Essays Tagged: "Historical cost"
The historical cost accounting convention.
INTRODUCTIONRealised-profit, matching-based, historical cost accruals accounting (HCA) has for over fifty years been repeatedly challenged as bei ... ounting model, look at possible alternatives and finally will provide a detailed explanation of why Historical Cost accounting is still the conventionally used method.What are Historical Costs?Histori ... accepted accounting principle requiring all financial statement items be based upon original cost. Historical cost means what it cost the company for the item. It is not fair market value. This means ...
Subjects: Businesss Research Papers > Accounting
Accounting For Managers
GIN OF SAFETY1EVALUATION OF ESTIMATED PLANS3LIMITATIONS OF BREAK-EVEN ANALYSIS4ACCOUNTING CONCEPTS: HISTORICAL COST, PRUDENCE, ACCRUALS, AND GOING CONCERN5ACCRUALS6PRUDENCE7GOING CONCERN8HISTORICAL CO ... t the firm would make a profit, it is a significant planning tool. Anon3 (2003)ACCOUNTING CONCEPTS: HISTORICAL COST, PRUDENCE, ACCRUALS, AND GOING CONCERNAccounting is relied on specific assumptions. ...
Subjects: Businesss Research Papers > Accounting
Cost Accounting
t and price fixing through the use of variance analysis. It is also used because calculation of the historical cost may be expensive for an organization. Historical data varies day to day, so there ar ... ay be expensive for an organization. Historical data varies day to day, so there are no uses of the historical data for the price fixing. Historical data are also not an accurate measurement of effici ...
Subjects: Businesss Research Papers > Accounting
Accounting convention
n be both an counting entity and a legal entity, provided that it is not a holding company.Historic cost convention:This convention holds that the cost of assets shown on the balance sheet must be bas ... convention holds that the cost of assets shown on the balance sheet must be based on their historic cost (that is acquisition cost). This way of measuring asset value is preferred over other methods b ...
Subjects: Businesss Research Papers > Accounting
Recognition and Measurement in Financial Statements
e measured and the unit of measure.When putting a value on assets, an accountant can either use the historical cost or the current value. These are the characteristic or attribute of an item according ... e. These are the characteristic or attribute of an item according to which it should be quantified. Historical cost is simply the cost incurred by an entity when buying an asset. The same cost will be ...
Subjects: Businesss Research Papers > Accounting