Historical Cost
/ˈhɪstərɪkəl kɒst/
Definitions
- (n.) The original monetary value of an asset recorded at the time of acquisition, used as the basis for accounting and legal valuation.
The property was reported on the balance sheet at its historical cost.
Forms
- historical cost
- historical costs
Related terms
See also
Commentary
Historical cost remains the primary method for asset valuation in legal accounting, as it provides an objective basis for financial reporting and legal disputes involving asset values.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.