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Thursday, 22 May 2008

Accountants eroding real value

Accountants are eroding real value in South Africa each and every day with their assumption that the Rand is perfectly stable only when they account constant items like salaries, wages, taxes, retained income, issued share capital, etc in SA.

That is, they assume that changes in the Rand´s general purchasing power are not sufficiently important to require adjustments to the basic financial statements with regard to these constant items.

Accountants thus destroy hundreds of billions of Rand in real value in SA each and every year.
That will benefit everyone in SA for an indefinite period of time.

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