IFRS and US GAAP authorised CMUCPP maintains the constant purchasing power of constant real value non-monetary items (e.g. capital, all items in shareholders´ equity, provisions, salaries, wages, pensions, taxes, trade debtors/creditors, etc) in terms of a Daily CPI in entities that at least break even in real value during low and high inflation, hyperinflation and deflation - ceteris paribus. European Accounting Assoc: "Capital maintenance is a competing objective of financial reporting."
How to automatically maintain your compay´s capital (equity) constant in real value
How to automatically maintain your compay´s capital (equity)
constant in real value
Stop the stable
measuring unit assumption (i.e. stop Historical Cost Accounting).
IFRS-authorised Capital Maintenance in Units of Constant Purchasing Power in
terms of a Daily Index.
no monetary item overnight unless it is inflation-indexed on a daily basis
General Conditions of Sale (Contracts) has to state that outstanding
receivables and payables will be measured in units of constant purchasing power on a
daily basis in terms of a Daily Index from the date of sale (contract) till the
date of settlement.
Do not ask
the IASB for guidance in this issue. They do not understand IFRS-authorised
CMCUPP. Contact me for guidance at realvalueaccounting[at]yahoo.com.
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