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Date: 2023-11-30 Page is: DBtxt003.php L020-CC-CORE-CONCEPTS
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CORE CONCEPTS
FROM ENGINEERING, ECONOMICS AND ACCOUNTANCY
HOME L07-01 L07-02 L07-03 L07-04 L07-07 L07-05 L07-04??zz L07-06 L07-07??
ABOUT TRUEVALUEMETRICS (TVM) Go TOP
TVM -v- CONVENTIONAL FINANCIAL ACCOUNTANCY (CFA)
TVM IS LIKE CFA BUT FULLY INCLUDES SOCIAL AND ENVIRONMENTAL DIMENSIONS
Open L0700-TVM-comparison-with-CFA
ACCOUNTING PRINCIPLES -v- RULES Go TOP
THE PRINCIPLES OF ACCOUNTANCY ARE VERY OLD AND VERY POWERFUL.
MODERN RULES HAVE CONSTRAINED PROGRESS TOWARDS A BETTER SYSTEM
Open L0700-CC-Accounting-Principles-v-Rules
AUDIT Go TOP
AUDIT WAS MANDATED FOR PUBLIC COMPANIES TO STOP THE PRACTICE OF BLATANTLY LYING TO INVESTORS Open L0300-Audit
Open L0700-CC-AUDIT
BALANCE SHEET Go TOP
THE STATE OF THE REPORTING ENTITY ... ASSETS, LIABILITIES, OWNER'S EQUITY
PROGRESS IS A BETTER BALANCE SHEET OVER TIME
Open L0700-CC-BALANCE-SHEET
CAPITALS Go TOP
CAPITALS
FOR MOST OF HISTORY FINANCIAL CAPITAL HAS BEEN CENTRAL
INCREASINGLY SOCIAL AND NATURAL CAPITAL ARE GETTING ATTENTION
Open L0700-CC-CAPITALS
CONTINUOUS PERFORMANCE IMPROVEMENT (CPI) Go TOP
CONTINUOUS PERFORMANCE IMPROVEMENT
A COMMON SENSE IDEA BEING FORMALIZED
Open L0700-CC-CONTINUOUS-IMPROVEMENT
COST ACCOUNTING Go TOP
COST ACCOUNTING
MANAGEMENT TOOL THAT LINKS ENGINEERING AND DESIGN TO PERFORMANCE
Open L0700-MT-COST-ACCOUNTING
CORE CONCEPTS Go TOP
CORE CONCEPTS
THE CORE CONCEPTS OF FINANCIAL ACCOUNTING ARE VERY POWERFUL
THEY NEED REFRESHING TO BE RELEVANT IN THE 21ST CENTURY
Open L070-CC-CORE-CONCEPTS
COST, PRICE AND VALUE Go TOP
COST, PRICE & VALUE
ACCOUNTING FOR COST AND PRICE GIVES A RESULT CALLED PROFIT
THERE IS NOTHING IN CONVENTIONAL ACCOUNTING FOR VALUE
Open L0700-CC-Cost-Price-Value
CREDITS and DEBITS of VALUE Go TOP
CREDITS-and-DEBITS-of-VALUE
MOST MONEY TRANSACTIONS ARE EASILY UNDERSTOOD TO HAVE VALUE
VALUE ASSOCIATED WITH SOCIAL AND NATURAL CAPITAL ARE ALSO IMPORTANT
Open L0700-CD-CREDITS-and-DEBITS-of-VALUE
DATA AT THE CENTER Go TOP
DATA AT THE CENTER
EVERYTHING SHOULD BE NUMBERED TO UNDERSTAND CONNECTIONS
BALANCE SHEETS ARE A LOGICAL WAY TO FACILITATE UNDERSTANDING
Open L0700-CC-DATA-AT-THE-CENTER
DEFINITIONS / BASIC PRINCIPLES Go TOP
DEFINITIONS / BASIC PRINCIPLES
NAVIGATION TO MORE THAN 100 DEFINITITIONS / PRINCIPLES
Open L0200-DEFINITIONS-for-TVM
DOUBLE ENTRY Go TOP
DOUBLE ENTRY
THIS CONCEPT IS THE BASIS FOR THE ENORMOUS POWER OF ACCOUNTANCY
IT SHOULD BE APPLIED TO SOCIAL AND ENVIRONMENTAL VALUES AS WELL
Open L0700-CC-DOUBLE-ENTRY
ENHANCING ACCOUNTANCY Go TOP
ENHANCING ACCOUNTANCY
TO BRING THE POWER OF ACCOUNTANCY TO IMPACT ON ALL THE CAPITALS
