The historical value of an item or piece of property, also referred to as historical cost, is the initial purchase price of an asset. Over time, the value of an item may change based on market conditions, resulting in a conflict between the historical cost of an asset and its fair value, or market price. The principle of historical value comes into play most often in the accounting and finance world, where accurate reporting and financial information is paramount to the accuracy of financial statements, but it can also be used in other occupations.