Definitions for historical cost
his·tor·i·cal cost

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1. Historical cost

   In accounting, an economic item's historical cost is the original nominal monetary value of that item. Historical cost accounting involves reporting assets and liabilities at their historical costs, which are not updated for changes in the items' values. Consequently, the amounts reported for these balance sheet items often differ from their current economic or market values. While use of historical cost measurement is criticised for its lack of timely reporting of value changes, it remains in use in most accounting systems during periods of low and high inflation and deflation. During hyperinflation, International Financial Reporting Standards (IFRS) require financial capital maintenance in units of constant purchasing power in terms of the monthly CPI as set out in IAS 29, Financial Reporting in Hyperinflationary Economies. Various adjustments to historical cost are used, many of which require the use of management judgment and may be difficult to verify. The trend in most accounting standards is towards more timely reflection of the fair or market value of some assets and liabilities, although the historical cost principle remains in use. Many accounting standards require disclosure of current values for certain assets and liabilities in the footnotes to the financial statements instead of reporting them on the balance sheet. For some types of assets with readily available market values, standards require that the carrying value of an asset (or liability) be updated to the market price or some other estimate of value that approximates current value (fair value, also fair market value). Accounting standards vary as to how the resultant change in value of an asset or liability is recorded; it may be included in income or as a direct change to shareholders' equity. The capital maintenance in units of constant purchasing power model is an International Accounting Standards Board approved alternative basic accounting model to the traditional historical cost accounting model.

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1. Historical cost

   In accounting under the traditional historical cost paradigm, historical cost is the original nominal monetary value of an economic item. Historical cost is based on the stable measuring unit assumption. In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition. The balance sheet value of the item may therefore differ from the real value. While historical cost is criticised for its inaccuracy, it remains in use in most accounting systems during low and high inflation and deflation. During hyperinflation, International Financial Reporting Standards require financial capital maintenance in units of constant purchasing power in terms of the monthly CPI as set out in IAS 29 Financial Reporting in Hyperinflationary Economies. Various corrections to historical cost are used, many of which require the use of management judgment and may be difficult to verify. The trend in most accounting standards is a move to more accurate reflection of the fair or market value, although the historical cost principle remains in use, particularly for assets of little importance.

How to pronounce historical cost?

1. Alex

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   David

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   Mark

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   Daniel

   British

   Libby

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   Mia

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   Karen

   Australian

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   South African

How to say historical cost in sign language?

Numerology

1. Chaldean Numerology

   The numerical value of historical cost in Chaldean Numerology is: 2

2. Pythagorean Numerology

   The numerical value of historical cost in Pythagorean Numerology is: 9

References

1. ^ Wikipedia
   https://en.wikipedia.org/wiki/Historical_Cost
2. ^ Wikidata
   https://www.wikidata.org/w/index.php?search=historical cost