Date: 2025-08-21 Page is: DBtxt003.php txt00004754
Money profit accounting is a powerful management tool, and used in every successful company. Up to now there has been no equally powerful management tool to address the performance of the economy with respect to impact on People, Place and Planet, the impact on society ... sometimes loosely referred to as the 'externalities'.
TrueValueMetrics (TVM) is an emerging accounting framework that combines accounting for money flows with accounting for value flows. The concepts used in TVM are those of accounting. The goal is to provide a way to account for and report not only the profit performance of the organization and its balance sheet, but to account for and report on the 'valuadd' that the organization has contributed to society and the impact this has on the balance sheet of society.
In the corporate organization, every single money transactions is recorded, accounted for and reported, using almost universally accepted global standards. TVM treats value flows in a simlar manner. The TVM approach has a lot in common with traditional cost accounting ... especially standard costing. Every economic activity should be described based on the related money flows together with the value flows.
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Building a database of standard values, and the analysis of some core activities and the associated value chains to show impact on society ... on People, Profit and Planet ... is a start.