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."
Stop the stable
measuring unit assumption (i.e. stop Historical Cost Accounting).
1.Implement IFRS-authorised Capital
Maintenance in Units of Constant Purchasing Power in terms of a Daily Index.
2.Inflation-index all monetary items
daily in terms of a Daily Index with all money inside the banking system.
3.The Central Bank is required to pay
to (during inflation) or receive from (during deflation) commercial banks
interest in terms of the Daily Index on the total overnight cash balances in
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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