image missing Date: 2021-10-17 Page is: DBtxt003.php L0900-QN-quantification-01a


QUANTIFICATION / NUMBERING
SVPs
Quantification using Standard Value Profiles (SVPs)
Link ... L0700-SN-06-FLOW-ACTORS More L07-06-SEES-FLOW-ACTORS
Money has its uses, but it is a very poor unit of measure for almost everything that is important in the world we live in. The size of a money unit has no definition at all … it is determined by a market that is also impossible to describe and replete with 'invisible hands' that may or may not control anything or everything.

Standard values are something like standard costs in cost accounting.

TVM uses multiple units of account and standard value profiles for numbering the system using many of the concepts of conventional financial accounting.

TVM is also an accounting framework that numbers all the elements in a coherent way as they flow through the system and impact all the capitals.

The Standard Value Profile (SVP) is similar to the financial accounts of a corporate business in the sense that part of the profile numbers the way in which the past has contributed to the entity just as a balance sheet captures in part what has bappened to a company upt to a point in time.

Also the SVP is a bit like the calclation that financial analysts do when they compute the net present value of the future profits. In the case of the SVP, it reflects the net present value of the good that will arise through use of the entities in the future as well as the other impacts that there will be.

SVP embraces the TVM idea that all the capitals must be taken into consideration and all the impacts ... not just the financial capital and the money dimension of the transactions.



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