The general belief by some accountants that accounting is simply a matter of recording what happened in the past – as stated by some accounting professors – is completely untrue.
SA accountants value everything they account when they deal with the three basic economic items – monetary, variable and constant items - under low inflation in the SA economy.
The theory that 2% inflation is completely unharmful is also not true.
SA accountants would maintain existing constant item real values by not destroying them - as they are doing now to some portion of those constant items – with their very destructive stable measuring unit assumption as part of traditional Historical Cost Accounting.
On the other hand: they cannot create real value out of thin air by simply passing update entries when no real value exists. They do not do that.
Copyright © 2010 Nicolaas J Smith
Showing posts with label SA accountants value everything they account. Show all posts
Showing posts with label SA accountants value everything they account. Show all posts
Tuesday, 25 May 2010
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