CIPPA concludes the process of how to automatically eliminate the very destructive effect of the stable measuring unit assumption (mistakenly believed to be caused by inflation) in entities´ constant real value non-monetary items, e.g. shareholders´ equity, forever in all entities that at least break even in real value during low inflation – ceteris paribus. This process was prematurely stopped in 1986 when the implementation of a form of financial capital maintenance in units of constant purchasing power required by US Financial Accounting Standard 89 was made voluntary.
“Theoretically I totally agree with you."
Nicolaas Smith Copyright (c) 2005-2011 Nicolaas J Smith. All rights reserved. No reproduction without permission.