PHYSICAL CAPITAL is a component of MAN BUILT CAPITAL and an important factor in the prosperity enjoyed by many in the modern world. It is the lack of physical capital (infrastructure) that contributes to endemic poverty in much of the world caused not so much by a lack of technology but by the management dysfunction that constrains the modern socio-enviro-economic system.

1. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-04-22-PHYSICAL-CAPITAL-150630.odp Peter Burgess (c) All rights reserved
MDIA
PHYSICAL CAPITAL
PART OF MAN BUILT CAPITAL

2. MULTI DIMENSION IMPACT ACCOUNTING
WORK-IN-PROGRESS.
SLIDESET STILL IN DEVELOPMENT.
UPDATES WILL BE POSTED OVER
THE NEXT SEVERAL WEEKS

3. THE MDIA SLIDESET SERIES
This slideset is part of a series being prepared
to describe the concepts of TrueValueMetrics
and being used to develop better metrics for
the complex Socio-Enviro-Economic-System
that now exists in the 21st century
This link enables easy navigation to the other
slidesets in the series:
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets
MULTI DIMENSION IMPACT ACCOUNTING

4. PHYSICAL CAPITAL is part of
MAN BUILT CAPITAL (MBC)
MULTI DIMENSION IMPACT ACCOUNTING

5. Physical Capital comprises:
● Infrastructure;
● Factories;
● Production machinery and equipment;
● Transport vehicles (ships, aircraft, trucks,
railcars, etc.);
● Houses and apartments;
● Offices, hotels and commercial buildings;
● Computers, communications equipment.
MULTI DIMENSION IMPACT ACCOUNTING

6. OWNERSHIP
Physical capital that is owned by the private
sector has a very different dynamic than
physical capital that is not in private
ownership ...
MULTI DIMENSION IMPACT ACCOUNTING

7. Private sector investment in physical capital is
predicated on the earnings potential of the
investment … a search for profit and an
aversion to risk.
MULTI DIMENSION IMPACT ACCOUNTING

8. In contrast, public sector investment in
physical capital is driven by a broader view of
the value of physical capital in advancing both
economic and social goals.
MULTI DIMENSION IMPACT ACCOUNTING

9. Sadly, the system of metrics for policy and
management used in almost all public sector
organizations including governments is one
that fails to differentiate adequately between
expenditure on capital items and expenditure
on current operations. This has many
important repercussions ...
MULTI DIMENSION IMPACT ACCOUNTING

10. The purchase cost of a physical capital asset
is a capital expenditure. In full accrual
accounting this expenditure is 'capitalized' and
written off over the lifetime of the asset. This is
the periodic depreciation.
The operational costs, repairs and
maintenance are operational costs that are a
charge for the period.
MULTI DIMENSION IMPACT ACCOUNTING

11. The way governments tend to work, a
purchase of a physical capital asset is subject
to significant analysis … and then the capital
asset is subsequently underfunded during its
life so that there is inadequate maintenance
and excessive deterioration.
MULTI DIMENSION IMPACT ACCOUNTING

12. INFRASTRUCTURE
MULTI DIMENSION IMPACT ACCOUNTING

13. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPHIGHWAYS IN USA (SEATTLE)

14. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPHIGH SPEED RAIL TRACK (JAPAN)

15. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCONTAINER PORT (New York / New Jersey )

16. FACTORIES
MULTI DIMENSION IMPACT ACCOUNTING

17. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPFORD FACTORY IN THE 1920s

18. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPFACTORY BUILDING IN CHICAGO

19. INDUSTRIAL MACHINERY AND
EQUIPMENT
MULTI DIMENSION IMPACT ACCOUNTING

20. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPHOT STRIP ROLLING MILL

21. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPMINING EQUIPMENT

22. TRANSPORT EQUIPMENT
MULTI DIMENSION IMPACT ACCOUNTING

23. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Tractor Trailer Rig EOP

24. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Container Ship EOP

25. HOUSING
MULTI DIMENSION IMPACT ACCOUNTING

26. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
URBAN HIGH RISE APARTMENTS EOP

27. COMMERCIAL BUILDINGS
MULTI DIMENSION IMPACT ACCOUNTING

28. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPCITY BUILDINGS

29. COMPUTERS AND
COMMUNICATIONS
MULTI DIMENSION IMPACT ACCOUNTING

30. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPIBM 360 MAINFRAME COMPUTER

31. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
EOPMOBILE WIRELESS TELEPHONY

32. Follow up: Request for Feedback
Getting these ideas fleshed out into a clear, simple but
comprehensive structure is a big job and remains a work-in-
progress. Many organizations are making progress with this,
but there is no broad universal framework yet that will enable
all the pieces to come together and work efficiently.
I would like to get feedback from anyone and everyone to
help move this initiative forward. While I have some clear
concepts about much of this architecture, there are many
details that I do not know enough about and need help. So,
please feel free to contact me (peterbnyc@gmail.com).
Please put something relevant and catchy in the subject line.
MULTI DIMENSION IMPACT ACCOUNTING

33. Some links and contact information:
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 for MDIA slidesets
http://www.truevaluemetrics.org/DBadmin/DBtxt001.php?vv1=list0200-Burgess-p3-Slidesets
MULTI DIMENSION IMPACT ACCOUNTING