Saturday, 28 August 2010
Two methods to calculate the net monetary loss or gain
Accountants have to calculate the net monetary loss or gain from holding monetary items when they choose the Constant Purchasing Power Accounting (CIPPA) model where under they measure financial capital maintenance in units of constant purchasing power in the same way as the IASB requires its calculation and accounting during hyperinflation. There are net monetary losses and net monetary gains during low inflation too, but they are not required to be calculated when accountants choose the traditional HCA model.
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Copyright © 2010 Nicolaas J Smith
Posted by Nicolaas Smith at 22:27