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Date: 2019-03-26 Page is: DBtxt001.php L0700-TVM-ACTIVITY-CHANGE-IN-STATE


TRUE VALUE METRICS
ACTIVITY / CHANGE IN STATE

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

ACTIVITY RESULTS IN CHANGE IN STATE
THE STATE OF ALL THE CAPITALS IS CHANGED
The activities / operations / processes of the company (reporting entity) have impact on ALL the CAPITALS
The financial balance sheet of the company (reporting entity) are changed by the financial transactions of the company as reported in the P&L account.

These changes are reported in the company balance sheet. In conventional financial accounting there is only accounting for the financial transactions and the financial dimension of the company balance sheet.
The next slide reflects:
… how the money P&L report describes the impact of the money transactions on the money balance sheet of the operation … while ignoring IMPACTS of the operations because
(1) they are not money transactions and
(2) 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:



The text being discussed is available at


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.
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