Difference Between Historical Cost and Fair Value

Key Difference – Historical Cost vs Fair Value

历史成本和公允价值是记录的两种关键方法non-current assets和金融工具。对于非流动资产，公司有权使用历史成本或公允价值，而金融工具通常以公允价值记录。历史成本和公允价值之间的关键区别在于the value of noncurrent assets is valued at the price spent to acquire the assets under historical cost, assets are shown at an estimate of themarket valuewhen using the fair value.

内容：
1.Overview and Key Difference
2.什么是历史成本
3.What is Fair Value
4.Side by Side Comparison – Historical Cost vs Fair Value
5。概括

什么是历史成本？

历史成本是计算会计价值的衡量标准，在该会计中，资产资产的价格基于公司收购时的原始成本。历史成本方法用于资产公认的会计原则（GAAP）.

例如,ABC公司bought a property including land and buildings for $200,250 in 1995. Its market value today approximately is $450,000. However, the company continues to show this asset at $200,250 in financial statements, which is its original value.

不管用于后续测量的措施如何，所有非流动资产都应以成本为代价。对于非流动资产，根据其原始价值也包括在内IAS 16-Property, Plant and Equipment.

• 现场准备成本
• 安装成本
• 运输，运输和处理成本
• 建筑师和工程师的专业费用

Under the Historical Cost method, the asset is carried at the net书价(花费更少accumulated depreciation)

记录资产的历史成本方法不那么复杂，因为原始资产价值没有发生变化，从而导致价格有限。但是，这并不能准确地描述了公司资产的价值。

什么是公允价值？

This is the price at which a seller and a buyer can enter into a transaction under normal market conditions. All assets that are subjected to market fluctuations have a fair value. However fair value should be able to be measured reliably to record assets according to this method. Accounting treatment for fair value is governed by IFRS 13-fair value measurement. ‘Exit price’ is the price at which the asset can be sold off subjected to the market conditions. Considering the above example, ABC Company may decide to record the land and buildings at $450,000 in case the asset is valued at fair value.

According to this method, the non-current asset is carried at the fair value less depreciation. To practice this method, the fair value should be able to be measured reliably. If the company cannot derive at a reasonable fair value, the asset should be valued using the cost model in IAS 16, assuming that the resale value of the property is zero as stated in IAS 16.

可销售的金融工具以公允价值持有。这些本质上是非常液体的（可以通过出售安全很容易转化为现金）；因此，应以公允价值记录。此类证券的一些例子是

国库券

这是政府为满足短期融资需求而发行的短期安全。但是，国库账单不带利息，以其原始价值折扣。

商业纸

Commercial paper is a short-term unsecured debt issued by a company usually with a maturity period ranging from 7 days to 1 year. This is typically issued to finance short-term debts of the company.

Certificate of Deposits (CDs)

CD是发行固定利率和固定期限期的证券，范围从7天到1年。

When assets are valued at their fair value, this represents the current price at which they can be sold. This provides a more reliable value compared to using historical cost. However, calculating fair value has to be done regularly and is costly and time-consuming.

历史成本和公允价值有什么区别？

历史成本与公允价值
历史成本是用于获取资产的原始价格。	Fair value is the price at which the asset can be sold in the market.
Accounting
Guidance is available in IAS 16.	IFRS 13中提供了指南。
Asset Value
Historical cost is understated and obsolete	Fair value reflects the prices in line with current market value

概括– Historical Cost vs Fair Value

The difference between historical cost and fair value primarily depends on the accounting treatments. While the management has the discretion to select an appropriate method, they should be careful not to overstate the value of assets if fair value method is considered which will give assets an unrealistically high value. Even though the use of historical cost is a fairly straight forward method it does not reflect most recent value of the assets.

Reference:
1. “IAS Plus.” IAS 16 – Property, Plant and Equipment. N.p., n.d. Web. 16 Feb. 2017.
2. “IAS Plus.” IFRS 13 – Fair Value Measurement. N.p., n.d. Web. 16 Feb. 2017.
3. “Fair Value.” Investopedia. N.p., 21 Sept. 2016. Web. 16 Feb. 2017.
4.“历史成本。”Investopedia。N.P.，2015年7月23日。2017年2月16日。

Image Courtesy:
1. “United States Commercial Paper 2001 to 2007 titles” By 84user – created using data from the United State’s Federal Reserve Board Commercial Paper – last released Friday, October 31, 2008 (Public Domain) via下议院维基梅迪a