CIPPA is an IASB approved alternative to Historical Cost Accounting

The International Accounting Standards Board´s Framework introduced the real value maintaining Constant ITEM Purchasing Power Accounting model as an alternative to the real value destroying traditional Historical Cost Accounting model in 1989 in Par. 104 (a) where it states that financial capital maintenace - not variable real value non-monetary items, e.g. property, plant, equipment, inventory, intangible assets, etc, - can be meansured in either nominal monetary units - the very destructive traditional HCA model - or in units of constant purchasing power: the CIPPA model. [10] The Framework is part of International Financial Reporting Standards.

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The CIPPA model is chosen by hardly any accountant in non-hyperinflationary economies even though it would maintain the real values of constant real value non-monetary items - e.g. issued share capital, retained income, other shareholder equity items, trade debtors, trade creditors, etc for an unlimited period of time. This is because the CIPPA model is generally viewed by accoutants as a 1970´s failed inflation-accounting model that requires all non-monetary items - variable real value non-monetary items and constant real value non-monetary items - to be inflation-adjusted by means of the Consumer Price Index.

The IASB did not approve CIPPA in 1989 as an inflation accounting model. CIPPA by measuring financial capital maintenance in units of constant purchasing power incorporates an alternative capital concept, financial capital maintenance concept and profit determination concept to the Historical Cost capital concept, financial capital maintenance concept and profit determination concept. CIPPA only requires all constant real value non-monetary items, e.g. issued share capital, retained income, all other items in Shareholders Equity, trade debtors, trade creditors, deferred tax assets and liabilities, taxes payable and receivable, all items in the profit and loss account, etc to be valued in units of constant purchasing power. Variable real value non-monetary items, e.g. property, plant, equipment, listed and unlisted shares, inventory, etc are valued in terms of IFRS and are not required in terms of the Framework, Par. 104 (a) to be valued in units of constant purchasing power.

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The IASB requires entities to implement IAS 29 which is a CPP inflation accounting model during hyperinflation.