Monday 10 December 2012

MISSION

Our mission is, amongst other sustainable economic development objectives, to assist especially under-developed, developing and emerging market economies experiencing high inflation or hyperinflation to immediately stop


(1) the very erosive effect of such high inflation or hyperinflation in their monetary economies, as well as

(2) the equally erosive effect of the stable measuring unit assumption in their constant real value non-monetary item (constant item) economies

by means of the implementation of capital maintenance in units of constant purchasing power as authorised in IFRS twenty three years ago.


This would stabilise a country´s entire economy which would increase the level of sustainable economic development for an indefinite period of time in all entities that at least break even in real value – all else being equal.


Daily Index Plan


Our activities can take various forms, especially technical assistance to these countries´ National Accounting Standards Authorities to immediately adopt capital maintenance in units of constant purchasing power as authorised in International Financial Reporting Standards (IFRS) in 1989.

This entails the implementation of the Daily Index Plan which consists of the following two parts:


(a) Capital maintenance in units of constant purchasing power as authorised in IFRS in terms of a Daily Consumer Price Index (Daily CPI) in high inflation economies and the daily US Dollar free-market exchange rate in hyperinflationary economies.


(b) Daily inflation-indexing of the entire money supply under complete co-ordination.


The Daily Index Plan is based on the very successful 1994 Brazilian Real Plan with the accounting part authorised in IFRS in 1989. It is guaranteed to remove


(i) the very erosive effect of high inflation and hyperinflation from the monetary economy, as well as


(ii) the equally erosive effect of the stable measuring unit assumption from the constant item economy when the plan is implemented correctly.

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