27 December 2015

Value Added Statement (VAS) - Trade Statement (TS)

Picture: Value added statement, or Trade statement; traded (sold/purchased) by the trader.

The Value Added Statement (VAS) show the value added by a company in the past fiscal year as its Contribution to the GDP (Gross Domestic Product/Value) of its Home country, and how it is appropriated.  
It is regarded as a part of social responsibility accounting (link).

A Value Added Statement (or Trade statement) is like a Balance sheet for an Income statement.

Balance sheet
A Balance sheet: Assets (by mobility) - Liabilities (by owner) = 0
Is a summary of 'All Resources with Financial Attributes'.
Shows a Point in Time

Income Statement
A Value Added Statement: Trades (out) - Trades (in) = 0
Is a summary of 'All Trades with Financial Attributes'.
Shows a Change in Time

Turnover (of resources)
Old: Turnover = Sales revenue ÷ Assets
New: Turnover = Resources (@ customer/stakeholder) ÷ Resources (@ producer/supplier)
Pushing the 'resource value' back in the process is one way to eliminate waste

Trade StatementI prefer to call it Trade Statement' instead of Value Added Statement'.
Why ?
* Bend 'Trade' and it still gives the right associations; a trade, to trade, traders
    Compare with "a contribution, to contribute contributors".
* ...

Trade statement (trades, traders)
Output: Products & Service, sold (purchased by Customers)
Input: Products & Service, purchased (sold by Suppliers)
=Gross value
Process: Depreciation, adjustment
=Net value
Process: Labour (sold by employees)
Process: Interest (sold by creditors)
Process: Dividend (sold by shareholders)
Process: Taxes (sold by society)
Process: Retained earnings (sold by the organisation/company)
=0 (all trades between all traders)

Trader What                   2012
Customers Sales revenue 192 676 100%
Other Other income 24 652 13%
Suppliers Cost of materials -122 450 -64%
Other upfront expenditures -22 077 -11%          Excl. Out+In
Misc Depreciation and amortization -13 135 -7% Σ: -59 667 100%
Employees Wages, salaries, benefits -29 503 -15% -29 503 49%
Creditors Interest expense -3 957 -2% -3 957 7%
Societies Taxes, duties -4 322 -2% -4 322 7%
Shareholders Dividend (or proposal for) -1 639 -1% -1 639 3%
The company Retained earnings -20 246 -11% -20 246 34%
Table: VW Value Added Statement 2012

The categorizations are not 100% perfect, but it shows the direction - the vision. 
Justice is governed by fair/just trade. What's just is relative to most people. 
Good accounting/categorisations/labellings makes it debatable/manageable by a justice system. 
A communications framework. 

Effectiveness & Efficiency
Effectiveness can be measured from One or All Traders perspective.

Picture: Efficiency = same Output with less Resources. Effective = more correct Output

Effectiveness can be measured as
a) Internal - from our set targets, or
b) External - from the traders targets.

Picture: Analytical framework

Current state
1. Understand the Output; What=Current state,
    Understand the Input+Process; Why=Root cause (the Influencing factors)
2. Understand the Function; Output = Process({Input n}). Predict the output
Desired state
3. Understand the Output target; use the Function to get the desired Output
Note: Here Output=both the Product and the Effect (outcome)

Picture: Development of Product/Process + Fed by a) Vision, or b) Unsolved problems

Picture: SmarterDraw

Control resilience theory (link)
"Once you identify the relevant parameter that controls the system's resilience, you can begin to tackle how to manipulate that resilience--how to enhance resilience or restore resilience"

Picture: Decisions are based on Comparisions; if(comparision;if-true,if-false)

Comparators. =/,</>.
Compared to a Norm/Target/Desired state, Vision/Mission.
AND: all comparisons must be true. OR: none can be false.
Boolean: compare(sum(comparisons))
Set: can be dimensions like {true, false, other}, or measures/numbers

The process of Computation is a (one form of) transformation of measures/numbers.
A process is time based sequence, also called algorithm.
Efficient process=least resources (incl. time)

Picture: Same conclusion (different illustration)

Always happy to see when others have come to the same conclusion:

Picture: Source cbsolutions.net

Picture: source

Picture: source

Links: Google search, pdf, Mapping all Braincells

23 December 2015

Mathematical theory & Model - another weekend

Picture: The Development of Mathematical theory; Fundamental+New. Builds a model.

