What property valuation method considers the original price and does not account for depreciation?

The historical cost method is a property valuation approach that focuses on the original purchase price of an asset and does not factor in depreciation. This method provides a straightforward evaluation by recording the cost of acquiring the property at the time of purchase, reflecting the initial investment rather than adjusting for wear and tear or changes in market conditions over time.

By using historical cost, the valuation remains stable and predictable, making it useful for accounting and financial reporting purposes. This aligns with the need for consistency and reliability in financial statements, which is a critical aspect in risk management and investment analysis.

In contrast, other valuation methods, such as book value, replacement cost, and actual cash value, consider varying factors like depreciation, replacement costs, or market trends, which can fluctuate over time, thereby contributing to different valuation outcomes.