The cost of an asset that is calculated on the basis of its current replacement cost. The current cost approach (CCA) measures assets to be replaced at their fair market value rather than historical cost. This is mainly based on the premise that an entity is a going concern that replaces its assets on a continuous basis.

Current cost is the cost (measured in monetary terms) that would be incurred to replace an asset in the current period. Current cost may also imply the cost of manufacturing a product with the operational methods, materials, and conditions currently in use. Such materials and goods used in production are valued at their actual (or estimated) current market prices at the time the production process is carried out.