historic cost

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.

historic cost

the original cost of purchasing an ASSET (such as an item of machinery). For accountancy purposes, the asset is entered in a firm's BALANCE SHEET at historic cost. However, allowance has to be made for the REPLACEMENT COST of the asset which, because of INFLATION, may well be considerably greater than the original price paid. Thus, DEPRECIATION provisions which are generally based on the historic cost of assets may be inadequate in a period of rapidly rising prices. See INFLATION ACCOUNTING, MARKET VALUE.

historic cost

the original cost of purchasing an ASSET (such as an item of machinery). For accountancy purposes, the asset is entered in a firm's BALANCE SHEET at historic cost. However, allowance has to be made for the REPLACEMENT COST of the asset, which, because of INFLATION, may well be considerably greater than the original price paid. Thus, DEPRECIATION provisions may be inadequate in a period of rapidly rising prices. See INFLATION ACCOUNTING.

historic cost

The cost of a structure when it was first built.Contrast with original cost,which is the price paid by the current owner.

References in periodicals archive ?
Of course, what is totally unacceptable is what we have seen happening in practice, namely the reporting of some assets at their historic cost and other assets at their market value.
Likewise, an underwater endowment fund should be defined as the current value of the assets held in the endowment fund, minus the adjusted historic cost.
For Muller, Riedl and Sellhorn (2008), companies with greater information asymmetry are more likely to use fair value for measuring investment properties, since it is investors' demands that leads them to choose fair value, and this may be preferred to historic cost because it provides users with better quality information (Barlev & Haddad, 2003; Ball, 2006; Whittington, 2008).
The report outlines Kazakhstan's governing bodies, laws, mining licenses, rights, obligations and tax-related information which includes signing bonus, commercial discovery bonus, payment to compensate for historic cost, tax on production of useful minerals, excess profits tax, corporate income tax, capital gains tax, land tax, social (payroll) tax, vehicle tax, deductions, depreciation, loss carry forward, withholding taxes, value added tax(Vat).
At the same time, AEB's ratings are supported by a track record of good asset quality, with historic cost of risk not exceeding 2%.
6 billion non-cash write-down of the value of its ageing international fleet, largely due to the historic cost of aircraft purchased at a much lower Australian dollar exchange rate.
A total of 69 firms were contacted and the results indicated that 43% had a real or historic cost system, 37% had estimated or standard ones and only 6% were activity-based costs; 14% did not reply.
historic cost, and relevance versus reliability, is nothing new; it was at the center of early accounting discussions in the AAA (especially by A.
Simple spend data indicates that, far from being ignored, cinema has had a very strong 2012, no doubt helped by some high profile films driving audience numbers and the roll out of digital screens reducing productions costs - a historic cost barrier to many advertisers," says Dan Thomp- son, global account director at MediaCom MENA.
people will still want to escape to the movies, but they'll want it for the historic cost of a loaf of bread.
From 1997 to 2000, ARCEP regulated France Telecom tariffs on the basis of historic cost accounts.
The government will pay their share of the historic cost and take a 20 per cent stake in the project at the time of commerciality.

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