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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
Certain items excluded from Adjusted EBITDA are significant components in understanding and assessing a company's financial performance, such as a company's cost of capital and tax structure, as well as the historic costs of depreciable assets, none of which are components of Adjusted EBITDA.
"Any development will, of course, have to take into account the historic costs associated with the site in order to achieve a viable outcome.
has entered into an agreement to acquire a 12.5% 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 3.2m (GBP 800,000 net cost to Angus), and certain further contingent costs as further set out below.
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.
It has to be based on future real costs, not on historic costs".
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.

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