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 ?
Friday's constructive order from the North Carolina Utilities Commission in the Duke Energy Progress rate case effectively allows recovery of a majority of the utility's historical costs related to coal ash basin closures, Arnold tells investors in a research note.
Although it is objective and reliable and no shortage of followers, assessment based on historical costs began to lose more and more ground in recent years because the body to normalize US FASB and the International IASB, promoted increasingly the concept of fair value.
Despite this, fair value reporting has its share of detractors, who believe that historical costs still embody the most logical measurement basis for financial statement presentation.
* Familiar and traditional accounting principles, such as historical costs and the matching of revenues and expenses, are the foundation of the proposed framework.
Statoil will finance the geophysical operations in their entirety, compensate Rosneft for historical costs and pay 33.3% of licence acquisition costs.
The law introduces the concept "historical costs", which payment terms should be stipulated in the license agreement, while the cost is calculated in accordance with the rules approved by the Kyrgyz government.
The counterparty would also pay its pro-rata share of certain historical costs incurred last year as FOGL was making preparations for drilling.
28 December 2011 - Norwegian Panoro Energy ASA (OSL:PEN) said today it had completed the sale of a 35% interest in three shallow-water exploration licences offshore Brazil and had received USD14.5m for historical costs on the blocks.
The historical costs of the picture can be obtained directly from the client or studio if it is a matter in which historical data can be relied upon.
Another major issue related to historical costs is the accurate posting of material and subcontractor costs, as well as the proper maintenance of past vendor history.
Specifically, if the FASB continues its current depreciation recommendations for long-lived assets, with historical costs serving as the basis for the calculation, it is simply reinforcing its longstanding policy.

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