1. MULTI DIMENSION IMPACT ACCOUNTING
File: MDIA-p3-03-PLACE-150705.odp Peter Burgess (c) All rights reserved
MDIA
PLACE
EVERYTHING HAPPENS IN A PLACE

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

3. PLACE
Where people live
Where people work
Where mines, factories are located
Where part of the supply chain is located
Where retail stores are located
Where resources are depleted
Where environment is degraded
Where ecosystems operate
MULTI DIMENSION IMPACT ACCOUNTING

4. PLACE is also ...
The universe;
The planet earth;
Multi country regions;
Individual countries;
Individual states, counties or parishes;
Cities, towns, municipalities;
Communities and neighborhoods.
MULTI DIMENSION IMPACT ACCOUNTING

5. PLACE has permanence - it
doesn't move or disappear …
I grew up in Okehampton, a small town in the South-
West of England. In the 1930s the populations was
around 3,500, in the 1950s a little over 4,000 and in the
11th century in the hundreds according to the
Domesday Book compiled by William the Conqueror.
PLACE is a very good place to measure
PROGRESS and PERFORMANCE.
MULTI DIMENSION IMPACT ACCOUNTING

6. ALL economic activity is located in a PLACE
MULTI DIMENSION IMPACT ACCOUNTING

7. Performance of a PLACE is the result of
aggregation of all the economic activity
located in the place
MULTI DIMENSION IMPACT ACCOUNTING

8. PLACE is complex … but a whole lot simpler
that the socio-enviro-economic system at the
national or global (planet) level.
The follow slides will give you an idea ...
MULTI DIMENSION IMPACT ACCOUNTING

9. MULTI DIMENSION IMPACT ACCOUNTING

10. MULTI DIMENSION IMPACT ACCOUNTING

11. MULTI DIMENSION IMPACT ACCOUNTING

12. Data and analysis at the level of community,
town or city (PLACE) is a whole lot more
effective than data and decision making higher
up the system.
The follow slide shows this ...
MULTI DIMENSION IMPACT ACCOUNTING

13. MULTI DIMENSION IMPACT ACCOUNTING

14. PLACE reflects ALL the dimensions of the
Socio-Enviro-Economic system
The follow slides are a reminder of the elements
of this complex system ...
MULTI DIMENSION IMPACT ACCOUNTING

15. MULTI DIMENSION IMPACT ACCOUNTING
Sun
Fundamentals of the Socio-Enviro-Economic SystemBOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Capital … virtual masquerading as reality.
Human Capital … PEOPLE … are complex, because we
originated through nature, but our inventions are simple.
Man Built Capital is so simplistic compared to Natural
Capital. While in some part amazing, it is very crude
compared to what is the norm in Natural Capital.
In the end it is Natural Capital that is going to determine
everything. NC is infinitely complex and resilient and will
outlast everything Man Built … and People are unlikely to
survive in a future mass extinction that is quite certain.
The source of ALL energy to drive the system
EOP

16. 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
EOP
BOP = Beginning of Period STATE
EOP = End of Period STATE
PROGRESS is Change in STATE during the period.
ALL the elements of the BOP and EOP STATES
need to be quantified
PEOPLE PROGRESS when MY STATE and
EVERYONE'S STATE improves
AND
there is little degradation of NATURAL CAPITAL
SOCIO-ENVIRO-ECONOMIC SYSTEM
AND
In addition little degradation of MAN BUILT CAPITAL
AND
PLACE is where all of this comes together

17. MULTI DIMENSION IMPACT ACCOUNTING
ELEMENTS OF THE SYSTEM by SEGMENT
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
MoneyFood Nature (life)
Sun
Nature (life)
Capital Market
Value
Water
Nature (life)Land
Shelter
WaterClothes
Nature (life)Air
Health
Ecoservices
Education
Skills
Recreation
Culture
Physical
capital
Religion
Knowledge
capital
Security
Energy
Mobility
Profit
Physical
capital
Physical
capital
Social
capital

