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
All monetary amountsper se (meaning all values in the
economy) are not expressed in
terms of a relatively stable foreign currency.
All local currency monetary items (local currency bank values, bank statements,
cheques, local currency loans, etc.) are not
expressed in terms of a relatively stable foreign currency. They are expressed
in local currency values.
real value non-monetary items are expressed in terms of a relatively
stable foreign currency.
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