The objective of financial reporting / accounting
January 31, 2013 in Uncategorized
The objective of general purpose financial reporting / accounting is to legalise measurement bases binding on both parties in transactions / exchanges, e.g., a sale (contract), that results in automatic capital maintenance in units of constant purchasing power, i.e., that results in automatically maintaining the constant purchasing power of capital constant at all levels of inflation and deflation, including during hyperinflation, in all entities that at least break even in real value – ceteris paribus – for an indefinite period of time.
This objective is automatically achieved with IFRS-authorised Capital Maintenance in Units of Constant Purchasing Power in terms of a Daily Index.
Do not ask the IASB for guidance regarding IFRS-authorised CMCUPP. They do not understand it. Contact me for guidance at realvalueaccounting[at]yahoo.com.
Copyright (c) 2005-2013 Nicolaas J Smith. All rights reserved. No reproduction without permission.