Financial reporting and financial graphs are generally misleading because of
1.The use of Historical Cost Accounting, i.e., the use of the stable measuring unit assumption during inflation and deflation:
(a) not inflation-indexing monetary items in terms of a Daily Index and
(b) not measuring constant real value non-monetary items in units of constant purchasing power in terms of a Daily Index.
2. Natural scale graphs, i.e., not presenting graphs in semi-log scale.
This may take another 200 years to correct.
Nicolaas Smith
Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.
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