TrueValueMetrics ... Impact Accounting for the 21st Century

Date: 2024-12-21 Page is: DBtxt003.php txt00003681

For more on this contact Peter Burgess ... peterbnyc@gmail.com Follow on Twitter @truevaluemetric http://www.truevaluemetrics.org TVM Value Accountancy ... State, Progress and Performance 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) Society should have accounting and reports that relate to: State, Progress and Performance as it affects the implementing organization; and State, Progress and Performance as it affects people and planet (or place). 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. 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.

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