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Friday, 6 June 2014

Capital Maintenance in Units of Constant Purchasing Power stops destruction of real value under HCA

IFRS and US GAAP authorised Capital Maintenance in Units of Constant Purchasing Power™ (CMUCPP) maintains the constant purchasing power of constant real value non-monetary items (salaries, wages, pensions, taxes, trade debtors/creditors, equity) only in terms of a Daily CPI in entities that break even in real value in inflation and deflation - ceteris paribus

It would stop the global destruction by the stable measuring unit assumption in constant items of hundreds of billions of USD p.a. now taking place under traditional Historical Cost Accounting.

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