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 ([email protected]). Please put something relevant
and catchy in the subject line. MULTI DIMENSION IMPACT
ACCOUNTING
33. Some links and contact information: Peter Burgess
[email protected] 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