Inflation August, 2009

A slightly diffirent presentation of inflation facts for South Afrca. It would
be quite interesting to calculate the amount of real value destroyed over the
last 5, 10, 15, 20, 25 years, etc.

Annual inflation 6.4%


Annual destruction in real value of Rand by inflation R128 billion aprox


Annual constant item real value destruction by the implementation of the
stable measuring unit assumption by SA accountants R200 billion aprox


Cumulative inflation since Jan 1981 1 386.3%


Cumulative inflation since Apr 1994 167.2%


Real value unknowingly destroyed by SA accountants in Shareholders´ Equity items having remained in SA companies from Jan 1981 to Aug 2009 without an equivalent investment in fixed assets with the same fair value (revalued or with undisclosed holding gains) as a result of Historical Cost Accounting. 93.3%


The equivalent value from Apr 1994 to Aug 2009. 62.6%


Kindest regards,

SA inflation facts as at the end of April, 2009

Annual inflation: 8.4% as at April 2009

Cumulative inflation since Jan 1981: 1 354.8%

Cumulative inflation since Apr 1994: 161.6%

Cumulative real value destruction since Jan 1981: 93.1%

Cumulative real value destructionm since April 1994: 61.8%

Real value unknowingly destroyed by SA accountants in all Retained Earnings remaining in SA companies from Jan 1981 to Apr 2009

93.1%

Real value unknowingly destroyed by SA accountants in Issued Share Capital of all SA companies with no variable real value non-monetary items to revalue from Jan 1981 to Apr 2009

93.1%

Real value unknowingly destroyed by SA accountants in all Retained Earnings remaining in companies from Apr 1994 to Apr 2009

61.8%

Real value unknowingly destroyed by SA accountants in Issued Share Capital of all SA companies with no variable real value non-monetary items to revalue from Apr 1994 to Apr 2009

61.8%