
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
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:
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Picture:
source

Picture:
source
Links:
Google search,
pdf,
Mapping all Braincells