The basic principles of accountancy and the core conceptual design of the double entry accountancy system are very powerful. These are used as the underlying foundation for MDIA which applies them not only for money profit accounting and reporting, but also for accounting and reporting for impact on people and impact on planet.

1. 10:44 PM
peterbnyc@gmail.com
www.truevaluemetrics.org
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
The Strengths of
Conventional Accounting
@truevaluemetric

2. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Accounting has been very successful over a very
long time in organizing large amounts of financial
data efficiently to manage large business
organizations.
Reporting for even very large organizations can
be summarized in a simple widely understood
manner.
MDIA does something very similar for every aspect
of the broader society, the economy and the
environment.
This is shown in the next few slides.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp

3. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Accounting is a way to organize very large
amounts of financial data very efficiently.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp
Strengths of Conventional Accounting

4. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Transaction information is organized into
'accounts'.
'Accounts' are either 'balance sheet' accounts
or 'profit and loss accounts'.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp
Strengths of Conventional Accounting

5. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Accounts may be aggregated in order to
present summary reports.
Conventional accounting has well established
rules about how aggregation or consolidation
is done.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp
Strengths of Conventional Accounting

6. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Because of the 'double entry' construct of
conventional accounting it is possible to
calculate the 'profit' for a period without
having all the transaction information.
The CHANGE in the balance sheet from
the beginning of the period to the end of
the period is the same as the PROFIT
for the period.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp
Strengths of Conventional Accounting

7. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
Many of methods of recording transactions
may also be used for detailed analysis and
the creation of 'cost accounts'.
There are many varieties of cost accounting.
One of the most powerful techniques in cost
accounting is the use of 'standard costs' for
cost and operational analysis.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp
Strengths of Conventional Accounting

8. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
In conventional accounting, there is a very
clear distinction between the accounting
and the audit.
Audit is never a substitute for accounting.
All that audit does is to validate and verify
that the accounting and reporting is being
done in accordance with the rules.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp
Strengths of Conventional Accounting

9. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
MDIA uses the concepts of conventional
accounting in order to build a system for
reporting impact on people and planet that
is as rigorous as the system used in money
profit conventional accounting.
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp
Strengths of Conventional Accounting

10. 10:44 PM
MULTI DIMENSION IMPACT ACCOUNTING (MDIA)
May 2014
QUESTIONS? FEEDBACK?
peterbnyc@gmail.com
www.truevaluemetrics.org
@truevaluemetric
C:TVMwebsiteWebsiteTrueValueMetricsOrgTVM-papersMDIA-DiagramsMDIA-Pres-B-Strengths-of-Conventional-Accounting-140517.odp