For an asset, it is the price (entry price) that an entity paid or would have had to pay some time back (in the past) for acquiring that asset, plus, or irrespective of, any prices/ costs that it paid or would have paid or incurred for related goods or services (acquisition costs). Examples of acquisition costs include sales tax, transportation, delivery and installation costs.

For a liability, it is the price (entry price) that an entity received or would have received some time back (in the past) for a liability incurred by the entity, less or, irrespective of, the prices/ costs it incurred or would have incurred for related goods or services (extinguishment or transfer costs). It may also refer an amount charged in the past for incurring a non-exchange liability. Examples of related costs include underwriting costs (associated with issuance of debt).

Past entry price, for an asset, is sometimes referred to as historical cost or past purchase price. For a liability, it is known as historical cost or historical proceeds.