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

SA accountants, implementing traditional 700-year-old Historical Cost Accounting, unknowingly, unnecessarily and unintentionally destroy the...

1. "Inflation erodes companies´ invested capital and profits" - as per the FASB. The FASB is the US Financial Accounting Standa...

INFLATION MYTHS 1. "Inflation erodes companies´ invested capital and profits" - as per the FASB. Inflation is always and every...

Inflation myths 1.Inflation erodes companies´ invested capital and profits. Inflation is always and everywhere a monetary phenomenon – M...

Valuing monetary items during deflation Accountants value and account monetary items correctly at their original nominal monetary HC value...

Comment on IFRS in Perspective blog on AccountingWeb.com Mr Pounder, I agree with you that a common Conceptual Framework is essential. ...

Comment to IFRS in Perspective blog on AccountingWeb.com Mr Pounder, Financial standards are really the same as universal units of meas...

Comment to AccountingWeb.Com blog . Mr Pounder, You state in your first post: "In each of my posts, I’ll tell you something about...

Measurement of Monetary Items in the Financial Statements Measurement is the process of determining the monetary amounts at which monetary...

Inflation destroys the assumption that money is stable which is the basis of classic accountancy. In such circumstances, historical values r...

Money is a depreciating store of value during inflation and an appreciating store of value during deflation. Money has to maintain most of...

Money performs the following three functions: 1.Medium of exchange 2.Store of value 3.Unit of account 1. Medium of Exchange Money...

The significant destruction of the real value of SA companies´ and banks´ retained profits never maintained constant, unknowingly done by SA...

There is no CPI in a barter economy as there is no money in such an economy. The CPI is essential to update or index or inflation-adjust the...

We use the change in the CPI as a measure to calculate the destruction of real value in monetary items (which cannot be indexed) and constan...

“The consumer price index was first used in 1707. In 1925 it became institutionalized when the Second International Conference of Labour Sta...

Hi, Who said that? Not me. "Willem Buiter, a former professor at the London School of Economics who is now the chief economist of ...

Our money today has no intrinsic value in itself. It is fiat money that is created by government fiat or decree. The government declares fia...

The FASB defines capital maintenance in its Concepts Statement No 5, Paragraphs 45 to 48. According to the FASB there are only two concept...

Real value is the most important fundamental economic concept although it is the lesser studied and understood compared to the study of mone...