Historical cost accounting: Difference between revisions
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== See also == | == See also == | ||
* [[Current cost accounting]] | * [[Current cost accounting]] | ||
* [[Financial reporting]] | |||
* [[Short termism]] | |||
[[Category:Accounting,_tax_and_regulation]] | |||
Revision as of 13:46, 5 August 2018
The usual basis of valuation in published financial statements, based on the orginal cost of assets to the reporting entity.
Generally favoured because historical cost is an objective measure which can be relatively easily verified, for example by an auditor.
The use of historical cost accounting can however be challenged on conceptual grounds, especially in times of high inflation.
