Historical cost: related pages
Current cost accounting Drawing up accounts using asset values based on the current replacement cost of assets.
Going concern principle The assumption for the purposes of accounting or valuation, or the fact in the case of a sale, that a business will continue to operate.
Book value The value of assets as shown on the balance sheet.
Fair value The value of an asset or liability in an arms length transaction between unrelated willing and knowledgeable parties. A concept used in many accounting standards including the IFRSs.
Depreciation The allocation of the cost of an asset to the profit and lost account by allocating part of the cost to each year of its estimated useful life.
Impairment The cost shown in the profit and loss account as the result of a fall in the value of an asset.
Copyright Graeme Pietersz © 2005-2019
