Below please find a definition of “Historical cost”
Defined Term – Historical cost: The accounting principle that makes it mandatory that all financial statement items have to be based on original cost is termed as the historical cost. In other words, the statement does not reflect the current value of the items, instead it reflects the cost of the items during the time of purchase.
Fast Financial Training: If you want to take your finance or business career to the next level you should explore our financial analysis certification program, or our training programs on financial modeling, investment banking, hedge funds, or private equity. All of these programs are offered on http://BusinessTraining.com
Return to Glossary: Read More Financial Analysis Glossary Terms
Tags: Historical cost example, Define historical cost, Historical cost definition, Historical cost principle, Historical cost concept
Comments on this entry are closed.