в результате износа. Синонимы английские: Historic cost depreciation См. также: Амортизация Финансовый словарь Финам …   Финансовый словарь

  • historical cost accounting — UK US noun [U] ACCOUNTING ► HISTORIC COST ACCOUNTING(Cf. ↑historic cost accounting) …   Financial and business terms

  • historical-cost accounting — A system of accounting based on the principle that assets should be valued at historical cost It is relaxed to some extent by such practices as the valuation of stock at the lower of cost and net realizable value and, in the UK, revaluation of… …   Big dictionary of business and management

  • historical-cost accounting — A system of accounting based primarily on the original costs incurred in a transaction. It is relaxed to some extent by such practices as the valuation of stock at the lower of cost and net realizable value and, in the UK, revaluation of fixed… …   Accounting dictionary

  • historical-cost convention — A convention under which assets are carried in the books of account at their historical cost. See also: modified historical cost convention …   Accounting dictionary

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