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
Inflation only affects monetary items in financial statements
Inflation only affects monetary items in
statement The effects of inflation in financial
statements is a very common statement in accounting literature, international
accounting standard setting, central banking research and in accounting in
only affects the real value on monetary items and nothing else. Inflation has
no effect on the real value of non-monetary items. The stable measuring unit
assumption affects the real value of non-monetary items.
intended with the statement The effects
of inflation in financial statements is to state: The effects of (1) inflation
on monetary items and (2) the stable measuring unit assumption on non-monetary
items in financial statements.
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