There is no substance in the statement that financial reporting simply reports on what took place. It can be correctly stated that the above statement has no substance when we refer to the IFRS-approved basic accounting option of continuous financial capital maintenance in units of constant purchasing power which requires the valuing of only constant real value non-monetary items in units of constant purchasing power during low inflation and deflation as orginally authorized in the Framework (1989), Par 104 (a) which states: “Financial capital maintenance can be measured in either nominal monetary units or units of constant purchasing power.”
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