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Date: 2019-09-16 Page is: DBtxt001.php L0700-TPB-c2003-Process-Changing-State-2
TPB thinking circa 2003
ACCOUNTING FOR PROCESS

PROGRESS is the increase in VALUE (of the STATE) from beginning to end of the period
Simply measure the change in the VALUE or everything

CONVENTIONAL ACCOUNTING IS VERY POWERFUL
Starting with the Profit and Loss Account
... and more so when combined with the Balance Sheets at the beginning and the end of the period
HOWEVER ... conventional financial accounts ONLY describe economic activity in financial or money terms while completely ignoring impact on everything else ... that is the 'externalities' ... that is the impacts on SOCIETY and the impacts on the ENVIRONMENT, the other dimensions of the complete SOCIO-ENVIRO-ECONOMIC SYSTEM.
More ... c2003-Process-Changing-State - 1
Open L0700-TPB-c2003-Process-Changing-State-1

APPLYING THE TVM FRAMEWORK
BUILDING ON HOW CONSOLIDATION ACCOUNTING WORKS

The next slide shows …

… how the money P&L report describes the impact of the money transactions on the money balance sheet of the operation …

… while the IMPACTS of the operations on society and the environment are ignored because they are outside the reporting envelope.
A better framework for reporting would be this …
So think of all this miniaturized:

NEW SECTION
Sub heading
So think of all this miniaturized:

PROGRESS is the increase in VALUE (of the STATE) from beginning to end of the period
Simply measure the change in the VALUE or everything


The text being discussed is available at

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TrueValueMetrics (TVM) is an Open Source / Open Knowledge initiative. It has been funded by family and friends plus donations from well wishers who understand the importance of accountability and getting the management metrics right. TVM is a 'big idea' that has the potential to be a game changer leveling the playing field so the wealth and power is shared on a more reasonable basis between people who work for a living and those that own the economy and the levers of power. In order to be effective, it cannot be funded in the conventional way with a for profit business plan, but absolutely must remain an open access initiative.
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