Originalwert

Originalwert refers to the initial or historical cost of an asset. This is the price that was paid for an asset when it was first acquired, including any directly attributable costs to bring it to its intended use. For tangible assets like property, plant, and equipment, the original cost typically includes the purchase price, installation costs, and any other expenses incurred to make the asset operational. For intangible assets, it would encompass acquisition costs, legal fees, and registration fees. The concept of originalwert is fundamental in accounting and finance, serving as a basis for depreciation calculations and for determining gains or losses when an asset is sold. It represents the historical investment made in an asset, distinct from its current market value or replacement cost. This historical cost principle ensures that assets are recorded at their actual transaction price, providing a verifiable and objective measure. Over time, the originalwert is adjusted through depreciation or amortization to reflect the asset's usage and decline in value. When an asset is disposed of, the difference between the originalwert (net of accumulated depreciation/amortization) and the proceeds from the sale determines the gain or loss recognized in financial statements.