A set of financial statements that an entity prepares on the historical cost basis of accounting. The use of historical cost (as a measurement base) implies that a preparer does not consider changes in the general price level in the economy or increases in the prices of items recognized in its books. Such statements, under hyperinflation accounting, need to be restated. For example, statement of financial position amounts measured using historical cost (and have not been updated using a measuring unit current at the end of a reporting period) are restated on the basis of a general price index such as CPI).

However, not all items (assets/ liabilities) are measured on the historical cost basis, such as those an entity is required, or is given an option, to measure at fair value. For example, biological assets are generally required to be measured at fair value, while an entity may have the choice to measure physical assets (PPE) at fair value. Likewise, other items such as non-monetary items are generally carried at cost or cost adjusted for depreciation; hence these items are measured at amounts current (prevailing prices) at the date of acquisition.