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Sunday, 19 January 2014

Deloitte and Canadian AcSB support IASB´s delusional view that IFRSs do not permit financial capital maintenance in units of constant purchasing power during non-hyperinflationary conditions

Deloitte and the Canadian Accounting Standards Board support the IASB´s delusional view that IFRSs do not permit financial capital maintenance in units of constant purchasing power during non-hyperinflationary conditions

The IASB in its interpretation of this matter admitted that:







However the IASB managed to find two supporters - Deloitte and the Canadian Accounting Standards Board - for their delusional view that IFRSs do not permit financial capital maintenance in units of constant purchasing power during non-hyperinflationary conditions.

I suggested to the IASB during these proceedings that they contact top accounting authorities in formerly hyperinflationary countries like Dr Gustavo Franco, the ex-Governor of the Central Bank of Brazil and Dr Cemal Kucusozen from Turkey, but they simply rejected my suggestions. They rather rely on people who had no experience of high and hyperinflation. 

In fact, the IASB Interpretations Committee - in a very petty-minded way - stopped communicating with me, the submitter of this IFRIC request, when I pointed out to Michael Stewart, the IASB´s Director of Implementation Activities that his remark (during a 8 January 2013 teleconference regarding this topic) that "financial reporting has NO EFFECT on the economy" was completely wrong. 

The above views expressed by the IASB, Deloitte and the Canadia Accounting Standard Board carry little weight since they have previously clearly shown that they are clueless about the critical importance of the capital maintenance concept in the accounting framework as directly stated by Australia CPA and the Institute of Chartered Accountants of Australia, specifically about the IASB as follows:


Canadian accounting authorities demonstrated a similar lack of knowledge about capital maintenance during non-hyperinflationary conditions with the following reply from THE CERTIFIED GENERAL ACCOUNTANTS ASSOCIATION OF CANADA:

Nicolaas Smith 


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