True Value Accounting is based on CORE CONCEPTS from conventional money profit double entry accounting as well as from engineering thermodynamics, control theory and various scientific disciplines. Double entry accounting provides a powerful framework to account for impact on society (people) and environment (planet) as well as for the conventional money profit dimension of economics. When we start to number important things like quality of life and degradation of the environment as rigorously as we number everything that is in the money profit space, there will be significantly better performance and we will start to optimize for everything in the soci-enviro-economic system

1. File: TVA-p3-01-CORE-CONCEPTS-for-TVA-151102.odp Peter Burgess (c) All rights reserved
CORE CONCEPTS
for
TRUE VALUE ACCOUNTING
TRUE VALUE ACCOUNTING

2. CONTEXT
This slideset is a Work-in-Progress
and will be updated from time to time.
It is part of a series that aims to
describe the extremely complex
socio-enviro-economic system that
we live in, and how better metrics will
make this system work better.
TRUE VALUE ACCOUNTING

3. From Accountancy:
● Double Entry Accounting;
● State, Process and Flow;
● State, Progress and Performance;
● Cost, Price and Value;
● Quantification;
● Standard Value;
● Data at the Center;
● Feedback;
● Reporting Boundaries;
● Consolidation Rules.
MULTI DIMENSION IMPACT ACCOUNTING

4. Double Entry Accounting
● Double Entry Accounting is the core strength
of a good accounting system;
● Every money transaction impacts two
accounts; and the system as a whole is
always in balance;
● Enables analysis of State, Process and Flow
The next three slides show how ACTIVITY or
process and flow changes STATE
MULTI DIMENSION IMPACT ACCOUNTING

5. MULTI DIMENSION IMPACT ACCOUNTING
These 3 slides explain the concept of
STATE and FLOW …
or in accounting terms, the
BALANCE SHEET / PROFIT AND LOSS
relationship …

6. MULTI DIMENSION IMPACT ACCOUNTING
STEADY STATE

7. MULTI DIMENSION IMPACT ACCOUNTING
POSITIVE PROGRESS

8. MULTI DIMENSION IMPACT ACCOUNTING
DETERIORATION OF STATE

9. These reflect …
● Steady state;
● Positive progress; and
● Deterioration of state
MULTI DIMENSION IMPACT ACCOUNTING

10. No information about ACTIVITIES is needed in
order to measure PROGRESS
… only information about changes in STATE
MULTI DIMENSION IMPACT ACCOUNTING

11. Data at the Center
● Used to plan
● Used to organize
● Used to implement
● Used to monitor progress
● Used to monitor cost effectiveness
● Used to plan follow up next steps
MULTI DIMENSION IMPACT ACCOUNTING

12. MULTI DIMENSION IMPACT ACCOUNTING

13. State, Progress and Performance
● State is the Balance Sheet of the entity at a
moment in time;
● Progress may be measured by comparing
the Balance Sheet changes between the
beginning and the end of the period;
● Performance is a measurement that relates
the Progress to the resources consumed.
MULTI DIMENSION IMPACT ACCOUNTING

14. MULTI DIMENSION IMPACT ACCOUNTING
EFFICIENCY AND EFFECTIVENESS

15. Cost, Price and Value
● There should be clarity about what is cost and
what is price;
● A buy/sell transaction takes place at a price;
● The buy price becomes the buyer's cost;
● There is a lot of data about price, but
relatively little accessible data about cost;
● Value is a very important idea, but quantified
data about value is missing;
● Money cost, price and value ignore all about
impact on people and planet.
MULTI DIMENSION IMPACT ACCOUNTING

16. MULTI DIMENSION IMPACT ACCOUNTING

17. Quantification
Putting numbers on measurements is a
vital step in enabling management and
good decision making.
● Money is used to measure profit and much to do
with financial capital.
● A measure is needed for everything to do with
human life and quality of life … human capital
● Other measures are needed for :
● The Carbon Cycle;
● The Water Cycle;
● Land use (including ecosystem services);
● Various Nutrient Cycles.
MULTI DIMENSION IMPACT ACCOUNTING

