historical cost investment & finance definition
An
accounting principle that requires that all assets included on a company’s
balance sheet be based on the original, or acquisition, cost. Items are
depreciated as needed.
See historical cost in Wall Street Words
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.
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