9:22 PM
peterbnyc@gmail.com
www.truevaluemetrics.org
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Product:
A Very Critical Lin...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Accountants are sometimes degoratorily referred to
as 'bean counters'. Th...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
The three segments of the MDIA analysis framework are:
C:TVMwebsiteWebsit...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
The three segments of the MDIA analysis framework
are PEOPLE, PEOPLE BUIL...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
The three segments of the MDIA analysis framework
are PEOPLE, PEOPLE BUIL...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
MDIA uses the conventional accounting construct:
● State at the beginning...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
MDIA uses the conventional accounting construct:
● State at the beginning...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
The money cost of raw materials and energy are
included in the accounts b...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Raw material;
Virgin raw materials;
Energy;
Worker remuneration;
Payroll ...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Raw material;
Virgin raw materials;
Energy;
Worker remuneration;
Payroll ...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-...
9:22 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
May 2014
QUESTIONS? FEEDBACK?
peterbnyc@gmail.com
www.truevaluemetrics.or...
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PRODUCT ... a very critical link (140517)

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The basic MDIA analysis framework has three segments: People; People Built Constructs; and, Nature's Bounty. The critical link between these segments is product. Decisions made about product determine how everything works and the impact on profit, people, and planet.

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PRODUCT ... a very critical link (140517)

