There are two totally
different processes of real value erosion involved in an economy during
inflation:
(1) One eroding the
real value of only monetary items not inflation-adjusted daily in terms of a
Daily CPI, namely, the economic process of inflation and
(2) A totally different
one eroding only the real value of constant real value non-monetary items not
maintained constant daily, namely, the implementation of the Generally Accepted
Accounting Practice of applying the stable measuring unit assumption during
inflation under HCA as authorized in IFRS in 1989.
Nicolaas Smith
Copyright (c) 2005-2012 Nicolaas J Smith. All rights reserved. No reproduction without permission.
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