Notes to the accounts. 1. Statement of accounting policies. The financial statements have been prepared in accordance with the Financial Reporting Manual. Practical applications of historical cost accounting. Historical cost accounting records assets at their original purchase price and adjusts that value over time through depreciation. This method is commonly used because of its simplicity and objectivity. Here are some examples of how historical cost accounting applies in the real world, in policy and evaluation. shows that the variables have no significant effect on the after-tax profit of manufacturing companies when accounting at historical cost. Policy and evaluation of the. shows that the variables have no significant effect on the after-tax profit of manufacturing companies when accounting at historical cost.