Modern development: A lesson learned by mathematics in the last 150 years is that it is useful to strip the meaning away from the mathematical assertions (axioms, postulates, propositions, theorems) and definitions.
One must concede the need for primitive notions, or undefined terms or concepts, in any study. Such abstraction or formalization makes mathematical knowledge more general, capable of multiple different meanings, and therefore useful in multiple contexts. 

Structuralist mathematics goes further, and develops theories and axioms (e.g. field theorygroup theorytopologyvector spaces) without any particular application in mind. 
An axiom or postulate is a premise or starting point of reasoning. As classically conceived, an axiom is a premise so evident as to be accepted as true without controversy.
In mathematics, a theorem is a statement that has been proven on the basis of previously established statements, such as other theorems—and generally accepted statements, such as axioms
Conclusion: A mathematical theory is a (just) building block, when we build a model of the world. The lattice for resources - a set of rules. Separate between Context (sammanhang), Content (innehåll) och 
Operations can involve mathematical objects other than numbers. 
* The logical values true and false can be combined using logic operations, such as andor, and not
Vectors can be added and subtracted.
Rotations can be combined using the function composition operation, performing the first rotation and then the second. 
* Operations on sets include the binary operations union and intersection and the unary operation of complementation
Operations on functions include composition and convolution.


Operations on sets include the binary operations union and intersection and the unary operation of complementation.
The logical values true and false can be combined using logic operations, such as andor, and not
Logics: True, False. AND(A=B), OR(A+B), >,<

In mathematics, a group is an algebraic structure consisting of a set of elements together with an operation that combines any two elements to form a third element. 
Arithmetic: A+B:  A=Operand, +=Operation (+,-,x,/=arithmetic operators, unicode)
 Unary: --1, -+1 (one operand), 
 Binary: 1+1 (two operands), 
 Ternary: If(A;True, False)
Postfix: 2!, Prefix: sin(x)

f(x) = x^2, x is called an argument, and since it's one argument it's an unary function.
f(x,y) = x^2 + y^2, is binary function.
The number of arguments that a function takes is called the arity of the function.

Picture: f(x) is similar to f(x) = Process(Resources). Concept. Belief

Category is an algebraic structure that comprises "objects" that are linked by "arrows".

Two types of resources: 
a) Type1: Is a state (finite/consumed/scarce, has potential) : Time, Money, Energy, etc
b) Type2: Is a description (meta, propagates, expressive/cognitive) : Information, 

Philosophy (Information --> knowledge (epistemology) --> wisdom (fundamental insight) ---> mathematics 
A codified expression is called a language (any form), which makes it cognitive - possible to become aware. Sign (can be interpreted/semiotic) or Concept (sv. begrepp/gripbar). 
Research & Development precedes any robust (mathematical/fundamental) Proof of Concept.

Analyte (analytical chemistry/methods) = something you want to analyse/measure, quantitative.
Through metrology (=science of measure), 
Human sensory analysis = something you can perceive/sense/feel, qualitative - good/bad for some reason.

Value lies in the ethical domain (good/bad) - as outcome - need a evaluator (stakeholder, sv. intressent).

The human brain has 86billion neurones and trillions of connections
How many computers (or what software with feedback) does it takes to come up with something equivalent - with a slow moving equilibrium. 

Pi found in quantum physics (Wallis product), though most efficient is Viète's formula.

Ethics: What you see is what you get
DNA motor: 1000x faster. Now 1/10 of what Natur can do

Semantics is the study of meaning. Formal semantics is about attaching meaning to expressions.
Being an expression is a syntactic concept. An expression must be well-formed 2+3 is well formed, but the expression *2+ is not.

