Historical Cost Concept in Accounting
Historical cost concept is a basic accounting principle that has traditionally guided how assets are recorded in the books. Historical cost is what your company paid for an asset when you originally bought it. Types Of Costs And Their Classification Cost Accounting Money Management Accounting And Finance That cost is verifiable by a receipt or other official record of the initial transaction. . In This Article What. Historical cost is still a central concept for recording assets though fair value is replacing it for some types of assets such as marketable investments. Historical Cost Accounting is the concept which asset on balance sheet should record depend on price at the time of purchase. The original price paid. Money measurement concept Conservatism concept Dual-aspect concept Historical cost concept 2The historical. A historical cost concept is a strategy used in accounting that values assets at their original cost.
