<Tr> <Td> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> </Td> </Tr> <Ul> <Li> </Li> <Li> </Li> <Li> </Li> </Ul> <P> In accounting under the traditional historical cost paradigm, historical cost is the original nominal monetary value of an economic item . Historical cost is based on the stable measuring unit assumption . In some circumstances, assets and liabilities may be shown at their historical cost, as if there had been no change in value since the date of acquisition . The balance sheet value of the item may therefore differ from the real value . </P> <P> While historical cost is criticised for its inaccuracy (deviation from real value), it remains in use in most accounting systems during low and high inflation and deflation . During hyperinflation, International Financial Reporting Standards require financial capital maintenance in units of constant purchasing power in terms of the monthly CPI as set out in IAS 29 Financial Reporting in Hyperinflationary Economies . Various corrections to historical cost are used, many of which require the use of management judgment and may be difficult to verify . The trend in most accounting standards is a move to more accurate reflection of the fair or market value, although the historical cost principle remains in use, particularly for assets of little importance . </P>

Historical cost is always a relevant measure of an asset