FSA question Historical cost question

Kapie

Hi
Can some explain me what is ment by historical cost in FSA?
Janga

bchadwick

I would assume that historical cost is what you originally paid for the asset at purchase. This would contrast with market, or “fair” value which is what it is worth today.

Analyze_This

Sure…thank u…
So when we metion a product value in our financial statement’s which value should go in – is it the historical value (or) the present value?

profil

It depends, but assets are recorded at their historical cost less accumulated depreciation. Some accounting standards do allow for market value, for instance securities, and also revaluations of PPE.
However, accounting and financial statements are largely based on historical information.

Chuckrox

historical cost is basically acquisition cost that includes transportation and installation costs that put the asset to its location and into use.