Hyperinflation example comparing IAS 29 and Capital Maintenance in Units of Constant Purchasing Power.
As presented to the IASB on 8 January 2013.
Nicolaas Smith
Copyright (c) 2005-2012 Nicolaas J Smith. All rights reserved. No reproduction without permission.
CMUCPP automatically maintains the real value of capital constant indefinitely with financial capital maintenance in units of constant purchasing power originally approved in IFRS in the Framework (1989) Par 104 (a) in terms of a Daily CPI in entities that break even in real value at all levels of inflation and deflation - ceteris paribus. This would stop the erosion by the stable measuring unit assumption (not inflation) of hundreds of billions of USD p.a. in the world´s capital investment base
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