Open L0700-CC-ENHANCING-ACCOUNTANCY
FEEDBACK Go TOP
FEEDBACK
RAPID RELEVANT FEEDBACK ENABLES PERFORMANCE IMPROVEMENT
Open L0700-CC-FEEDBACK
FEEDBACK & DATAFLOW
DATAFLOW DESIGN ENHANCES THE IMPACT DELIVEblack BY FEEDBACK
Open L0700-CC-FEEDBACK-DATAFLOW
FINANCIALIZATION Go TOP
FINANCIALIZATION
A SINGULAR FOCUS ON FINANCIAL PERFORMANCE ... GROWING PROFIT AND WEALTH
Open L0700-FINANCIALIZATION
FLOW, PROCESS and CHANGE IN STATE Go TOP
FLOW, PROCESS & CHANGE in STATE
EVERY ACTIVITY HAS AN IMPACT ON ALL THE STATES, NOT JUST ONE
Open L0700-TVM-s-FLOW-PROCESS-CHANGEinSTATE
TVM-s-FLOW-PROCESS-CHANGEinSTATE-170529
AN OLDER VERSION OF THE PAGE
Open L0700-TVM-s-FLOW-PROCESS-CHANGEinSTATE-170529
KEY PERFORMANCE INDICATOR (KPI) Go TOP
KEY PERFORMANCE INDICATOR (KPI)
A STREAMLINED WAY OF COMMUNICATING PERFORMANCE
Open L0700-CC-KPI
MANAGEMENT ACCOUNTING Go TOP
MANAGEMENT ACCOUNTING
THE USE OF ACCOUNTING IN SUPPORT OF MANAGEMENT DECISIONS
BUT INEFFECTIVE FOR SOCIAL AND ENVIRONMENTAL IMPACT MANAGEMENT
Open L070-MA-MANAGEMENT
Open L0700-MA-COST-MNGT-ACCOUNTING
Open L0700-MT-MNGT-ACCOUNTING
MATERIALITY Go TOP
MATERIALITY
ISSUES THAT HAVE A BIG IMPACT ON PERFORMANCE
Open L0700-CC-MATERIALITY
MONEY ACCOUNTING & VALUE ACCOUNTING Go TOP
MONEY ACCOUNTING & VALUE ACCOUNTING
AN IMPORTANT ENHANCEMENT OF ACCOUNTING THAT INCORPORATES VALUE
Open L0700-CC-MONEY-ACTG-TO-VALUE-ACTG
PERFORMANCE Go TOP
PERFORMANCE
HOW MUCH IS ACHIEVED RELATIVE TO THE NET RESOURCES CONSUMED
NOT WELL DEFINED FOR SOCIAL AND ENVIRONMENTAL PERFORMANCE
Open L0700-CC-PERFORMANCE
PERSPECTIVE Go TOP
PERSPECTIVES
RECOGNIZING THAT ACTIVITY LOOKS DIFFERENT DEPENDING ON POINT OF VIEW
Open L0700-CC-PERSPECTIVES
PRESENT VALUE Go TOP
PRESENT-VALUE
A WAY FOR THE FUTURE TO BE NUMBEblack IN A COHERENT WAY
Open L0700-CC-PRESENT-VALUE
PROCESSES Go TOP
PROCESSES
PROCESSES CHANGE RAW MATERIALS AND LABOR INTO USEFUL PRODUCTS
MANY MODERN PROCESSES HAVE BECOME VERY POWERFUL AND PRODUCTIVE
Open L0700-CC-PROCESSES
Open L0700-CPC-PROCESSES
Open L0700-RE-PROCESSES
PRODUCTS Go TOP
PRODUCTS
PRODUCTS HELP DELIVER QUALITY OF LIFE FOR FOR CONSUMERS
BUT PRODUCTS ARE DESIGNED MAINLY TO MAXIMISE PROFITS FOR PRODUCERS
Open L070-PD-PRODUCTS
Open L0700-CPC-PRODUCTS
Open L0700-RE-PRODUCTS
PROFIT AND LOSS ACCOUNT Go TOP
PROFIT & LOSS ACCOUNT
AN ACCOUNTING SUMMARY OF THE MONEY ACTIVITIES OF THE ENTITY
THE EQUIVALENT ARE NEEDED FOR IMPACT ON SOCIETY AND THE ENVIRONMENT
Open L0700-CC-PROFIT-AND-LOSS-ACCOUNT
PROGRESS Go TOP
PROGRESS
THE EASIEST MANAGEMENT METRIC FOR PROGRESS IS CHANGE IN STATE
THIS SHOULD BE DONE FOR SOCIAL, ENVIRONMENTAL AND ECONOMIC CAPITALS
Open L0700-CC-PROGRESS
PROGRESS AND PERFORMANCE Go TOP
PROGRESS & PERFORMANCE
