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Tuesday, 18 August 2009

Trust me, I´m a SA accountant

Trust me, I am a SA accountant.

I will - unknowingly and unintentionally - destroy your Retained Profits at a rate equal to the rate of inflation (currently 6.9% - you can make your own calculations) as well as all your other constant real value non-monetary items never updated that I and all my fellow accountants (except Nicolaas Smith) - many of whom are CA(SA)s - value in nominal monetary units, i.e. at Historical Cost, implementing our very destructive stable measuring unit assumption as part of the traditional generally accepted real value destroying Historical Cost Accounting model as authorized by the IASB in the Framework, Par. 104 (a) which states:

"Financial capital maintenance can be measured in either nominal monetary units OR IN UNITS OF CONSTANT PURCHASING POWER."

In this way we unknowingly and unintentionally destroy at least R200 billion in the SA real economy each and every year as we did last year and as we will do for ever more as long as we implement our very destructive stable measuring unit assumption during indefinite inflation.

Signed: SA accountant