historical basis
Standard cost is the cost which is basis to measure the actual cost historical cost is the initial cost
what is the definition of historical cost
The cost basis after the spin off was 27.99. In addition, the at-cost basis was at 72.01 of previous basis.
Historical cost is the cost of an item when it was originally acquired. Historical cost does not reflect the change of value over time that an asset undergoes.
on a historical basis
strength of historical cost accounting
what was big lots cost basis in 2006?
the two party system is rooted in the beginning of the nation itself therefore it contributes to a historical basis
Cost bases.
Limitations of historical cost accounting include : • Depreciation charged on historically costed assets is only an arbitrary amount based on out-of-date values and estimated useful economic lives. • Depreciation charges do not take into account actual replacement cost of assets at current prices. • Profit will not reflect the actual 'costs' of trading, which include the replacement of assets at some point in time. • By not accounting for inflation, there is no assurance that the entity is maintaining its capital base. • Overstating profits by undercharging depreciation based on historical cost, and charging cost of sales at historical cost of inventories (and not current cost) can lead to the depletion of an entity's capital through high tas charges and distributions. • While historical cost accounting provides a consistent basis for entities to prepare accounts, inflation affects different products and markets, and hence entities, to different degree. • Historical cost accounting makes it difficult for shareholders and analysis to assess the real performance and abiliry of mamagement because changes to current market conditions are not accounted for in the historical valuation basis. • The true valuation of entities is difficult to assess under historical cost rules. • Interpretation of accounts over a period of time is difficult because each year relates to different purchasing powers. • Key ratios (such as return on total assets) are inflated under historical rules because profit is overstated (as outlined...
cost basis medco spin off from merck