Abstract: Through the analysis of the variation of the economic value of accounting elements and decisive factors of the value,the author  points out that “historical cost” can not bring the real “authenticity” in an economic system that price is being changed constantly;and he gives a new explanation to the meaning of accounting elements basing on institutional economics and demonstrates that the common essence of the accounting element lies in “the value in future”.In order to give consideration to “useful decision making” in the value assessment of accounting elements and the easy using of “cost-effective principle”,he proposes that the bridge of “historical cost” and “future value” is “present value”.

Key words: historical cost, future value, present value, accounting element, institutional economics