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

Definition: Money illusion is the mistaken belief that money is stable – as in fixed – in real value over time. Money illusion is primaril...

Entities with net monetary assets (weighted average of monetary assets greater than weighted average of monetary liabilities) over a period ...

Deflation is a sustained absolute annual decrease in the general price level of goods and services. Deflation happens when the annual inflat...

Inflation is always and everywhere a monetary phenomenon. Milton Friedman, A monetary history of the United States 1867 - 1960 (1963) In...

Money is the greatest economic invention of all time. Money did not exist and was not discovered. Money was invented over a long period of t...

Auditors state in the audit report that the directors´ responsibility for the financial statements includes selecting and applying appropria...

Audited annual financial statements provided by SA companies which prepare them using the traditional Historical Cost basis, i.e., when the ...

If after the weekend killing of Eugene Terreblanche it so happens in the months and years to come that Julius Malema´s song "Kill the B...

Accountants simply assume that changes in the real value or constant purchasing power of the functional currency (money) are not sufficientl...

The terms constant real value non-monetary items and variable real value non-monetary items are new specific terms for old concepts. IFRS ...

“In most countries, primary financial statements are prepared on the historical cost basis of accounting without regard either to changes in...

No, he or she is not! It is all actually quite simple to understand: your accountant ASSUMES there is NO inflation (that the Rand is PERFE...

FRS authorized financial capital maintenance in units of constant purchasing power in the original Framework (1989), Par. 104 (a) which me...

According to The Economist the merits of inflation as a solution to the rich world’s problems are easily overstated. Inflation is always a...

Accorging to The Economist Alan Greenspan and Ben Bernanke still do not believe monetary policy bears any blame for the crisis. Part of th...

No-one will disagree that 5.7% annual inflation and not SA accountants destroy the real value of the Rand and other monetary items in the SA...

Statistics SA announces that the annual inflation rate came down to 5.7% Gill Marcus reduces interest rates by half a per cent. SA accou...

A company’s capital is synonymous with its Net Assets or Shareholders Equity under a financial concept of capital such as invested money or ...

Deflation is a sustained absolute decrease in the general price level resulting in a sustained increase in the real value of the functional ...

One who asks a question is a fool for five minutes; one who does not ask a question remains a fool forever. Chinese Proverb The Framework...