The amount of cash or value of other resources used to acquire an asset; for some assets, historical cost is subject to depreciation, amortization, or depletion.
ACCOUNTING is an accounting principle requiring all financial statement items to be based on original cost. It is usually based upon the dollar amount originally exchanged in an arm's-length transaction; an amount assumed to reflect the fair market value of an item at the transaction date.
Refers to an accounting principle requiring all financial statement items be based on the original acquisition cost. The dollar is assumed to be stable for the period involved.
Actual cost of a property at the time it was constructed.
The original cost of a constructed property.
The dollar amount paid for an asset when it was acquired. Many assets on the balance sheet are carried at historical cost.
The original cost of acquisition of an asset, including any costs associated with acquisition. Under Australian Accounting Standard 10 'Acquisition of Non Current Assets' assets need to be reported initially at acquisition (historical cost). The Commonwealth's financial reporting requirements issued under the Finance Minister's Orders require the subsequent revaluation of non current assets to their deprival value within every three years.
The original cost of an item when first purchased; generally "historical" and "original" costs are terms used interchangeably in appraising personal property, however, a distinction may be drawn between historical cost as being the first cost of an item at the time it was first sold, and original cost as being the first cost to the present owner.
The total cost of a property when it was originally purchased.
Original cost of an asset as distinct from the replacement cost. This would be the total cost of an asset when acquired, including ancillary asset cost.
The use in cost-based valuation of the original cost of an asset, without any adjustment to take inflation into account. Contrasts with alternative approaches which attempt to adjust for inflation through such means as marking up the historical cost according to a index of general inflation (Constant Purchasing Power Accounting).
The actual cost of land, buildings, pipelines and other plant items to the company, when used in ratemaking it assumes the company's acquisition costs are prudent. The difference with original cost is the acquisition adjustment. See ORIGINAL COST.
Assets, stock, raw materials etc. can be valued at what they originally cost (which is what the term 'historical cost' means), or what they would cost to replace at today's prices (see Price change accounting ).
The amount that is paid for an asset and that is used as a basis for recognizing it on the balance sheet and carrying it on later balance sheets.
A term describing the original cost of a project, stated in dollars of the time in which the project was completed, with no adjustment for inflation.
In accounting and investing, the original purchase price of an asset.
The original cost incurred to acquire an asset. (As opposed to replacement cost, current cost, or cost adjusted by a general price index.) If a company purchased land in 1940 for $1,000 and continues to hold that land, the company's balance sheet in the year 2004 will report the land at $1,000 (even if the land is now worth $1 million). To Top
Describes the accounting cost carried in the books for a current cost of the item.
The amount originally paid to acquire an asset.
Original cost of an asset to an entity.
Historical Cost Accounting Convention Horizontal analysis
In accounting terminology, historical cost describes the original cost of an asset at the time of purchase or payment as opposed to its market value (saleable value, replacement value or value in present or alternative use). Economists use opportunity costs to distinguish an opportunity forgone from the accounting cost or historical cost recorded in accounting records.