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Friday, 3 August 2012

Unacceptable items in IFRS


Unacceptable items in IFRS



1. IAS 29 Financial Reporting in Hyperinflationary Economies.



It was duely implemented in Zimbabwe for at least the last six years during hyperinflation in that country: it had zero effect in the Zimbabwean hyperinflationary economy during those six years.



2. The IASB definitions of monetary items in IAS 21 and IAS 29.



All items paid or received in money are not monetary items. All economic items – monetary and non-monetary items – are generally paid or received in money as the monetary medium of exchange. A non-monetary item always paid or received in money does not transform that non-monetary item into a monetary item. It remains a non-monetary item always paid or received in money, e.g., salaries and wages.



3. The exclusion of measurement in units of constant purchasing from the FASB´s  and IASB´s joint list of possible basic measurement bases.



Measurement in units of constant purchasing power is a basic measurement basis continously applied in the world economy. Salaries, wages, rentals and many other items are generally measured in units of constant purchasing power on an annual basis in most of the world economy.





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