Balance sheet constant real value non–monetary items are valued under HCA using the traditional HC model in terms of which the very erosive stable measuring unit assumption is applied. This unknowingly, unintentionally and unnecessarily erodes the real values of constant real value non–monetary items never maintained constant at a rate equal to the annual rate of inflation. Unknowingly, unintentionally and unnecessarily the wrong choice is made. Since everyone does it, since it is the traditional, generally accepted choice and since it is also authorized in the original Framework (1989), Par 104 (a) which is applicable in the absence of specific IFRS, it results in the Historical Cost Mistake.
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