THE ESSENTIAL MEASURES FOR ASSESSING ACTIVITIES
Open L0700-CC-PROGRESS-PERFORMANCE
PURHASING POWER PARITY (PPP) Go TOP
PURCHASING POWER PARITY (PPP)
A WAY TO BRING COMPARABILITY TO DIFFERENT ECONOMIC SETTINGS
Open L0700-CC-PPP
QUANTIFICATION Go TOP
QUANTIFICATION
ESSENTIAL FOR EFFECTIVE MEASUREMENT AND MANANGEMENT
Open L0700-CC-QUANTIFICATION
QUANTITATIVE EASING Go TOP
QUANTITATIVE EASING
MONETARY POLICY TOOL AVAILABLE TO THE US FEDERAL RESERVE
Open L0700-CC-QUANTITATIVE-EASING
REPORTING ENTITY Go TOP
REPORTING ENTITY
MOST CORPORATE REPORTING IS CONSTRAINED BY THE REPORTING ENVELOPE WHICH SYSTEMATICALLY EXCLUDES SOCIAL AND ENVIRONMENTAL FACTORS
Open L070-RE-REPORTING-ENTITIES
Open L0700-CC-REPORTING-ENTITY
RESPONSIBILITY ACCOUNTING Go TOP
RESPONSIBILITY ACCOUNTING
WITH THIS APPROACH A 'PERSON' BECOMES IDENTIFIED WITH PERFORMANCE
THIS TECHNIQUE IS VERY POWERFUL AND VERY UNPOPULAR
Open L0700-CC-///
RETURN ON ASSETS EMPLOYED Go TOP
RETURN ON ASSETS EMPLOYED
RARELY USED BUT A GOOD WAY BETTER TO UNDERSTAND PRODUCTIVITY
STRIPS AWAY MOST OF THE GAMING OF RETURN ON INVESTMENT REPORTING
Open L0700-CC-//
RETURN ON INVESTMENT (ROI) Go TOP
RETURN ON INVESTMENT (ROI)
A WIDELY USED METHOD OF COMPARING BUSINESS PERFORMANCE
VARIOUS TRICKS ARE USED TO IMPROVE ROI THAT HIDE THE TECHNICAL REALITY
Open L0700-CC-//
SHADOW PRICING Go TOP
SHADOW PRICING
ENABLES ACCOUNTABILITY FOR MATTERS NOT USUALLY ACCOUNTED FOR
Open L0700-CC-Shadow-Pricing
STANDARD-COST-ACCOUNTING Go TOP
STANDARD COST ACCOUNTING
A SIMPLIFICATION OF COST ACCOUNTING THAT ALSO MAKES IT MORE USEFUL
Open L0700-MA-STANDARD-COST-ACCOUNTING
STANDARD VALUE PROFILE Go TOP
STANDARD VALUE PROFILE
ENHANCEMENT OF STANDARD COST FOR ALL DIMENSIONS OF THE SYSTEM
Open L0700-SV-STANDARD-VALUE-PROFILE
UNITS OF ACCOUNT Go TOP
UNITS OF ACCOUNT
MONEY WORKS AS A METRIC FOR THE ECONOMY. BUT NOT FOR SOCIETY AND THE ENVIRONMENT (NATURE)
Open L070-UA-UNITS-OF-ACCOUNT
Open L0700-CC-UNITS-OF-ACCOUNT
VALUE ADD Go TOP
VALUE ADD
PROFIT IS THE VALUE ADD FOR THE ECONOMIC DIMENSION
THERE IS SOCIAL VALUE ADD AND ENVIRONMENTAL VALUE ADD AS WELL
Open
VARIANCE ANALYSIS Go TOP
VARIANCE ANALYSIS
THIS IS A VERY POWERFUL MANAGEMENT TOOL
ESSENTIALLY IT COMPARES ACTUAL PERFORMANCE WITH A BUDGET OR PLAN
Open
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MISC / TEMP Go TOP
Text, images, links that have been removed
This material will be edited and moved to better location or deleted
Open L0700-PL-000-TEMP-STUFF-180719
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Copyright © 2005-2021 Peter Burgess. All rights reserved. This material may only be used for limited low profit purposes: e.g. socio-enviro-economic performance analysis, education and training.