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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.
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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.
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Under IAS / IFRS financial liability derivatives must be accounted for at 'fair value' rather than at historic cost.
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