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Friday, 30 May 2008

CA´s can pump 100´s of billions of Rands into the economy

Finweek

SA Chartered Accountants can pump hundreds of billions of Rand into the SA real economy for an indefinite period of time when they stop their assumption that the Rand is perfectly stable only for the purpose of accounting salaries, wages, rent, issued share capital, retained income, taxes, trade debtors, trade creditors, etc. Now they destroy hundreds of billions of Rand in constant item real value by not maintaining that real value.

No-one forces them to implement the stable measuring unit assumption.

When they stop assuming the Rand is perfectly stable only for that purpose they will stop destroying hundreds of billions of Rand in constant item real value in the SA real economy for an indefinite period of time.

It will increase GDP, economic growth and job creation.

The benefits of SA Chartered Accountants abandoning the stable measuring unit assumption can scarcely be overestimated , especially as these are, in principle, unlimited in duration and accrue year after year.