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.

What is the dictionary definition of Historical Cost?

Dictionary Definition


Full Definition of Historical Cost


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.

Historical Cost FAQ's

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Historical Cost. Payroll & Accounting Heaven Ltd. November 21, 2019
Chicago Manual of Style (CMS):
Historical Cost. Payroll & Accounting Heaven Ltd. (accessed: November 21, 2019).
American Psychological Association (APA):
Historical Cost. Retrieved November 21, 2019, from website:

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