Friday, 24 January 2014

Inflation to reach 30% in Argentina this year

Inflation to reach 30% in Argentina this year

The BBC reports:

"Despite efforts to support the economy, inflation has soared and many analysts expect it to reach about 30% this year."

The implemetation of Capital Maintenance in Units of Constant Purchasing Power in terms of a Daily Index by all entities in Argentina would stabilise the countries constant real value non-monetary economy overnight at no cost.

The Argentinian Accounting Federation presented the IASB in 2010 with a proposal to implement capital maintenance in units of constant purchasing power (restatement) in economies with annual inflation greater than 10% or cumulative inflation of 26% over three years.

The IASB, who has a "a lack of understanding about the fundamental role a capital maintenance concept has within the accounting framework" and is generally clueless about capital maintenance, has not even started the research process for the Board to determine whether the Argentinian proposal is a good idea or not.

I amended the Argentinian Federation´s proposal in 2012. The amendment is available HERE.

Nicolaas Smith Copyright (c) 2005-2014 Nicolaas J Smith. All rights reserved. No reproduction without permission.

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