18. MULTI DIMENSION IMPACT ACCOUNTING
FOCUS ON PLACE
and the
PLACE PERSPECTIVE

19. All the activities and impacts of PEOPLE are
located in a PLACE …
MULTI DIMENSION IMPACT ACCOUNTING

20. MULTI DIMENSION IMPACT ACCOUNTING
SunSun
BOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
EOP
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Person uses money
to satisfy needs
● Food
● Water
● Shelter
● Clothing
● Recreation
● etc
Person Lives
● Eats
● Drinks
● Is protected
● Has clothes
● Recreates
● etc
Person contributes
time, energy and
talent:
● to family;
● to friends;
● to society;
● to employer.
Person thrives
Family thrives Friends thrive
Society thrives
Impact metrics
update social
capital
Organization
thrives … money
metrics update
financial capital
Consumption
impacts Man
Built Capital and
Natural Capital
through supply
chain, use and
post use waste
chain. Impact
metrics update
MBC and Natural
Capital
Activities and Impact of a Person
Activities Person Impact External Impact
Person Works
● Value to employer
● Uses time and skill
● Earns money

21. The PLACE has a relationship with the power of
the SUN ...
MULTI DIMENSION IMPACT ACCOUNTING

22. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
The energy for
everything has
come from the
sun. Fossil fuels
are the result of
ancient photo-
synthesis. The
sun possesses
enough energy
to power the
future, but we
do not know
how best to
fund such a
change using
conventional
analysis.
Sun
About the SunAbout the Sun

23. … and there are elements of NATURAL CAPITAL
in the PLACE ...
MULTI DIMENSION IMPACT ACCOUNTING

24. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About Natural Capital EOP

25. … as well as various elements of MAN BUILT
CAPITAL ...
MULTI DIMENSION IMPACT ACCOUNTING

26. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Institutional Capital
Physical Capital
Knowledge Capital
Social Capital
Financial Capital
About Man Built Capital

27. Because PLACE does not move … it is always
in the same physical location … it is an ideal
entity for the measurement of PROGRESS and
PERFORMANCE …
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
EOP
EFFICIENCY AND EFFECTIVENESS
Reference … see MDIA - CORE CONCEPTS

29. The STATE of a PLACE at any moment in time is
a function of the past (history), the present, and
the future …
MULTI DIMENSION IMPACT ACCOUNTING

30. … it is an aggregation of the STATE of each and
everyone of the PEOPLE in the PLACE … and
aggregation of these PEOPLE characteristics ...
MULTI DIMENSION IMPACT ACCOUNTING

31. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Genetic makeup
About Human CapitalSTATE is a function of Past, Present and Future
Our nurturing
Our surroundings
Our education
Our health care
The Past
Our food
Our water
Present Future
Accumulated
past
The present
value of the
future
The situation
in the
present
Opportunities
based on the
characteristics
of the PLACE
Opportunities
based on the
capabilities of
the individual

32. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Human
Capital
Food
Water
Shelter
Clothes
Health
Education
Skills
Recreation
Culture
Religion
Security
Energy
Mobility
Our genetic makeup
About Human CapitalA Person's Past
Our nurturing
Our surroundings
Our education
Our health care
Our food
Our water

33. How does the PLACE perform with respect to
ALL of these aspects of a PERSON'S QUALITY
OF LIFE?
MULTI DIMENSION IMPACT ACCOUNTING

34. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Wellness
STATE – Quality of Life
Capabilities
Financial wealth
Housing
Surroundings
Wellness
State of health is a
major determinant of
quality of life. With
good health, everything
is possible, without
good health, much less.
A big part of wellness
is determined by
lifestyle what we eat
and drink and how
we exercise
Family and friends
Community
Opportunities
Security

35. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Capabilities
Capabilities are
enhanced by
education and
skill training.
They are also
enhanced by
lifetime learning.
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

36. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Wealth
A modest amount
of financial wealth,
enough to provide
financial security is
valuable and reduces
stress enormously.
A vast amount of
financial wealth adds
rather little to quality
of life … but does give
bragging rights in a
money centric
society
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

37. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Housing
An adequate amount
of shelter is a basic need.
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

38. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Surroundings
Surroundings matter
especially for children.
Children learn from
their surroundings.
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

39. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Security
Security … being safe is
important to quality of life
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

40. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Family and friends
Family and friends
are central to quality
of life because, above
all else, people are
social beings
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

41. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Community
Community is something
beyond family and friends.
Community is place, and
where there is access to
the goods and services that
are needed. Community
is where there is access
to education and health
services, to utilities, etc
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

42. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Opportunities
Capability on its own
is not enough. There
also must be
opportunity, and this
is usually beyond the
scope of an individual
STATE – Quality of Life
Wellness
Capabilities
Financial wealth
Housing
Surroundings
Family and friends
Community
Opportunities
Security

43. How the PLACE performs with respect to ALL
aspects of a PERSON'S QUALITY OF LIFE is the
critical measure of the performance of a
PLACE.
MULTI DIMENSION IMPACT ACCOUNTING

44. The PLACE is constrained by the NATURAL
CAPITAL of the PLACE ...
MULTI DIMENSION IMPACT ACCOUNTING

45. My first memory of PLACE in my formal economics
training was to do with LOCATION OF INDUSTRY and the
fact that almost all the old great cities were located at the
mouths of great rivers … something clearly to do with the
NATURAL CAPITAL of the PLACE …
MULTI DIMENSION IMPACT ACCOUNTING

46. Typically human habitation requires LAND and
the living of life by PEOPLE does damage to
many or all of the elements that make up our
NATURAL CAPITAL …
Doing the least damage to NATURAL CAPITAL
must be a metric in the analysis of PROGRESS
and PERFORMANCE.
MULTI DIMENSION IMPACT ACCOUNTING

47. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About Natural Capital EOP

48. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About nature (life)
Nature (life)
Biodiversity
The amazing
story of
evolution
and the
diversity
that has
emerged
EOP

49. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About ecoservices
Ecoservices
Nature is
extremely
complex, but
it is balanced
with a place
for everything
and everything
it its place.
Ecosystem
services provide
photosynthesis,
nitrogen fixing,
carbon sequestration,
and …
EOP

50. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About air pollution
Air pollution
People and man
built structures
and systems
pollute the air
which in turn
degrades quality
of life. This has
become a major
issue in urban
centers around
the world.
EOP

51. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About GHG emissions
GHG Emissions
Green House Gas
(GHG) emissions like
CO2, CH4 and others
cause global warming,
which is having impact
on weather patterns
and other systems.
The natural ecosystem
service capacity is not
enough to balance
the emissions
originating from
man built systems
EOP

52. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About Land
Land
Land is a limiting
factor with many
competing uses.
Natural processes
and ecosystem
services require
land and so do
man built structures
and systems
EOP

53. 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
Nature (life)
Land
Water
Air pollution
Ecoservices
GHG emissions
About Water
Water
Water is a also a
limiting factor and
essential for life
and many man
built processes.
There is abundant
water but only limited
fresh water. Some places
have abundant natural
water, other places
have water shortage
EOP

54. It is MAN BUILT CAPITAL in its many forms that
makes it possible for PEOPLE to have a good
QUALITY OF LIFE and STANDARD OF LIVING …
MAN BUILT CAPITAL should enable the highest
QUALITY OF LIFE for PEOPLE while doing the
least damage to NATURAL CAPITAL
MULTI DIMENSION IMPACT ACCOUNTING

55. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Institutional Capital
Physical Capital
Knowledge Capital
Social Capital
Financial Capital
About Man Built Capital

56. Institutional Capital comprises:
● Government Departments and Agencies;
● A framework of law;
● Systems of law enforcement and justice;
● Security capacities;
● Corporate organizations;
● Health systems;
● Education systems;
● etc.
MULTI DIMENSION IMPACT ACCOUNTING

57. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Institutional Capital
Physical Capital
Knowledge Capital
Social Capital
Financial Capital
About Man Built Capital
Institutional
Capital
Government,
Rule of Law,
Companies,
Organizations.
Systems for:
Health
Education,
Banking,
Social Services,
Security,
etc.