18. The role of monetization
Monetization is fatally flawed as a method
for measurement.
An exchange transaction … a market …
gives a result based more than anything
else on supply and demand. It is a 'result'
and not a 'measure'.
MULTI DIMENSION IMPACT ACCOUNTING

19. Standard Value
Cost accounting is often based on a
framework of standard costs. Impact
accounting can be based on a similar
system of standards.
The standard is the norm. Variations from
the norm are identified and used to
prioritize action plans to improve
performance
MULTI DIMENSION IMPACT ACCOUNTING

20. Beyond the Reporting Entity
Most reporting is done by implementing
organizations about their own progress
and performance … usually with little or
no reference to impact beyond the
boundaries of the reporting entity.
This is completely inadequate, but is the
norm and has been for decades.
MULTI DIMENSION IMPACT ACCOUNTING

21. Ignoring Externalities
Conventional accounting enables the ignoring
of externalities.
If there is no money transaction there is
nothing … which is patently absurd …
MULTI DIMENSION IMPACT ACCOUNTING

22. … patently absurd ...
… in a world where natural resources are being
depleted and the environment degraded by
very large scale economic activities.
… in a world where there is a massive amount
of unemployment, much of it, educated youth.
MULTI DIMENSION IMPACT ACCOUNTING

23. The next slide shows:
Niger Delta oil pollution … this pollution from
oil industry activities has ruined the lives of
most of the indigenous people of the area,
wrecked the local fishing resources but at NO
COST to the oil companies which report high
profits and high stock price valuations.
Externalities MUST be brought into the
accounting.
MULTI DIMENSION IMPACT ACCOUNTING

24. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
PROCESS
OIL POLLUTION IN THE NIGER DELTA

25. The last slide showed pollution caused by the
oil and gas industry in the Niger Delta where
there was once a thriving artisanal fishery.
There is accounting for oil company profits.
There is no accounting for the catastrophic
disruption in the lives of thousands of
Nigerians (Human capital impact) nor the
damage to the ecosystem (Natural capital
impact).
MULTI DIMENSION IMPACT ACCOUNTING

26. The next slides show:
Amazing complexity …
● Global North/Global South/Community
● Big Organizations - National and
International / Small communities
● Elements of Society: National level
and community
MULTI DIMENSION IMPACT ACCOUNTING

27. MULTI DIMENSION IMPACT ACCOUNTING

28. MULTI DIMENSION IMPACT ACCOUNTING

29. MULTI DIMENSION IMPACT ACCOUNTING

30. Feedback
● Feedback is best when it is fast
and very focused on practical
actionable response
● In this example feedback happens
in the small community BEFORE
the data reaches city, state, national
and international big data systems
MULTI DIMENSION IMPACT ACCOUNTING

31. MULTI DIMENSION IMPACT ACCOUNTING

32. Malaria in the community
● Get data / facts about malaria in the community
● This becomes the STATE – BOP*
● PLAN malaria control interventions
● IMPLEMENT malaria control interventions
● Get data about costs
● Get data / facts about resulting malaria in
the community
● This becomes the resulting STATE EOP*
● Assess change from BOP to EOP
MULTI DIMENSION IMPACT ACCOUNTING
* BOP – EOP … Beginning and End of Period

33. MULTI DIMENSION IMPACT ACCOUNTING

34. Next 2 slides
● The first slide is a simplified representation of
the State – Flow – State idea for ALL elements
of the Socio-Enviro-Economic System
● The second slide shows what the conventional
money metrics measure … just a tiny part of
everything that matters.
MULTI DIMENSION IMPACT ACCOUNTING
* BOP – EOP … Beginning and End of Period

35. MULTI DIMENSION IMPACT ACCOUNTING
STATE - BOP STATE - EOPPERIOD ACTIVITES

36. MULTI DIMENSION IMPACT ACCOUNTING
STATE - BOP STATE - EOPPERIOD ACTIVITES

37. The makeup of:
● Human Capital;
● Financial Capital;
● Man Built Capital*; and
● Natural Capital
MULTI DIMENSION IMPACT ACCOUNTING
* Sometimes referred to as MBSS – Man Built Structures and Systems

38. MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF THE SYSTEM by SEGMENT
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial
Capital
Human
Capital
Man Built
Structures & Systems
Natural
Capital
MoneyFood Government Nature (life)
Sun
Nature (life)
Capital Market
Value
Water
Laws. Rules Nature (life)Land
Shelter
Infrastructure WaterClothes
Industry Nature (life)Air
Health
Mining Ecoservices
Education
EnergySkills
Waste
Recreation Retail
Culture
LogisticsReligion
Knowledge
Technology
Security
Energy
Mobility
Profit

39. STATE – FLOW (activities) – STATE
● Financial Capital;
● Human Capital;
● Man Built Capital*;
● Natural Capital;
● Sun
MULTI DIMENSION IMPACT ACCOUNTING
* Sometimes referred to as MBSS – Man Built Structures and Systems

40. MULTI DIMENSION IMPACT ACCOUNTING
Resource
Depletion
Environment
Degradation
Improves
QoL
Super Rich
Affluent
BoPyramid
Industrial
Mining
Energy
Government
Not-for-Profit
Paperwork
Banking
Water
Air
EcoServices
Habitat
Law
Minerals
Energy
Land
Improves
Environment
Maintains
Natural
Capital and
remediates
Produces
Products
Improves
QoL
Financial
Progress
Renewables
Waste
Creation
Super Rich
Affluent
BoPyramid
Industrial
Mining
Energy
Government
Not-for-Profit
Paperwork
Banking
Water
Air
EcoServices
Habitat
Law
Minerals
Energy
Land
Sun
STATE - BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
STATE - EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Compromises
Society
Activities
Bad Impact Good Impact

41. The next 4 slides
STATE BOP … ACTIVITY ACCOUNTING … STATE EOP
● Financial accounting:
● Financial accounting plus GOOD impacts;
● Financial accounting minus BAD impacts;
● Financial accounting with BOTH impacts.
MULTI DIMENSION IMPACT ACCOUNTING

42. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
Financial Accounts describe Economic Activity
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

43. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
ADD positive impact not accounted for
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
What value to society?
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

44. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
DEDUCT negative impact not accounted for
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
Negative
impact
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

45. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
ACCOUNTING FOR EVERYTHING
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
What value to society?
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
Negative
impact
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

46. The next slide shows how the
operations of a process:
(1) through the money P&L report impact on
the money balance sheet of the
operation;
and,
(2) through the IMPACT accounts report on
the impact the operation is having on
society and the environment.
MULTI DIMENSION IMPACT ACCOUNTING

47. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Accounts describe Financial Impact
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP
Impact Accounts reflect Externalities
Balance
Sheet
Changes
Impact on Institutions
Impact on People
Impact on Society
Impact on Physical
Impact on Knowledge
Impact on Resources
Impact on Environment
Impact on EcoSystem
Balance
Sheet
Changes
Balance
Sheet
Changes
Balance
Sheet
Changes

48. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Accounts describe Financial Impact
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP
Impact Accounts reflect Externalities
Balance
Sheet
Changes
Impact on Institutions
Impact on People
Impact on Society
Impact on Physical
Impact on Knowledge
Impact on Resources
Impact on Environment
Impact on EcoSystem
Balance
Sheet
Changes
Balance
Sheet
Changes
Balance
Sheet
Changes

49. The next series of slides ...
STATE BOP … ACTIVITY … STATE EOP
Shows how an individual optimizes his/her
performance relative to quality of life … but
at the same time is having a lot of impact on
everything else.
MULTI DIMENSION IMPACT ACCOUNTING

