Under historical cost measurement, assets are measured according to the amount of cash or cash equivalents paid at the time of acquisition, or according to the fair value of the consideration paid at the time of acquisition.

Liabilities are measured according to the amount of money or assets actually received due to current obligations, or the contract amount of current obligations, or the amount of cash or cash equivalents expected to be paid in daily activities to repay liabilities.

Extended data:

It is reasonable to follow the historical cost principle:

(1) Historical cost is the virtue result of buyers and sellers in the market, which reflects the market price at that time and conforms to the sanitary principle;

(2) Historical cost is based on original documents, and there are verifiable methods;

(3) The historical cost data is easy to obtain, simple and easy to operate, which is related to realization principle;

(4) Historical cost valuation does not need to adjust accounts frequently, which can prevent accounting records from being changed at will and maintain the reliability of accounting information.

It should be noted that under normal circumstances, due to the reliability and accuracy of accounting statements and accounting, the book value of accounting statements and accounting is calculated by historical cost view, which is caused by different judgments on market prices.

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