Define: Historical Cost

UK Accounting Glossary

Definition: Historical Cost


Quick Summary of Historical Cost


Method of valuing assets and liabilities based on their original cost without adjustment for changing prices.



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Examples of Historical Cost in a sentence


Our historical cost loss of £53 million was recorded after stock holding losses of £34 million.
Fixed assets shall be accounted for based on the historical cost obtained.
The accounts have been prepared under the historical cost convention.
When conforming with historical cost principles, Inventory must be measured at the acquisition cost.


Synonyms For Historical Cost


initial cost, original cost, actual costs, initial estimate, initial outlay


Cite Term


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Modern Language Association (MLA):
Historical Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. February 29, 2020 https://payrollheaven.com/define/historical-cost/.
Chicago Manual of Style (CMS):
Historical Cost. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/historical-cost/ (accessed: February 29, 2020).
American Psychological Association (APA):
Historical Cost. PayrollHeaven.com. Retrieved February 29, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/historical-cost/

Definition Sources


Definitions for Historical Cost are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.