  1. 1. 9:22 PM peterbnyc@gmail.com www.truevaluemetrics.org MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Product: A Very Critical Link @truevaluemetric
  2. 2. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Accountants are sometimes degoratorily referred to as 'bean counters'. This works when accountants are doing 'conventional' money profit accounting. For the 21st century … we need something like MDIA so that there is rigorous accounting for impact on people and planet as well as just the profit. The 'bean counter' descriptor does not work. Simply 'adding up the money' is not sufficient to describe the performance of an organization in a useful and responsible way. MDIA analysis is more like the 'counting of spaghetti' … and even that is gross simplification. Product is the link between almost everything in modern society, in the modern global economy and in the impact of everything on resources and the environment. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: A Very Critical Link
  3. 3. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) The three segments of the MDIA analysis framework are: C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp People (society) Nature's bounty People built constructs The MDIA Framework for Measurement
  4. 4. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) The three segments of the MDIA analysis framework are PEOPLE, PEOPLE BUILT CONSTRUCTS and NATURE'S BOUNTY. We measure corporate performance and profit with great rigor. We use GDP growth as an indicator of economic performance. We have assumed for 70 years that these metrics are also indicators of the state of people and planet … but this is wrong. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Life Cycle Analysis
  5. 5. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) The three segments of the MDIA analysis framework are PEOPLE, PEOPLE BUILT CONSTRUCTS and NATURE'S BOUNTY. We measure corporate performance and profit with great rigor. We use GDP growth as an indicator of economic performance. We have assumed for 70 years that these metrics are also indicators of the state of people and planet … but this is wrong. Life Cycle Analysis of products is a very critical link between everything: … between the three segments referred to above … producing impact on quality of life … producing impact on resources … producing impact on environmental degradation Decisions are made to buy or not to buy products … in turn thus means decisions have to be made to make or not to make products. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Life Cycle Analysis
  6. 6. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Life Cycle Analysis Beauty products http://pgbeautyscience.com/breakthroughs-xix.php
  7. 7. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Life Cycle Analysis http://newscenter.lbl.gov/feature-stories/2008/04/18/life-cycle-analysis/ Impact: Resource Use / Environmental Degradation
  8. 8. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Life Cycle Analysis http://www.newhaven.edu/sustainability/carbon-footprint-report/ Impact: Resource Use / Environmental Degradation
  9. 9. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Life Cycle Analysis Paper and print http://www.tappi.org/content/enewsletters/ahead/2011/issues/2011-04-13.html
  10. 10. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) MDIA uses the conventional accounting construct: ● State at the beginning of the period (BoP) ● PLUS: Activities for the period ● BECOMES: State at the end of the period (EoP) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: TruCost / TruValue
  11. 11. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) MDIA uses the conventional accounting construct: ● State at the beginning of the period (BoP) ● PLUS: Activities for the period ● BECOMES: State at the end of the period (EoP) The images representing life cycle analysis are circular and difficult to convert into this construct. Probably more than anything else, this is what MDIA does to make MDIA analysis easy to use and easy to understand. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: TruCost / TruValue
  12. 12. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) The money cost of raw materials and energy are included in the accounts based on transactions prices to buy the materials. Beyond this cost, there are other cost / value elements that should also be brought into account. The SUPPLY CHAIN for the product frequently has a bigger impact on the true socio-economic performance than the manufacturing / assembly of the product. The USE of the product also may have a big impact on the trucost / truvalue of the product. Lastly, the POST USE WASTE CYCLE has an impact on the trucost / truvalue of the product. C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: TruCost / TruValue
  13. 13. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Raw material; Virgin raw materials; Energy; Worker remuneration; Payroll benefits; Cost of capital equipment; Cost of money capital; Cost of working capital; Taxes; Pro-good expenditures; Profit. Price / Sales revenue C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Elements of TruValue From previous supply chain RESOURCE DEPLETION ENERGY SUPPLY CHAIN IMPACT PEOPLE BENEFIT PEOPLE BENEFIT Economic life based depreciation Benefit to investors Interest → Benefit to investors Benefit to Government → Society Benefit to Society Profit → Benefit to investors Benefits in the product Adjusted TruValue
  14. 14. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) Raw material; Virgin raw materials; Energy; Worker remuneration; Payroll benefits; Cost of capital equipment; Cost of money capital; Cost of working capital; Taxes; Pro-good expenditures; Profit. Price / Sales revenue C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Elements of TruValue From previous supply chain RESOURCE DEPLETION ENERGY SUPPLY CHAIN IMPACT PEOPLE BENEFIT PEOPLE BENEFIT Economic life based depreciation Benefit to investors Interest → Benefit to investors Benefit to Government → Society Benefit to Society Profit → Benefit to investors Benefits in the product Adjusted TruValue ALL OF THESE ELEMENTS OF COST / VALUE MUST BE EXPLODED INTO THE 'TRUCOST/TRUVALUE' ACCOUNTING AS THE PRODUCT MOVES THROUGH THE SUPPLY CHAIN.
  15. 15. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Decision 'To Buy' or 'Not-to-Buy' ALL OF THESE ELEMENTS OF COST / VALUE MUST BE EXPLODED INTO THE 'TRUCOST/TRUVALUE' ACCOUNTING AS THE PRODUCT MOVES THROUGH THE SUPPLY CHAIN. ALL OF THESE ELEMENTS OF COST / VALUE MUST BE EASILY ACCESSIBLE TO EVERYONE ENGAGED IN ANY 'BUY' OR 'NOT TO BUY' DECISIONS.
  16. 16. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp PRODUCT: Decision 'To Buy' or 'Not-to-Buy' ALL OF THESE ELEMENTS OF COST / VALUE MUST BE EXPLODED INTO THE 'TRUCOST/TRUVALUE' ACCOUNTING AS THE PRODUCT MOVES THROUGH THE SUPPLY CHAIN. ALL OF THESE ELEMENTS OF COST / VALUE MUST BE EASILY ACCESSIBLE TO EVERYONE ENGAGED IN ANY 'BUY' OR 'NOT TO BUY' DECISIONS. The modern world is driven by advertising and promotion with the singular purpose of selling product and making business profit. Advertising and promotion has been made even more effective by modern technology. It is high time the same amount of effort was put into guiding people into making better decisions for themselves and the planet we all have to live on. .
  17. 17. 9:22 PM MULTI DIMENSION IMPACT ACCOUNTING (MDIA) May 2014 QUESTIONS? FEEDBACK? peterbnyc@gmail.com www.truevaluemetrics.org @truevaluemetric C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Product-a-very-Critical-Link-140517.odp

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