Audited Historical Cost financial reports do not fairly present the financial position of SA companies unless
- the directors inform the shareholders that they are destroying real value in the company with normal Historical Cost Accounting;
- how much they are destroying with HCA;
- how much they will gain when they stop HCA;
- how much they will gain when they freely change over to financial capital maintenance in units of constant purchasing power as authorized in International Financial Reporting Standards in the Framework, Par 104 (a) twenty one years ago;
- they state why they choose HCA when they know they destroy real value in the company.
Both the auditors and the directors have a duty not to implement inappropriate accounting policies.
Kindest regards
Nicolaas Smith
realvalueaccounting@yahoo.com
Copyright © 2010 Nicolaas J Smith
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