Historical cost accounting: Difference between revisions
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The use of historical cost accounting can however be challenged on conceptual grounds, especially in times of high inflation. | The use of historical cost accounting can however be challenged on conceptual grounds, especially in times of high inflation. | ||
== See also == | == See also == | ||
* [[Current cost accounting]] | * [[Current cost accounting]] | ||
Revision as of 19:35, 5 May 2016
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.
