Under this IFRS and US GAAP authorized system, financial capital maintenance is always measured in units of constant purchasing power (CPP) in terms of a Daily CPI (consumer price index) during low inflation, high inflation, hyperinflation and deflation; i.e., during all possible economic environments.
In the IASB's original Framework (1989), Par 104 (a), CPPA was authorized as an alternative to the traditional HCA model at all levels of inflation and deflation, including during hyperinflation as required in IAS 29.
Income statement constant items like salaries, wages, rents, pensions, utilities, transport fees, etc.
The calculation and accounting of net monetary losses and gains during low inflation and deflation have thus been authorized in IFRS since 1989.
Financial capital maintenance in nominal monetary units or Historical cost accounting (see the Framework (1989), Par 104 (a)).