What is the difference between historical cost and current cost? And which we use for fixed assets?

Historical Cost is the cost incurred during the purchase of the fixed asset. Current cost is the book value or the remaining value or depreciated value of the fixed asset. We use both cost depending on the requirement. We record the fixed asset initially at historical cost, then, to be depreciated along its estimated useful life, net of salvage value, if any. 

1. Historical cost is asset's purchasing or constructed value after deducting accumulated depreciation
2. Current cost is asset's fair value at the time of reporting   

According to IFRS you have the choice to use any of them

Historical cost accounting versus current value accounting. _Historical Cost is the aggregate price paid by a firm to acquire ownership and use of sn asset, including all payments necessary to obtain the asset in the location and condition required for it to provide services in the production or other operation of the firm. _Historicsl cost is relevant gor making economic decisions. _Current costs reflect the price that must be paid for an asset or its use st date of the balance sheet. Current costs for inventories is the current acquisition price of the merchandise or the current cost to produce it

One of the foundations of American accounting is the so-called Historical Basis approach, under which assets are presented on the balance sheet at their value at the time of acquisition (generally represented by the purchase cost). But in an era marked by the widespread use of complicated financial instruments and risk management strategies that may render yesterday’s prices obsolete, some people are asking if historical cost should be abandoned or modified, and replaced by a current-cost system. It could lead to more accurate financial reporting. Or it could lead to chaos.

measure of value used in accounting in which the price of an asset on the  balance sheet is based on its nominal or original cost when acquired by the company current cost is the cost that would be required to replace an asset in the current period

 the both  are used to  value the fixed assets

 

There are two methods to calculate the value of fixed assets of company. One is value of fixed assets on the basis of historical cost and other is on the basis of fair value. But there are many differences between historical cost and fair value.

First : Fair Valonue may effect different assets different ways. But historical cost never effect its book value. 

Second : For calculate of fair market value of any asset, depreciation may be deducted or not as per the nature of asset.

       

Under the historical cost doctrine, assets are generally carried on the balance sheet at their acquisition cost (adjusted for depreciation and, in some cases, impairment), and liabilities are usually carried at the prices at which they were incurred.

Current cost is the cost that would be required to replace an asset in the current period. This derivation would include the cost of manufacturing a product with the work methods, materials, and specifications currently in use. The concept is used to generate financial statements that are comparable across multiple reporting periods

Historical cost is original cost of an asset while purchased or installed. Current cost is as on date value after applicable depreciation.