Crime Against Humanity: the Holy GAAP, 17
IAS 38, Intangible assets. What does IAS 38 have to do with money? Well, since the purchasing power created out of nothing we are investigating is in the intangible form of scriptural money, we might consider being in the vicinity of the concept of intangible asset, and IAS 38 defines both “intangible asset” and “asset” in paragraph 8: “Definitions, 8. The following terms are used in this standard with the meanings specified: […] An intangible asset is an identifiable non−monetary asset without physical substance. […] An asset is a resource: (a) controlled by an entity as a result of past events; and (b) from which future economic benefits are expected to flow to the entity.” So let’s see its paragraph 2: “Scope, 2. This standard shall be applied in accounting for intangible assets, except: […] (b) financial assets, as defined in IAS 32 Financial instruments: presentation; […]” A third confirmation of IAS 39.
IFRS 9, Financial Instruments. What does IFRS 9 have to do with it? Thanks to how avidly supranational and national legislators have adopted the IAS/IFRS sight unseen, the International Accounting Standards Board’s word is law: so when they said the IFRS 9 superseded IAS 39, IFRS 9 superseded IAS 39. With legal force. So? No relevant change: some definitions, including those that concern us here, financial instrument, financial asset and financial liability, have been picked up from IAS 32, paragraph 11, and included in IFRS 9; even though there were some changes in them, their relevant parts for our investigation did not change. Paragraph 2: “2. Definitions and Scope, 2.1. Definitions, A financial instrument is any contract that gives rise to a financial asset of one entity, and a financial liability […] of another entity. […] A financial asset is defined as any asset that is: […] Cash, […] A contractual right […] To receive cash […]. A financial liability is defined as any liability that is: […] A contractual obligation […] To deliver cash.” So, this is all about IFRS 9.
