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Wednesday, 27 August 2008

R63.241 billion real value destroyed by CAs in 169 JSE listed companies

Updated: July 2008

Annual amount unknowingly being destroyed by South African Chartered Accountants in the real value of Retained Earnings in 169 companies listed on the Johannesburg Stock Exchange as a result of their implementation of the stable measuring unit assumption which is a Generally Accepted Accounting Practice:

R63.241 billion

This is a conservative calculation of the actual real value unintentionally destroyed by CAs during the 12 months to the end of July 2008 in the 169 JSE listed companies analyzed to date.

Current rate at which SA Chartered Accountants are unwittingly destroying the real value of all retained earnings balances in South African companies: 13.4% per annum.

SA Chartered Accountants are unknowingly killing the real economy in a massive way.

Next update: When the August 2008 CPI figure is released by Stats SA.

[Real Value date: July 2008 CPI 163.8 Annual monetary and non-monetary real value destruction rate: 13.4%. The non-monetary destruction rate applies to constant non-monetary items never updated, e.g. retained earnings. The above Rand value will be updated monthly in terms of future changes in the CPI.]