historiallisarvopohjaiset

Historiallisarvopohjaiset refers to a valuation method used primarily in accounting and finance. This approach involves recording assets and liabilities on the balance sheet at their original cost or acquisition value. The historical cost principle dictates that assets should be valued at the price paid for them at the time of purchase, and this value remains on the books until the asset is sold, disposed of, or fully depreciated. Similarly, liabilities are recorded at the amount incurred when they were created.

The key advantage of historical cost is its objectivity and verifiability. The original transaction price is usually a readily available and undisputed figure. This makes financial statements prepared under this method relatively straightforward to audit and less prone to subjective interpretation. It provides a tangible and factual basis for financial reporting.

However, the historical cost method has limitations. It does not reflect changes in market value over time. For assets that appreciate, their book value may significantly understate their current worth. Conversely, for assets that depreciate in value, the historical cost might overstate their realizable value, especially during periods of inflation. This can lead to a balance sheet that does not accurately represent the current economic position of a company. Despite these drawbacks, historical cost remains a fundamental principle in accounting due to its reliability and ease of application.