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."
Assets are not stated at cost per se as PricewaterhouseCoopers states. Some assets can be stated
at cost, but most are stated in terms of fair value, net realizable value, net
present value, recoverable value, etc. in terms of IFRS.
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