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historic cost

   Also found in: Financial, Wikipedia 0.01 sec.

historic cost

Practice of using the original cost of an asset as a method of valuation. Entries in historical cost accounting reflect the original cost of the asset to the organization, less, in the case of fixed assets, depreciation.



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? Mentioned in ? References in periodicals archive
 
Office of Consumer Counsel questions the use of projected future costs to set rates rather than historic costs.
In The Use of Federal Innovative Finance Techniques in Public-Private Partnerships: The Case of the Capital Beltway, Marty Luby notes that innovative finance tools such as tax-exempt private activity bonds and loans from the federal Department of Transportation may reduce the public sector's historic cost of capital advantage.
Under IAS / IFRS financial liability derivatives must be accounted for at 'fair value' rather than at historic cost.
 
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