IFRS and US GAAP authorised CMUCPP automatically maintains the constant purchasing power of constant real value non-monetary items (e.g. capital, all items in shareholders´ equity, provisions, salaries, wages, pensions, taxes, trade debtors/creditors, etc) only when updated in terms of the Daily CPI during low and high inflation, hyperinflation and deflation - ceteris paribus. European Accounting Association: "Capital maintenance is a competing objective of financial reporting."
wish to thank the following people and entities for helping me in this project
either directly or indirectly:
David Mosso, Vice Chairman (retired) at the Financial
Accounting Standards Board (1978-1987) and Chairman (retired) at the US Federal
Accounting Standards Advisory Board (1997-2006) for reading an abstract of my
work and for his comment: ‘Good work.’
Shiller from YaleUniversity for his clarifications to me regarding the
formula for calculating the Unidad de
Fomento in Chile.
Rachel Baskerville from The School of Accounting and Commercial Law at the
Victoria University in Wellington, New Zealand for taking the time in 2010 to
confirm the authorization of a third concept of capital maintenance in IFRS
with her colleague Prof.
Kevin Simpkins, the Chairman of the New Zealand Accounting Standards Review
Board and for her statement: ‘‘There is much to be gained from moving away
from reporting on the basis Financial Capital Maintenance in Nominal Monetary
Sir David Tweedie, Ex-Chairman
of the International Accounting Standards Board, and Prof.
Geoffrey Whittington, ex-member of the IASB, for their valued input in 2005
regarding that year’s version of the manuscript.
The South African Institute of
Chartered Accountants for their valued exchange of ideas regarding the project
Prof. Geoff Everingham,
Emeritus Professor of Accounting at the University of Cape Town,
for his valued exchange of ideas regarding the project in 2008.
SAICA´s and Prof. Everingham’s input in 2008 the project would not be where it
Prof. Steve Hanke from the
Cato Institute and JohnHopkinsUniversity
for his detailed assistance regarding currency boards to me prior to 2005 and
his assistance with the definition of severe hyperinflation more recently.
Gustavo Franco, Ex-Governor of the Banco
Central do Brazil for his contribution to confirm that trade debtors and
trade creditors are non-monetary items which have to be measured in units of
constant purchasing power during inflation and hyperinflation.
Lott, FASB Research Director and Kevin McBeth, FASB Project Manager for
clearing up my doubts regarding the treatment of capital maintenance during the
IASB and FASB´s Joint
Conceptual Framework Project.
Cemal KUCUKSOZEN, the Ex-Head of the Accounting Standards Department at the
Capital Markets Board of Turkey in Ankara,
for reading the 2005 version of the manuscript and for his comments including:
‘Theoretically, I totally agree with you. But, as you know, there is a trend
towards acceptance of International Accounting Standards and IFRS issued by the
IASB all over the world. In this regard, we can change over to Real Value
Accounting when there is a change in IAS / IFRS toward Real Value Accounting or
there is a trend toward Real Value Accounting all over the world.’ Constant
Item Purchasing Power Accounting was called Real Value Accounting in 2005.
Aylin POROY ARSOY from the UludagUniversity in Turkey for her information
regarding her article where she and Prof.
Dr Umit GUCENME state in 2005 that inflation has no effect on the real value of
DrFermín del Valle, Chairman of the Special
Commission created by the Federación Argentina de Consejos Profesionales de
Ciencias Económicas (FACPCE) in 2009, for making FACPCE´s 2010 research paper
to the IASB regarding the replacement of IAS 29 available to me in 2012.
Prof. Stephen Zeff from RiceUniversity
for his detailed assistance with inflation accounting to me in 2008.
The Canadian Institute of Chartered Accountantsfor providing copies of IAS 6 and IAS 15.
Technical Manager at the IASB for liaising with FACPCE regarding my access to
their 2010 research paper.
Vice President at The South African Institute of Chartered Accountants for his
assistance in getting my article Financial
Statements, Inflation & The Audit Report published in Accounting SA,
SAICA´s accounting journal, in 2007.
Julies, editor at Accounting SA, SAICA´s accounting journal for publishing my
Statements, Inflation & the AuditReport
in 2007 after I initially stated that I doubted very much that it would be
Ignacio Rodríguez from the Escuela de Administración, Pontificia Universidad
Católica de Chile for clarifying the use of the Unidad de Fomento in Chile to me in 2011.
Ignacio Velez-Pareja from the Universidad
Tecnologica de Bolivar, Department of Finance and International Business in
Colombia for his extensive discussions with me in 2009 regarding the effect of
Burgess, Resident IMF Representative in South
Africa in 2007 and Norbert Funke from the IMF for their
assistance in dealing with my questions regarding stabilization programs in
high inflation situations during Zimbabwe’s hyperinflation.
Octavio, the owner of the Venezuelan blog The
Devil’s Excrement and the commentators on his blog for sharing their experience
of hyperinflation under President Hugo Chávez in Venezuela.
Banco Central de Chile for
supplying me with detail of the extent of daily inflation-adjustment of the
money supply in Chile.
do Brasil for supplying me with detail regarding
daily indexing of non-monetary items during 30 years of hyperinflation in Brazil.
Africa for clarifications to me regarding the CPI in South Africa.
Fool, the owner of the Fool’s Paradise blog for bringing the Unidad
de Fomento to my attention in 2011.
Forum members for sharing with me the daily developments during the last two
years of Zimbabwe’s period of hyperinflation under President Robert Mugabe and
Gideon Gono, governor of the Reserve Bank of Zimbabwe.
Terry Clague, Publisher for Business, Management &
Accounting books at Routledge Publishers for his assistance in my attempt to get
published and his comment: ‘The quality of the book is not in question.’
Jonathan Norman, Publisher at Gower
Publishing for his role in my attempt to get published and his comment: ‘You
make a convincing case for the book.’
Academic Publishers in Cape Town
for offering me a publishing contract in 2005. Unfortunately we could not agree
on terms at the time.
daughter, for her enduring support for the project.