Historical cost

In accounting, an economic item's historical cost is the original nominal monetary value of that item. Historical cost accounting involves reporting assets and liabilities at their historical costs, which are not updated for changes in the items' values. Consequently, the amounts reported for these balance sheet items often differ from their current economic or market values. The capital maintenance in units of constant purchasing power model is an International Accounting Standards Board approved alternative basic accounting model to the traditional historical cost accounting model.

Historical cost

In accounting, an economic item's historical cost is the original nominal monetary value of that item. Historical cost accounting involves reporting assets and liabilities at their historical costs, which are not updated for changes in the items' values. Consequently, the amounts reported for these balance sheet items often differ from their current economic or market values. The capital maintenance in units of constant purchasing power model is an International Accounting Standards Board approved alternative basic accounting model to the traditional historical cost accounting model.