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 in real value over time.   Money illusion is primarily evident in l...

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

The cost of the stable measuring unit assumption It is clearly known and admitted that there is real value being eroded in non-monetary it...

Both HC variable and HC constant items are considered to be simply HC non-monetary items under HCA. Non-monetary items under the HCA mode...

Three concepts of capital maintenance in IFRS There are not only two concepts of capital - as generally accepted and specifically stated ...

Abstract - Part 2 of 5 Three economic items It is generally accepted that there are only two basic, fundamentally different economic i...

Constant Item Purchasing Power Accounting – CIPPA The IFRS-authorized alternative to HCA which automatically stops the erosion of capital...

Constant Item Purchasing Power Accounting versus Historical Cost Accounting CIPPA equals perpetual automatic capital maintenance while HC...

Entities with net monetary item assets (weighted average of monetary item assets greater than weighted average of monetary item liabilities)...

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

Money makes the world go round Money is the greatest economic invention of all time. Money did not exist and was not discovered. Money wa...

Accountants have to calculate the net monetary loss or gain from holding net monetary item assets or net monetary item liabilities, respecti...

CIPPA increases a company’s net asset value A company’s capital is synonymous with its Net Assets or Shareholders Equity under a financia...

HCA is not an appropriate accounting policy Auditors state in the audit report that the directors´ responsibility for the financial state...

Nine requirements Audited annual financial statements provided by companies which prepare them using the traditional Historical Cost Acco...

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

Presently, inflation accounting describes a complete price-level inflation accounting model, namely the Constant Purchasing Power inflation ...

By doing listed companies´ accounts in terms of IFRS as required by the rules of most stock exchanges, boards of directors – advised by the ...

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 monetary un...