Historical Cost Convention
What Is the Historical Cost Convention?
Under the Historical Cost Convention, assets and liabilities are initially recorded in the accounting system at their original or historical cost and are not adjusted for the subsequent increase in value.
About the Author
True Tamplin, BSc, CEPF®
True Tamplin is a published author, public speaker, CEO of UpDigital, and founder of Finance Strategists.
True contributes to his own finance dictionary, Finance Strategists, and has spoken to various financial communities such as the CFA Institute, as well as university students like his Alma mater, Biola University, where he received a bachelor of science in business and data analytics.