In accounting, the historical cost is one of the basic valuation criteria for the concepts of assets and liabilities that is basically identified with the acquisition cost.[1]​[2]​.

Valuation at historical cost is one of the priority criteria used in International Financial Reporting Standards. Its acceptance has been based on the objectivity and simplicity of its application, for the objectivity it provides by being supported by documents that establish the price and payment method and for the simplification of the valuation process by keeping it in its initial record. It is opposed to reasonable value.[3]​.

According to the General Accounting Plan, the historical cost or cost of an asset is its acquisition price or production cost.[4]​.

The acquisition price is the amount in cash and other equivalent items paid or pending payment plus, where appropriate and when applicable, the fair value of the other considerations committed derived from the acquisition, all of which must be directly related to it and be necessary to put the asset in operating conditions.

The production cost includes the acquisition price of raw materials and other consumables, that of the production factors directly attributable to the asset, and the reasonably corresponding fraction of the production costs indirectly related to the asset, to the extent that they refer to the period of production, construction or manufacturing, are based on the level of utilization of the normal working capacity of the means of production and are necessary to put the asset in operating conditions.

The historical cost or cost of a liability is the value corresponding to the consideration received in exchange for incurring the debt or, in some cases, the amount of cash and other equivalent liquid assets that are expected to be delivered to settle a debt in the normal course of business.