50. MULTI DIMENSION IMPACT ACCOUNTING
ACTIVITIES OF AN INDIVIDUAL
Input of
Human
Capital:
Time, Effort,
Skill, Ability,
Knowledge
Improves
Society
Improves
MBSS
Pro Good
Activities
Buy and Use
PRODUCTS
e.g. Food, Energy
Shelter, Transport
Pro Money
Activities
e.g. Paid Work
Non-Impact
Recreation
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Improves
QoL and
Human
Capital
WASTE
Liquid
Gases
Solids
Natural
Capital
Depleted
Maybe
improves
FC in HC
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
INPUTS ACTIVITIES BAD
Impact
State-EOPState-BOP
GOOD
Impact
Use of
MBSS
Use of
Natural
Capital
Use of Solar

51. MULTI DIMENSION IMPACT ACCOUNTING
Job-Money Work
Housing
Health
Time
Skills
Income
Recreation
Education
ProGood Work
Energy
PLUS opportunities
Improves
society
Food
Clothes
Resource
Depletion
Environmental
Degradation
BOP EOPThe Individual
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
PERSONAL
ASSETS
Energy
Health
Enjoyment
Skills
Experience
Family
Shelter
Friends
Money
Stuff
QUALITY
OF LIFE
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
PERSONAL
ASSETS
Energy
Health
Enjoyment
Skills
Experience
Family
Shelter
Friends
Money
Stuff
QUALITY
OF LIFE
PRODUCTS
use MBSS
PRODUCTS
Impact NC
PRODUCTS
Use
MBSS
PRODUCTS
improve QOL

52. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
MEWHAT
I BUY
WHERE
I WORK
WHERE
I LIVE
The supply chain for
PRODUCTS
HOW I USE
THINGS
The post use
waste chain
Decisions about what
I buy or don't buy are
of great importance!

53. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Use of Pesticides
Use of Land
The IMPACT of FOOD
Use of Water
Use of Fertilizers
Air Pollution
Use of Growth Hormones
and Antibiotics
Use of Energy
Use of Equipment
Use of Labor Inputs Money Price
Money Profit
Money Cost
True Value
Value Add
True Cost
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Good food
improves wellness
Wellness improves
quality of life
INPUTS ACTIVITIES BAD
Impact
GOOD
Impact

54. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Use of Land
The IMPACT of ENERGY
Use of Water
Use of Finite
Resources
Air Pollution
Use of Energy
Use of Equipment
Use of Labor Inputs
Money Price
Money Profit
Money Cost
True Value
Value Add
True Cost
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Good food
improves wellness
Wellness improves
quality of life
Undue influence
and corruption
Land and water
pollution
INPUTS ACTIVITIES BAD
Impact
GOOD
Impact

55. MULTI DIMENSION IMPACT ACCOUNTING
Sun
LAND USE
Sustainable agriculture
Water purification
About LAND USE
Wetlands
Intensive monoculture
Coastal mangrove
Urban infrastructure
Roads, Parking Lots
There is a limited amount of land
There are multiple possible uses
Money Profit
Land is a factor
in improving
human capital,
producing goods
and services,
locating MBSS,
and providing
very critical
ecosystem
services
Suburban sprawl
Housing
Tropical forest
Habitat
Industrial operations
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun

56. MULTI DIMENSION IMPACT ACCOUNTING
Sun
WATER USE
Food production
uses water
Beverage production
uses water
About WATER USE
Water is essential to LIFE
Nothing is more important
Household water
use essential
Industrial processes
use water
Rainfall and fresh
water are abundant
in some places
but not everywhere
Household waste
also pollutes
Waste water pollution
from processes
a critical issue
Important for
all processes to
treat water before
discharge
Water is abundant,
but most has too
much dissolved
salts to be potable
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun

57. MULTI DIMENSION IMPACT ACCOUNTING
Sun
EMISSIONS
SO2 … acid rain
CO2-Greenhouse Gas
About ATMOSPHERIC POLLUTION
Air pollution has many forms, all of which are
more or less detrimental to people and planet
Particulates
MH4-Methane-GHG
Some emissions
have a direct
impact on health
Nitrous oxides
Freon-ozone layer
damage
Some emissions
are greenhouse
gases that cause
global warming
The atmosphere is
not an infinite free
dump for undesirable
and toxic emissions
All emissions
have a cost
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun

58. MULTI DIMENSION IMPACT ACCOUNTING
MBSS
Man-Built
Structures
& Systems
Sun
Natural
Capital
FINANCIAL
ACCOUNTSHuman
Capital
MBSS
Man-Built
Structures
& Systems
Sun
Natural
Capital
Human
Capital
Economic Activity … Process Accounts
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
What value to society?
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
Negative
impact
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved

59. The next slides
STATE BOP … ACTIVITY … STATE EOP
How to apply the MDIA core concepts to the
supply chain:
● First thinking it terms of money profit
● Secondly adding in the impact on people,
society and the environment.
MULTI DIMENSION IMPACT ACCOUNTING

60. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
Economic Activity … Process Accounts
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun

61. MULTI DIMENSION IMPACT ACCOUNTING
MBSS
Natural
Capital
Human
Capital
PRODUCT … the SUPPLY CHAIN
IMPACT ACCOUNTING ADJUSTMENTS
Zero to start
Costs this stage
Profit this stage
Price this stage
FINANCIAL
ACCOUNTS
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
Cost =
Price stage 1
Costs Stage 2
Profit Stage 2
Impact
Stage 1
Impact
Stage 1
Impact
Stage 1
Cum Costs
Cum Profit
Price Stage 2
Impact
Stage 2
Impact
Stage 2
Impact
Stage 2
Cum
Impact
Cum
Impact
Cum
Impact
Cost =
Price stage 2
Costs Stage 3
Profit Stage 3
Cum Costs
Cum Profit
Price Stage 3
Impact
Stage 3
Impact
Stage 3
Impact
Stage 3
Cum
Impact
Cum
Impact
Cum
Impact
Financial
Dimension
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved

62. MULTI DIMENSION IMPACT ACCOUNTING
MBSS
Natural
Capital
Human
Capital
PLACE … Where people live and work … where impact can be seen
IMPACT ACCOUNTING ADJUSTMENTS
Zero to start
Costs this stage
Profit this stage
Price this stage
FINANCIAL
ACCOUNTS
Zero to start
Costs this stage
Profit this stage
Price Stage 1
FINANCIAL ACCOUNTS EACH STEP OF THE SUPPLY CHAIN
Impact
Stage 1
Impact
Stage 1
Impact
Stage 1
Financial
Dimension
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved

63. The next slide:
A graphic from the MIT PROMISE initiative
… and then how the same type of thinking
might be applied in the MDIA framework.
Like most analysis initiatives the MIT PROMISE looks at
performance from the perspective of the company and its
owners. Other stakeholders are ignored.
MULTI DIMENSION IMPACT ACCOUNTING

64. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved

65. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Structures
& Systems
Natural
Capital
Sun

66. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

67. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

68. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Product
Place
Supply Chain
Process
Organization
Enabling
environment
Society

69. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

70. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Small decisions by people make all the differenceBOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

71. MULTI DIMENSION IMPACT ACCOUNTING
Sun
External Resources Create Impact Value
Sun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

72. REMINDER
This slideset is A WORK-IN-PROGRESS. It will be
upgraded periodically. It is part of a series of more than
100 slidesets. Navigation to these is available here:
FEEDBACK is welcome. Please email to Peter Burgess …
peterbnyc@gmail.com … with a catchy phrase in the
subject line so that it gets attention, and please identify
the specific slideset(s) involved.
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=N1-Slidesets-p3
TRUE VALUE ACCOUNTING

73. THANK YOU
Some links and contact information:
Email Peter Burgess … peterbnyc@gmail.com
Peter Burgess LinkedIn profile
https://www.linkedin.com/in/peterburgess1
Link to TrueValueMetrics.org website
http://www.truevaluemetrics.org/
Link to navigation to other resources:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0100-MainNav#1
TRUE VALUE ACCOUNTING