Calculus - change, over time (requirement)
Calculus is change, and requires time. 
Geometry is space, and requires time. 
Algebra is 
Calculus is the mathematical study of change, in the same way that geometry is the study of shape and algebra is the study of operations and their application to solving equations. It has two major branches, differential calculus (concerning rates of change and slopes of curves),[1] and integral calculus (concerning accumulation of quantities and the areas under and between curves);[2] these two branches are related to each other by the fundamental theorem of calculus. Both branches make use of the fundamental notions of convergence of infinite sequences and infinite series to a well-defined limit. Generally, modern calculus is considered to have been developed in the 17th century by Isaac Newton and Gottfried Leibniz. Today, calculus has widespread uses in scienceengineering andeconomics[3] and can solve many problems that algebra alone cannot.
Calculus is a part of modern mathematics education. A course in calculus is a gateway to other, more advanced courses in mathematics devoted to the study offunctions and limits, broadly called mathematical analysis. Calculus has historically been called "the calculus of infinitesimals", or "infinitesimal calculus". The word "calculus" comes from Latin (calculus) and refers to a small stone used for counting. More generally, calculus (plural calculi) refers to any method or system of calculation guided by the symbolic manipulation of expressions. Some examples of other well-known calculi are propositional calculuscalculus of variations,lambda calculus, and process calculus.

Value added

We produce, and we consume.
That's the main components for all life, in the 24hr cycle.

Let's generalize for a while - the general cycle is...
8hrs: we produce something (for money)
8hrs: we consume something (for money)
8hrs: we sleep (maintenance)

Fair trade: Fair exchange
Fair share: Fair division of Value added, to various stakeholders.

GDP = Gross Domestic Product = Gross Value added Domestic = ... Profit ...
Gross = (Revenue - Intermediate costs) = Value added, for Stakeholders
Net = Gross - ...

Revenue less cost of sales diagram

Note: Value added here is only monetary = they can be traded

Axiology (from Greek ἀξίᾱaxiā, "value, worth"; and -λόγος-logos) is the philosophical study of value. It is either the collective term for ethics and aesthetics[1].
Axiology studies mainly two kinds of values: ethics and aesthetics. Ethics investigates the concepts of "right" and "good".

Value is based on two things
1) trade value 1: the supply value; effort, cost to supply the value, and 
2) trade value 2: the demand value; effort, cost to demand the value.
If there is an exchange, this is the trade value = the price

Modern trade systems, only has trade values (prices); no fixed tickets.
This means that the traders may benefit from tricking the trade system logics.
The trade systems may want to know the 
a) the supply, demand
b) the traders (supplier/demander) financial strength, or exploit the weakness/desperation.

The justice system (right/good) may want to defend a certain (value based) belief.
Exemple: Plato "Is what is morally good commanded by God because it is morally good, or is it morally good because it is commanded by God?" 
a) Scientific justice, b) Divine justice
Divine justice is close to Aristocratic; when the Divinity is a person.

Meritocratic justice; Reward & Punish
According to meritocratic theories, goods, especially wealth and social status, should be distributed to match individual merit, which is usually understood as some combination of talent and hard work. According to needs-based theories, goods, especially such basic goods as food, shelter and medical care, should be distributed to meet individuals' basic needs for them; "from each according to his ability, to each according to his need"; Pareto efficient redistribution.
Rights to Resource, Processes ?

From the Abled to the Disabled. From the Have (resources) / Can (process), To the Haven't/Can't. 

