Historical Cost

From Open Risk Manual

Definition

Historical Cost is a Measurement Basis (methodology) that provides monetary information about assets, liabilities and related income and expenses, using information derived, at least in part, from the price of the transaction or other event that gave rise to them.

Unlike current (fair) value, historical cost does not reflect changes in values, except to the extent that those changes relate to impairment of an asset or a liability becoming onerous.

See Also