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Saturday, 11 May 2013

Definition of Capital Maintenance in Units of Constant Purchasing Power



Capital Maintenance in Units of Constant Purchasing Power (CMUCPP) is the maintenance of the constant purchasing power of capital - capital being equal to the real value of net assets - for an indefinite period of time at all levels of inflation and deflation in entities that at least break even in real value – ceteris paribus – in units of constant purchasing power in terms of an index that recognizes all  - normally daily - changes in the general price level.
Updated on 13-05-2013


Nicolaas Smith

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