Definition: Historic cost accounting

Category: OECD terminology

Historic cost accounting is a valuation method which requires goods or assets used in production to be valued by the expenditures actually incurred to acquire those goods or assets, however far back in the past those expenditures took place. http://ec.europa.eu/eurostat/ramon/statmanuals/files/oecd_measuring_capital_2001_en.pdf
Source:
Organisation for Economic Co-operation and Development (OECD), "Measuring Capital - OECD Manual: Measurement of Capital Stocks, Consumption of Fixed Capital and Capital Services", Annex 1: Glossary of technical terms used in the Manual, Paris, 2001
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