For more on this contact Peter Burgess ... email@example.com
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TVM Value Accountancy ... State, Progress and Performance
Society should have accounting and reports that relate to:
- State is like a business balance sheet of all the values and deficits
- Progress is how much better the 'state' becomes over time ... the valuadd
- Performance is how much resources are depleted (value consumed) in order to have progress (valuadd)
TVM Value Accountancy builds on the strong coherent conceptual framework of double entry in money accounting, notably the idea that profit may be computed by aggregating transactions or by calculating the net change in balance sheet accounts.
- State, Progress and Performance as it affects the implementing organization; and
- State, Progress and Performance as it affects people and planet (or place).
The 'State' of a place ... whether it is the community or the planet ... at any point in time may be determined more easily than compiling information about all the transactions that gave this result. The 'State' of the place incorporates ideas like Quality of Life, hope and potential as well as the natural resources of the place, whether mineral, environmental, human or organizational.
Economic activity changes 'State'. In modern money profit metrics the results for the organization are accounted for and reported, but the valuadd that changes the 'State' of society is ignored. This is wrong, and this is what TVM Value Accountancy makes right.