Capital Maintenance in Units of Constant Purchasing Power in terms of the Daily CPI

The objectives of general purpose financial reporting are: 1) Automatic maintenance of the constant purchasing power of capital in all ent...

SA accountants preparing their companies’ financial reports in compliance with IFRS are required, in terms of the IASB´s Framework, Par 104 ...

SA accountants doing their companies’ accounting in compliance with IFRS are required, in terms of the IASB´s Framework, Par 104 (a), to cho...

SA accountants consider their unknowing destruction of the real value of existing reported constant items in SA companies by their free choi...

In 2008 I agreed with the statement that inflation destroys the value of non-monetary items which do not maintain their real values. I agree...

It was stated that inflation destroys the value of non-monetary items which do not maintain their real values. I agreed at the time but late...

Capital is a constant real value non-monetary item. However, there is no constant real value non-monetary item capital in South Africa und...

The constant real value non-monetary items salaries and wages are generally sticky downwards: it is not easy for firms to reduce them in nom...

"One can say that capital, as a category, did not exist before double-entry bookkeeping". Werner Sombart Professor William Paton...

There are two processes of systemic real value destruction in the SA economy, although it is generally accepted that there is only one econo...

SA accountants unknowingly destroy the real value of reported Retained Profits in companies over time during low inflation implementing thei...

Most accountants agree  that "inflation influences reported results". Everybody blames "inflation". Yes, inflation destr...

Money cannot be declared by statute or by institutional definition to be a non-monetary item. Money is either money or it is not money. To b...

I am not dealing with the value of a business entity´s capital or stock as determined in the market. As we all know, the term capital has ...

1. Low inflation is helpful to economic growth. See previous blog. 2. Maintaining a zero inflation monetary policy can lead to unpredictab...

“The South African Reserve Bank (the SARB) is the central bank of the Republic of South Africa. It regards its primary goal in the South Afr...

Who drives inflation, Kalinka asked a day or two ago. Inflation is always and everywhere the destruction of the real value of money. Mai...

Who drives inflation, Kalinka asked a day or two ago. As I said: that is a very sensitive question – especially in South Africa. Inflation...

Kalinka, yesterday we saw that no-one gains in SA from inflation at the macro level. Who gains from inflation at the micro level? Everyo...

Kalinka asked me on the previous blog in South Africa: Who gains from inflation? Kalinka, Inflation is always and everywhere the destruc...