Historical Cost Concept As It Applies To Long Term Operational Assets In Accounting Essays and Term Papers

  • Long-Term Asset Impairment

    In March of 1995 the Financial Accounting Standards Board issued Statement No. 121 "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of". The statement established accounting standards for the impairment of long-lived assets, certain identifiable intangibles...

    2283 Words | 6 Pages

  • Long Term Asset

    revaluation model The revaluation model is an alternative to the cost model for the periodic valuation and reporting of long-lived assets. IFRS permit the use of either the revaluation model or the cost model, while under GAAP; only the cost model is permitted. Revaluation model changes the carrying amount...

    1848 Words | 7 Pages

  • Poa-Historical Cost Concept

    Historical Cost Concept Definition: Historical cost concept is an accounting concept that states that all assets in the financial statement should be reported based on their original cost, at the time of purchase. Example: James buys a building for $2,000,000 ten years ago, the value of the building...

    548 Words | 2 Pages

  • The Historical Cost Convention Used in Historical Cost Accounting

    The historical cost convention used in historical cost accounting, records transaction at the monetary value at the date of transaction (i.e. their historical cost). An asset or liability being measured using the historical cost basis is recognized initially at transaction cost. This convention is used...

    254 Words | 1 Pages

  • The historical cost accounting convention.

    matching-based, historical cost accruals accounting (HCA) has for over fifty years been repeatedly challenged as being an inadequate basis for the measurement of "income" which reports increments in the value of businesses. Such challenges continue unabated and are made by both accounting standards regulators...

    2266 Words | 7 Pages

  • Historical Cost Accounting

    that the current form of accounting that we use, the historical cost model, is no longer adequate for accounting in the 21st century and that it should be replaced with a more appropriate model such as the present value model. Those with this opinion argue that the historical cost model is irrelevant because...

    746 Words | 2 Pages

  • Criticism on Historical Cost Accounting

    Criticism on historical cost accounting 1. Inability to provide useful information in times of rising prices * Assumes that money holds a constant purchasing power, so the result become irrelevance in times of rising prices * Received much criticism during high inflation periods of...

    482 Words | 2 Pages

  • Concept of Long Term Care

    Eating Fish and Eye Disease Sandra Hall HCS/438 March 21, 2011 Curtis Ramsey Eating Fish and Eye Disease The New York Times has reported that eating fish in a regular diet has more benefits. The article explains that the Harvard Women’s Health study says people that eat fish once a...

    645 Words | 2 Pages

  • Concept of Long Term Care

    essay it explains how week one reading changes my concept of long term care. The essay will provide two examples of current events related to long-term care and how it has changed. The paper will focus on examples of current events related to long-term care, and how might these examples increase awareness...

    402 Words | 1 Pages

  • Historical Cost Accounting

    keeping aware of the historical cost convention could be misleading under such common circumstances is vital for the users of these financial statements. And the problems that HCA can be encountered are: Not only the cost of fixed assets would be distorted, the net book value of assets would also be distorted...

    2360 Words | 6 Pages

  • Historical Cost Accounting

    Historical cost is a traditional method of recording assets and liabilities at their original or nominal value without making adjustments for inflation. It first came in evidence in Jun 1979 in a French project after numerous debates. The historical cost principle states that the asset should include...

    879 Words | 3 Pages

  • Comparison with Historical Cost Accounting

    Comparison with Historical Cost Accounting The main alternative to fair-value accounting is “historical-cost accounting.” Here, assets are recorded at historical cost, which generally equals the fair value when the assets were originally purchased. Subsequently, historical costs are adjusted for...

    284 Words | 1 Pages

  • Cost Terms, Concepts, and Classifications

    Chapter 2 Cost Terms, Concepts, and Classifications Learning Objectives LO1. Identify and give examples of each of the three basic manufacturing cost categories. LO2. Distinguish between product costs and period costs and give examples of each. LO3. Prepare...

    9399 Words | 53 Pages

  • Notes on Cost Accounting Concepts

    Cost Concepts Semester II Basic TermsCost is the amount of expenditure, actual (incurred) or notional (attributable), relating to a specific thing or activity. The specific thing or activity may be a product, job, service, process or any other activity • Expenses are expired costs, incurred...

    1535 Words | 8 Pages

  • Accounting Terms and Concepts

    profit margins per transaction, dollar sales, profit levels by day, dollar sales, and profit margins by them through Point-Of-Sale systems and the accounting department. In an effort to leverage this information to create an individual-based shopping experience (or dossier) the practice of behavioral...

    1467 Words | 5 Pages

  • Advantages and Disadvantages of Historical Cost Accounting

    Advantages and disadvantages of Historical Cost accounting Historical cost accounting has been a controversial method that experienced many criticisms over a period of time, especially since it considers the acquisition cost of an asset and does not recognize the current market value. Merits and demerits...

    656 Words | 3 Pages

  • Effective Long-Term Cost Reduction

    ‘Effective Long-Term Cost Reduction: a Strategic Perspective’ is a study by Michael D. Shields, and S. Mark Young, that deals with the Cost Reduction Programs that were employed in the late 1970s, and throughout 1980s. The study further sets forth a more viable basis for effective long-term cost reduction...

    842 Words | 3 Pages

  • An Introduction to Managerial Accounting and Cost Concepts

    Introduction to Managerial Accounting and Cost Concepts Introduction to Managerial Accounting MSc. Mohammad Hicham Khalil Objectives 1. Comparison of Financial and Managerial 2. 3. 4. 5. 6. 7. 8. Accounting. General Cost Classifications. Product Cost versus Period Cost. Cost Classifications on Financial...

    4523 Words | 32 Pages

  • Managerial Accounting Basic Cost Concept

    Question 1 Product costs are costs that are associated with manufactured goods until the time period during which products are sold. It involved all costs in acquiring or making a product. These costs consist of direct materials, direct labour and manufacturing overhead. Product costs are initially assigned...

    844 Words | 4 Pages

  • One Hundred Cost Term in Accounting

    100 Costs term 1. Absorption costing is a costing method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished unit of product. 2. Administrative costs are all executive, organizational, and clerical costs...

    2246 Words | 6 Pages