IFRS and US GAAP authorised CMUCPP automatically 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) only when updated in terms of the Daily CPI during low and high inflation, hyperinflation and deflation - ceteris paribus. European Accounting Association: "Capital maintenance is a competing objective of financial reporting."
Generally people do not accumulate wealth in a stable
foreign currency. It is often forbidden and a crime to accumulate wealth in a
stable foreign currency in a country with hyperinflation.
If what PricewaterhouseCoopers state above was true,
then it would be no problem dealing with hyperinflation in a hyperinflationary
country. Often the single biggest problem in a hyperinflationary country is
that it is a crime to trade in and to hold especially the US Dollar.
It would be relatively easy to solve the monetary
problem of hyperinflation if it were always legal to hold and freely trade in
especially the US Dollar in hyperinflationary countries. All people would have
to do would be to buy US Dollars every end of the day with excess local currency.
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