58. Physical Capital
Some of this is owned by Corporate
Organizations, some by Private People
and some by the Public Sector.
Ownership has been a key feature of
modern capitalism … and is worthy of
more study and understanding.
MULTI DIMENSION IMPACT ACCOUNTING

59. Physical Capital comprises:
● Infrastructure;
● Factories;
● Machinery and equipment;
● Transports vehicles (ships, aircraft,
trucks, railcars, etc.);
● Houses and apartments;
● Offices, hotels and commercial
buildings;
● Computers, etc.
MULTI DIMENSION IMPACT ACCOUNTING

60. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Institutional Capital
Physical Capital
Knowledge Capital
Social Capital
Financial Capital
About Man Built Capital
Physical
Capital
Commercial buildings,
Factory buildings,
Housing, Stores,
Machinery and equipment,
Vehicles,
Infrastructure:
Roads and bridges
Railroads
Seaports and airports
Communications
Water and sewer
Electricity, Oil and Gas,
Hospitals, Schools.
etc.

61. Knowledge Capital
What we know enables productivity and
performance.
Some of this is shared universally and is
available for free use, and some is owned
by Individuals and Business entities and
may be used for their private gain at the
expense of society as a whole.
MULTI DIMENSION IMPACT ACCOUNTING

62. Knowledge Capital
Knowledge Capital is expanding rapidly …
faster than at any previous time in history.
Important parts of Knowledge Capital have
been created with Government funds, often
for military and security purposes.
MULTI DIMENSION IMPACT ACCOUNTING

63. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Institutional Capital
Physical Capital
Knowledge Capital
Social Capital
Financial Capital
About Man Built Capital
Knowledge
Capital
Mathematics
Physics
Biology
Chemistry
Science of materials
Computer science
Information technology
Biotechnology
Artificial intelligence
Robotics

64. Social Capital comprises:
● Networks of friends and family;
● Community;
● Culture;
● Religion;
● Community … people;
● Community … access to services;
● Social safety net;
● etc.
MULTI DIMENSION IMPACT ACCOUNTING

65. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Institutional Capital
Physical Capital
Knowledge Capital
Social Capital
Financial Capital
About Man Built Capital
Social Capital
Relationships
Human interaction
Teamwork
Religion
Culture
History

66. Financial Capital is part of Man Built
Capital but separated out for the purpose
of analysis because it has become such
an important part of the conventional way
of measuring …
… specifically …
(1) business profit;
(2) capital market valuations; and,
(3) GDP growth.
MULTI DIMENSION IMPACT ACCOUNTING

67. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
WHAT IS THIS?
Future flows
of profit
determine
capital market
valuation.
Change
becomes an
Increment to
financial capital.
This is the
making of
fictional or
virtual wealth
Debits and
credits of
money
result in
profit which
Increments
financial capital
About Financial Capital
Money
Stocks and Bonds
Ownership of Securities
Real Estate
Ownership of Physical
Assets
Ownership of Assets
Ownership of Debt
In the end, all FC is
owned by people
WHICH OF THESE IS RIGHT?

68. The BUSINESS ORGANIZATION is a key driver
of PROGRESS and PERFORMANCE in a
PLACE …
… but this is only achieved when BUSINESS
takes into consideration the EXTERNALITIES.
MULTI DIMENSION IMPACT ACCOUNTING

69. Maximizing for PROFIT is not enough …
… the GOOD IMPACTS and the BAD IMPACTS
on PEOPLE and NATURAL CAPITAL must also
be brought into account …
MULTI DIMENSION IMPACT ACCOUNTING

70. The next 4 slides
STATE BOP … ACTIVITY ACCOUNTING … STATE EOP
● Financial accounting:
● Financial accounting plus GOOD impacts;
● Financial accounting minus BAD impacts;
● Financial accounting with BOTH impacts.
MULTI DIMENSION IMPACT ACCOUNTING

71. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
Financial Accounts describe Economic Activity
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

72. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
ADD positive impact not accounted for
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
What value to society?
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

73. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
DEDUCT negative impact not accounted for
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
Negative
impact
File: MDIA-Framework-004-150411-WIP.odp Peter Burgess (c) All rights reserved
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

