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."
Assets are not stated at cost per se as PricewaterhouseCoopers states. Some assets can be stated
at cost, but most are stated in terms of fair value, net realizable value, net
present value, recoverable value, etc. in terms of IFRS.
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