A slightly diffirent presentation of inflation facts for South Afrca. It would
be quite interesting to calculate the amount of real value destroyed over the
last 5, 10, 15, 20, 25 years, etc.
Annual inflation 6.4%
Annual destruction in real value of Rand by inflation R128 billion aprox
Annual constant item real value destruction by the implementation of the
stable measuring unit assumption by SA accountants R200 billion aprox
Cumulative inflation since Jan 1981 1 386.3%
Cumulative inflation since Apr 1994 167.2%
Real value unknowingly destroyed by SA accountants in Shareholders´ Equity items having remained in SA companies from Jan 1981 to Aug 2009 without an equivalent investment in fixed assets with the same fair value (revalued or with undisclosed holding gains) as a result of Historical Cost Accounting. 93.3%
The equivalent value from Apr 1994 to Aug 2009. 62.6%
Kindest regards,
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