historical cost

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Historical cost

Describes the accounting cost carried in the books and reflecting the cost of the item at the time it was purchased, rather than its current value.

Historical Cost

In the Generally Accepted Accounting Principles, the original cost of an asset on a balance sheet. Many assets, particularly illiquid assets, are recorded on a balance sheet according to their historical cost. A notable exception to this rule is the recording of marketable securities, which are recorded according to their market value. The historical cost usually bears little or no relationship to the market value after an asset has been held for several years.

historical cost

The amount of money that was originally used to pay for an asset. A company records assets on a balance sheet at historical cost, which often bears little relation to the market value of the assets after they have been owned several years. Also called original cost.
References in periodicals archive ?
The parties have now agreed that the Company will be responsible for unpaid historic costs of US$95,000, all transportation costs and 40% of the smelter costs capped at US$16,000 per month in addition to other operating costs (including gold export royalties and taxes).
5% economic interest in PEDL143 through the immediate payment of certain historic costs incurred by the operator along with 25% of the costs of the Holmwood-1 exploration well up to a gross well cost of GBP 3.
To address the nearly 40% of unmatched data, the team assigned proxy costs to the data based on per diem costs, the rank of the traveler, as well as historic costs unique to the using organization.
Contractors awaiting money for previous projects may be tempted to bid low in order to obtain advance payments to cover historic costs, and then, when this situation reoccurs, they may be tempted to do the same thing again, ad infinitum.
Either way, it would not be fair for the new town council to be excessively burdened with historic costs which on any objective basis belong elsewhere.
Conservative councillor Ewan Mackey said: "There is a significant capital required to make good the current dilapidations and we hope that Birmingham City Council, which has had responsibility for the town hall for "Either way, it would not be fair for the new town council to be excessively burdened with historic costs which, on any objective basis, belong elsewhere.
The reality is that the "growing sophistication" of cybercriminals ties directly to the historic costs we're seeing for data breaches.
At the inaugural annual meeting of the new business, Wrexham AFC Ltd, for the year ending June 30, 2012, Dragons' financial director Mark Williams last night told members of Wrexham Supporters Trust that with the remainder of the historic costs due to be cleared this year the club was on course for a brighter and more stable financial future.
The price Rosneft will pay for the asset is equal to the historic costs incurred by Sberbank.
In 2006, Congress increased liability limits, but for certain vessel types, the limits may still be low compared with the historic costs of cleaning up spills from those vessels.
According to historic costs, the residual value can be defined as being the estimated value of the product in dollars, at the present value of the dollars (without taking in consideration the inflation), at the end of the life-cycle of the product.
Under fair value accounting, however, historic costs shouldn't impact the value of the recorded asset.

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