Update from Michael Stewart: "In response to comments you made about how you think that CMUCPP would have solved Zimbabwe's hyperinflation problem, I expressed a view about the effect of financial reporting on the economy. As you noted in your blog of 10 January 2013 I expressed a view that it is the actions that people take and the way that they use the information contained in financial reporting that I think can affect an economy, rather than just the financial reporting itself (in retrospect I accept that the language I used could have been more specific to the matter we were discussing, which was about how financial reporting could have solved Zimbabwe's hyperinflation problem)."
The staff member working with the IASB´s original very simple example, e-mailed me that he could not balance his simple balance sheet “due to lack of my understanding of the CMUCPP model”. I previously answered all his questions regarding the balancing of his low inflation balance sheet. In my opinion, he did not learn even the most basic principles of IFRS-authorised CMUCPP - in my opinion - proven by the fact that he could not even balance his own simple 10 line balance sheet (shown here) implementing IFRS-authorised CMUCPP with his chosen 100% inflation from one year to the next. He sent me his unbalanced balance sheet. I sent him my detailed balanced example with 231 209 127.83 percent actual annual Zimbabwe hyperinflation from annual inflation data supplied by Prof. Steve Hanke in his article On Measuring Zimbabwe´s Hyperinflation.
The term IASB is used in this blogpost as a general term for generally everyone involved in international standard setting activities at the "IASB". I do know and acknowledge that only actual IFRS authorised by the actual International Accounting Standards Board are actual pronouncements of the actual Board.
The opinions stated in this blogpost and all blogposts on this blog are my private opinions. Blogs are generally regarded as expressions of private opinions.
Copyright (c) 2005-2012 Nicolaas J Smith. All rights reserved. No reproduction without permission.