Wednesday, 28 April 2010

Do all SA accountants work for Goldman Sachs?

A 1% cut in average annual inflation from 6% to 5% will pump R53 billion almost evenly into the SA economy during twelve months:

R20 billion being maintained (instead of being destroyed by inflation) evenly in the real value of Rand money and other Rand monetary items in the SA monetary economy and a reduction by about R33 billion (thus R33 billion being maintained) of the real value SA accountants unknowingly and unnecessarily destroy in SA banks´ and companies´ Retained Earnings never maintained constant with sufficient revaluable fixed assets under the real value destroying Historical Cost Accounting model.

That still leaves about R167 billion unknowingly being destroyed by SA accountants in the SA real economy in banks´ and companies´ capital and profits never maintained this year and every year while average annual inflation stays at 5%.

SA accountants can easily stop this destruction of that R167 billion by freely changing over to financial capital maintenance in units of constant purchasing power as they have been authorized in IFRS in the Framework, Par 104 (a) twenty one years ago.

They refuse point blank to do this.

They will rather carry on year after year unknowingly, unnecessarily and unintentionally destroying that R167 billion in the SA real economy.

Seems like they are all working for Goldman Sachs.

Kindest regards

Nicolaas Smith

Copyright © 2010 Nicolaas J Smith

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