74. MULTI DIMENSION IMPACT ACCOUNTING
Sun
FINANCIAL
ACCOUNTS
ACCOUNTING FOR EVERYTHING
REVENUES
Products Sold X Price
Products Bought X Price
BOP EOP
Energy Bought X Price
Employee Benefits
Employee Payroll
Other expenditures
Asset use costs
Depreciation
Financial expenses
Pro-good expenditures
Taxation
Profit
REVENUES
Products Sold X Price
VALUE to buyer
Equals
HUMAN CAPITAL ADD
Wages and benefits
What value to
employee?
Pro-good expenditures
What value to society?
Taxation
What value to society?
For products and
energy bought
and this process
Free use of the
commons and
public services
& infrastructure
Degradation
of land
Water scarcity
and degradation
Air pollution:
Impact on people
Air pollution:
Impact on climate
Air pollution:
Impact on people
Solid waste
Resource
depletion
Environmental
Degradation
POSITIVE
IMPACT NOT
ACCOUNTED
FOR
Negative
impact
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun

75. The next slide shows how the
operations of a process:
(1) through the FINANCIAL P&L report impact
on the money balance sheet of the
operation; and,
(2) through the IMPACT accounts report on the
impact the operation is having on society
and the environment.
MULTI DIMENSION IMPACT ACCOUNTING

76. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Accounts describe Financial Impact
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP
Impact Accounts reflect Externalities
Balance
Sheet
Changes
Impact on Institutions
Impact on People
Impact on Society
Impact on Physical
Impact on Knowledge
Impact on Resources
Impact on Environment
Impact on EcoSystem
Balance
Sheet
Changes
Balance
Sheet
Changes
Balance
Sheet
Changes

77. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Accounts describe Financial Impact
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP
Impact Accounts reflect Externalities
Balance
Sheet
Changes
Impact on Institutions
Impact on People
Impact on Society
Impact on Physical
Impact on Knowledge
Impact on Resources
Impact on Environment
Impact on EcoSystem
Balance
Sheet
Changes
Balance
Sheet
Changes
Balance
Sheet
Changes

78. Decision makers for the PLACE ...
The accounting for decisions for the PLACE
should have a similar form to that of a
BUSINESS.
The accounting should include BOTH the
financial dimension AND the impact on both the
PEOPLE and NATURAL CAPITAL.
MULTI DIMENSION IMPACT ACCOUNTING

79. MULTI DIMENSION IMPACT ACCOUNTING
Sun
BOP EOP
Sun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun SunSun
Financial
Capital
Human
Capital
Man Built
Capital
Natural
Capital
Sun
Financial Accounts describe Financial Impact
Financial Costs
Financial Profit
Financial Revenues
Financial
Balance
Sheet
BOP
Financial
Balance
Sheet
EOP
Impact Accounts reflect Externalities
Balance
Sheet
Changes
Impact on Institutions
Impact on People
Impact on Society
Impact on Physical
Impact on Knowledge
Impact on Resources
Impact on Environment
Impact on EcoSystem
Balance
Sheet
Changes
Balance
Sheet
Changes
Balance
Sheet
Changes

80. PUBLIC FINANCE ...
Funding for the PROGRESS of a PLACE should
be based on PROGRESS for PEOPLE rather
than on the prevailing Money Models …
PUBLIC FINANCE should be enabling the
building and maintenance of MAN BUILT
CAPITAL (such as INFRASTRUCTURE) so that
PEOPLE progress and NATURAL CAPITAL
does not suffer degradation but is remediated.
MULTI DIMENSION IMPACT ACCOUNTING

81. GLOBAL CRISIS ...
The funding systems for PLACE are a
shambles with the results that investment in a
better future for PEOPLE is being constrained
in ways that put the future at risk.
More than half the world's population live in
PLACES where basic services are either non-
existent or inadequate.
MULTI DIMENSION IMPACT ACCOUNTING

82. This a systemic failure that should not have
been possible … and much of the blame for
this rests with the FINANCIAL COMMUNITY that
is using an outdated system of metrics to make
very big decisions.
Metrics that look at the PROGRESS and
PERFORMANCE of PLACE, with a view that
embraces SOCIETY (PEOPLE) and the
ENVIRONMENT (PLANET) as well as MONEY
(PROFIT) is a step in the right direction.
MULTI DIMENSION IMPACT ACCOUNTING

83. 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

84. 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