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Historical Cost Accounting Convention |
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Historical Cost Accounting Convention An accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition. |
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| Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. Because the historical cost accounting convention used for real estate assets requires straight-line depreciation (except on land), such accounting presentation implies that the value of real estate assets diminishes predictably over time. |
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Historical Cost Accounting Convention