Governance - Democracy - Freedom - Rights
" 'Power of the people' corresponds with Abraham Lincoln's famous designation of democracy as ' government of the people, by the people and for the people'. ... US Declaration of Independence; 'government by consent of the governed'. .. is the principle upon the just powers of government rest'. ... (not majority rule, but natural rights). ... tyrant, one unwilling to submit to any higher principle than the unrestrained exercise of his or her will. ... individual freedom is not the ideal ... rather ... respect for individual freedom.
Societies must be governed by those who are able to rise above the intensive self-centeredness of their own emotive, appetitive, and egoistic impulses, so as to concern themselves wisely and dispassionately with the common good. The only human faculty capable of such self-transcendence is reason; hence only the philosopher, dedicated to the cultivation of reason, is suited for governance. ... Plato's contention is that those able to see this good order will also see that their personal good is best realised through it. It is only the Philosopher, then - the true philosopher - who will have the intellect, character, and (therefore) the motivation to rule justly and wisely. ... for democracy to succeed, it must cultivate 'philosopher citizens'. ... democracy (is the only system with ideals to) entails the right to pursue those values. ... democracy respects the 'dignity' of every other citizen, and recognise that this responsibility supersedes commitments to their strictly individual interests. .. the law of respect for each citizen as end-in-themselves. ... Kant manages to equate adherence to this principle with the ideal of individual freedom. ... It is a freedom with a self-chosen morality. ... who willingly affirms a duty to do what is right as the highest expression of his own free will. ... (a freedom of fear of others free will) ... the right kind of education is essential to a sound democracy. democracy demands that its citizen embody a specific, and identifiable set of moral and intellectual virtues. .. the culture of consumer-capitalism fills the ethical void with a continual stream of messages equating happiness with self-gratification (instead of social-gratification). ... Our educational system has largely lost sight of what Plato here calls 'high matters' - by which he means the disciplined examination of the values that govern private and public life. 
(Philosophy Now, Oct./Nov, Philosopher-Kings In The Kingdome of Ends, Richard Oxenberg, page 22)

The noumenon (/ˈnɒmɨnɒn/) is a posited object or event that is known (if at all) without the use of the physical senses.[1][2] The term noumenon is generally used in contrast with, or in relation to phenomenon, which refers to anything that can be apprehended by, or is an object of, the physical senses.  In Platonic philosophy, the noumenal realm was equated with the world of ideas known to the philosophical mind, in contrast to the phenomenal realm, which was equated with the reality as perceived via the physical senses, as known to the uneducated mind.[3][4] ... (noumenon = the meta/2nd level, to make sense of the sense. f.e. the word apple is not the apple, and fruit is a category to make sense out of the interrelationships/correlations needed to derive mathematical absolute/statistical laws).
Kant's Transcendental Aesthetic deals with sensibility and with objects as far as they can be perceived, the word aesthetic being derived from the Greek root "aesthesis" meaning capable of sensation or feeling. (to first sense aesthetically, before making sense by the logic).

Needs to be structured.
a) Working; Yes/No
b) Those that work; ...

Data source: From Unstructured, to Structured. From Internal, to External.
Transformation: ...
Visualisation: ...

Good method, but the areas needs to be changed.

Good discussion starter; but much else needs to be changed.

Picto-graphical Concept programming (objects/modules).
Are we ready for a Conceptual (high level) language ?


Gaming theory (motivation):
Apparently in gaming theory they found a 70% reward to be an optimum.
Too easy or too hard and it becomes boring  (non motivational).

Motive power

Semantics (from Ancient Greekσημαντικός sēmantikós, "significant")[1][2] is the study of meaning.
In linguisticsmeaning is what the source or sender expresses, communicates, or conveys in their message to the observer or receiver, and what the receiver infers from the current context.[1]
Linguistic semantics focuses on the history of how words have been used in the past. 

Different senses:


Corruption is a form of dishonest or unethical conduct by a person entrusted with a position of authority, often to acquire personal benefit. 

Degree of corruption = Monopoly – Morality + (Discretion – Transparency)
Reward - Risk.
Monopoly = No alternatives; no one benefits from the alternative.
Hierarchical = unquestioned authoritarian, undemocratic decision making, respect/honor
Exclusive = exclusion corrupts, information is a resource in almost unlimited supply (no cost).

Morality = Right balance between, Individual/Social benefit. The foundation of any developed society is what our predecessors have build for (the benefit) for us all. That is the platform (the starting point) on which the individual can take the society even further. Unequal societies rewards corruption; the risk/reward makes it worth it.

Discretion – Transparency = The wrongdoing has to be hidden.