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Showing posts with label IAS 29 doubly flawed. Show all posts
Showing posts with label IAS 29 doubly flawed. Show all posts

Monday, 19 May 2008

IAS 29 doubly flawed

It is not only flawed in it´s definition of monetary items as being money held and "items to be received or paid in money" (everything is received or paid in money - both monetary and non-monetary items) but also when it states that Retained Income in the first period of restatement is the balancing figure after restatement of all other balance sheet items.

This is a very serious mistake by the IASB.

Retained Income is a constant real value non-monetary item like Issued Share Capital and should be restated at the daily parallel rate or daily index rate in hyperinflationary economies and at the monthly inflation rate in non-hyperinflationary economies from the date it came about to today´s date.

The book "RealValueAccounting.Com - The next step in our fundamental model of accounting" which is available as a free download from a link on this blog, followed the flawed IASB approach.

This will be corrected in the new book: "Killing the real economy - South African Chartered Accountants unwittingly destroy real value on a massive scale." Unpublished.