My comment below was promptly removed from
The Sunday Times article : Gill Marcus to replace Mboweni at SARB
“In terms of the Constitution, the primary objective of the South African Reserve Bank is to protect the value of the currency in the interest of balanced and sustainable growth,” Zuma said today. “ as per Bloombergs.
The implementation by SA accountants of the stable measuring unit assumption in their valuation of constant real value non-monetary items in the SA real economy is sustainable value destruction.
On the on hand, everyone in SA tries his or her best to contribute to sustainable growth in the SA economy.
At the very same time, SA accountants unknowingly perfected sustainable value destruction with their implementation of the stable measuring unit assumption. What brilliance in pervasive permanently sustainable value destruction throughout the whole economy: simply assume there is no inflation as far as constant items are concerned and you will destroy all of them never updated equally at the annual rate of inflation.
The stable measuring unit assumption: what a stroke of genius in sustainable value destruction.
For example: R3.338 billion at ABSA during 2008 under the Chairmanship of Gill Marcus. It is sustainable value destruction because ABSA´s accountants are unknowingly doing the same this year and will continue for an indefinite period of time as long as they implement the stable measuring unit assumption.
All SA accountants have to do to maintain about R200 billion in existing real value in the SA real economy and to stop unknowingly destroying about R200 billion in real value in the SA real economy is to freely select financial capital maintenance in units of constant purchasing power as they have been authorized to do 20 years ago when the IASB approved Par. 104 (a) in the Framework.
Kindest regards,
Nicolaas Smith
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