IFRS and US GAAP authorised CMUCPP in terms of the Daily CPI automatically maintains the constant purchasing power of capital and all constant real value non-monetary items (shareholders´ equity,
provisions, salaries, wages, pensions, taxes, trade debtors/creditors, etc) only when updated daily in terms of the Daily CPI during low, high and hyperinflation and deflation - ceteris paribus. European Accounting Association: "Capital maintenance is a competing objective of financial
Stop the stable
measuring unit assumption (i.e. stop Historical Cost Accounting).
1.Implement IFRS-authorised Capital
Maintenance in Units of Constant Purchasing Power in terms of a Daily Index.
2.Inflation-index all monetary items
daily in terms of a Daily Index with all money inside the banking system.
3.The Central Bank is required to pay
to (during inflation) or receive from (during deflation) commercial banks
interest in terms of the Daily Index on the total overnight cash balances in
Do not ask
the IASB for guidance in this issue. They do not understand IFRS-authorised
CMCUPP. Contact me for guidance at realvalueaccounting[at]yahoo.com.
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