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Saturday, 30 May 2009

SA Inflation Facts as at March 2009

1347.9% The cumulative inflation rate in SA since January 1981.

160.3% The cumulative inflation rate in SA since April 1994.

50% of real value in all constant items never updated since April 1994 unknowingly destroyed by SA accountants by December 2005: i.e. in 11 years time by their implementation of the very destructive stable measuring unit assumption as part of the real value destroying traditional Historical Cost Accounting model.

50% of the real value of all Retained Earings in SA companies as at the end of April, 1994 unknowingly destroyed by SA accountants in 11 years.

61.6% of the real value of all retained earings in SA companies as at the end of April, 1994 unknowingly destroyed by SA accountants by March 2009.

61.6% of the real value of all issued share capital of all SA companies with no variable real value non-monetary items to revalue as at the end of April, 1994 unknowingly destroyed by SA accountants by March 2009.

This is the case when SA accountants choose - as they all do - to maintain the stable measuring unit assumption for an unlimited period of time during indefinite inflation when they choose to measure financial capital maintenance in nominal monetary units in terms of the IASB´s Framework, Par. 104 (a). SA accountants have unknowingly destroyed 61.6% of all Retained Earingins in all SA companies in this way since April 1994 - as long as they choose to maintain the stable measuring unit assumption for an unlimited period of time during indefinite inflation - all else being equal.


93.1% of the real value of all retained earings in SA companies as at the end of January, 1981 unknowingly destroyed by SA accountants by March 2009.

93.1% of the real value of all issued share capital of all SA companies with no variable real value non-monetary items to revalue as at the end of January, 1981 unknowingly destroyed by SA accountants by March 2009.

This is the case when SA accountants choose- as they all do - to maintain the stable measuring unit assumption for an unlimited period of time during indefinite inflation when they choose to measure financial capital maintenance in nominal monetary units in terms of the IASB´s Framework, Par. 104 (a). SA accountants have unknowingly destroyed 93.1% of all Retained Earingins in all SA companies in this way since January, 1981 - as long as they choose to maintain the stable measuring unit assumption for an unlimited period of time during indefinite inflation - all else being equal.