historical cost accounting

/hɪ'stɒrɪk(ə)l kɒst/ noun
the preparation of accounts on the basis of historical cost, with assets valued at their original cost of purchase.

Dictionary of banking and finance. 2015.

Look at other dictionaries:

  • historical-cost accounting — A system of accounting based primarily on the original costs incurred in a transaction. It is relaxed to some extent by such practices as the valuation of stock at the lower of cost and net realizable value and, in the UK, revaluation of fixed… …   Accounting dictionary

  • historical cost accounting — UK US noun [U] ACCOUNTING ► HISTORIC COST ACCOUNTING(Cf. ↑historic cost accounting) …   Financial and business terms

  • historical-cost accounting — A system of accounting based on the principle that assets should be valued at historical cost It is relaxed to some extent by such practices as the valuation of stock at the lower of cost and net realizable value and, in the UK, revaluation of… …   Big dictionary of business and management

  • historical cost accounting — Fin a system of accounting in which all values are based on the historical costs incurred …   The ultimate business dictionary

  • 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. Bloomberg Financial Dictionary …   Financial and business terms

  • historical cost — A method of valuing units of stock or other assets based on the original cost incurred by the organization. For example, the issue of stock using first in first out cost or average cost charge the original cost against profits. Similarly, the… …   Accounting dictionary

  • historical-cost convention — A convention under which assets are carried in the books of account at their historical cost. See also: modified historical cost convention …   Accounting dictionary

  • Historical cost — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • Cost accounting — Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flow management · Chart of accounts  …   Wikipedia

  • historical cost — Describes the accounting cost carried in the books for a current cost of the item. Bloomberg Financial Dictionary * * * historical cost historical cost ➔ cost1 * * *    The original cost of a company s assets, as distinct from replacement cost. * …   Financial and business terms

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