Sentence examples for historic cost from inspiring English sources

And for derivatives, historic cost accounting is patently wrong.

In the past, most national accounting standards used historic cost.

Unlike historic cost, fair value fluctuates so balance-sheet items and profits fluctuate too (see table).

Historic cost may be harder to manipulate than the results of a model.

Banks hold some assets at market price, and some at historic cost.

In fact, all today's home microcomputers are astonishingly cheap compared to their historic cost.

Designed in the 1930s for an industrial age, financial statements, he argued, look backwards to historic costs; they give investors little clue about the future.

Under IFRS, the focus of accounts shifts from historic costs to "fair-value accounting": the fluctuations in the value of everything from pension promises to property portfolios will be reflected regularly in profit statements.

That has led to an increasing gap between the value of companies as measured by the stockmarket and the value measured by their accounts (their book value), although the difference has contracted of late along with the market values of technology companies (see chart 2).Off-balance-sheet holesAccounts certainly rely too heavily on historic costs.

Not every financial instrument has a deep and liquid market, and models are inexact.The crux of the problem is that the systems of accounting that have developed hitherto are mixed bags of both historic costs, which do not change with time, and fair values, which can vary a great deal.

The culprit is that the Pentagon uses historic costs to base how much a new weapon will cost.