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Tuesday, May 31, 2022

Accounting thoughts, Transformative potential and the third dimension

Every transactions or journals could be looked at from the glasses of transformative potential. For example you exchanged a chair for a table. A chair has transformative potential of $50, $50 could be transformed to 5 trays of Pizzas, so a chair has the transformative potential of $50 because the ownership of it could be expended / transformed into the ownership of 5 trays of Pizzas. 

Now a table could become 10 trays of pizza, so exchanging a chair and a table gives you $50 profit, which from the point of view of transformative potential means you got $50 extra in transformative potentials. 

So that's profit and loss... you could say that the shift from historical accounting to fair value accounting is objective because of this. Just because you bought an asset for $100 doesn't mean that currently the asset still has $100 worth of transformative potential, could be more could be less. 

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There are many directions to take from here but let's shift to another topic:

The first dimension of accounting is the debit side, the second is the credit side, and the third is something... let's call it the mehbit side. 

You could, probably fit in the transformation potential dimension in the mehbit side, or you're already good with p/l so no... ok. For me I'd put "Documentation" on the mehbit side.

Each debet - credit speaks existence of a source document, we could put the a dollar amount to that document in respect, and put that to the mehbit side. Every single transactions would increase the attributed dollar amounts not decrease, why? It supposed to work like history where data keeps on expanding instead of contracting. 

With this info we could check on the weight of documents of operations, a million dollar company might only had a 2 million dollars worth of documentation while a 500 thousand dollar company might worth 8 million dollars of documentations. 

Like the cash flow statement the types of documentations would be classified into different types. For example: internally generated and stakeholder based, so if you wanted to see only the stakeholder values you would be able to (internally generated provisions might be abusable/easy to manipulate). 

Now, documentations could be redundant so this is where things get "block-chainy"

Every correspondent transactions should be classified into a batch of documents, so instead of attributing the dollar amount to each documents/invoices/receipts, all of those documents would be grouped into the same batch because they speak of only one transaction. 

Miners could deserve rewards for removing redundancies from publicly available transactions, professional accountants who had access to private transactions would surely deserve appreciations for removing redundancies in the private situations.

The weight of the documents reflects the complexity of the nature of the company, the effectiveness/efficiency of the management, the network/relationships that the company's in (community contributions), ratio of the weight of documents with the transformative potentials, maybe good for tax purposes as well, if differenciated between positive/negative (relative to p/l) could be another confirmation for the accuracy of the whole accounting, what else?.

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In terms of transformative potentials you would want to classify the dimension of time. Sometimes it seems that a transaction brought you to a higher potential, but actually only for a short while. I mean you could tell just from the news, given ceteris paribus, the magnitude of one's potential at different points in time. 

So in the statement of transformative potentials you could arrange for the dimension of time as well. Definitely a tool to measure sustainability, but personally I like a targeted purpose for assets instead of going concern. But that's for another context.

Friday, May 6, 2022

This is depressing v.05

The expansion of the definition of negligence is depressing, say

The management was responsible for negligence if they let a slippery floor without warning or unattended. Ok... Should then the management still be responsible for not warning the people that the warning sign still was relevant even after it had been displayed since yesterday?

The government was responsible for negligence by not specifying whether the company's portion of insurance was a part or was not a part of fixed allowance included in minimum wage, alas the minimum wage payments were reduced for not only insurance but also tax gross ups. Should the government paid back everything that they had been accused of? Or the Government only should update the law? Or actually the law already works well and it's just a part of the grand scheme of things, without anyone noticing it...

Some artists were mad that their music containing samples of other musicians' tunes, were used without permission. They didn't specify that they had asked for the permission for the tunes though, so were they entitled for compensations by the user?

To what extent should you exercise duty of care? In the world of innuendos there were no lines, no boundaries, no limitations articulated.

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The lack of growth is subject to "Increase in entropy", 

"Increase in entropy" is subject to future collapse

Reliance in foundations bound to collapse leads to depression.

Mass reliance in collapsing assets would be massively depressing.

So instead of some instant, immidiate "care" that paid no attention to the underlying nature of the problems, we should expand our fortification against depression early, by setting up clear expectations of one's rights and responsibilities.

Monday, May 2, 2022

Is it Taboo? v.07

I often see parents love their children so much they give access to their children to all kinds of things that they could afford at maximum. I'm not a psychologist nor I'm a parent, as someone who is just an enthusiast on many different things like accounting, business, psychology, art, etc... I conclude based on the materials I've observed that this way is better:

Parents are responsible for the life of their children, they must always make sure that the children is not depressed for the rest of their lives (by depressed I mean the person helplessly kept on wanting to die). The parents are the one who's responsible for that other than the child himself/herself. 

Providing just enough is better. If the kids wanted more, they had to "buy" it from their parents or their uncles/aunts or other people. However some people outside offered dangerous materials, obviously it's risky but all families would have or should have their own way of facing this. 

Coming from this, kids should have had the better kit in facing the reality of the outside world. Moreover having "just enough" is not really that bad actually, it could be interesting.

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There's utility in me spelling this out... the end logic of this is, or one end of the logic of this is: If the child did well in life, the parents would've contributed positively (mainly intellectually and/or philosophically) to the child. If he/she didn't, the parents would still be responsible parents, but contributed not more than that. This is relieving for the child because if he/she chose to live modestly, he/she wouldn't be living in "debt", supposedly.

There's nothing wrong with living modestly as long as you contributed positively instead of negatively. 

Now, even if your parents gave you everything and you didn't gave a lot of currency worth back, it's still contractually or personally ok given that that's the way it were in your family. The reality is, still, people estimated their own contributions highly. 

The society also often judgemental while not being careful about their judgements

-_- v.02f

Let's say for an extreme example, there were a parent couple who gave their daughters "everything" and then they kind of expected that their daughter would not criticize them, gave them whatever they asked, and obeyed them all the time, and revered to them on top of that. 

Then they said my daughter is not living up to her potential, kind of indirectly ungrateful, secretly disrespectful, etc. 

Well to me, judging only from this simple point of view, this is to be expected because they weren't giving their daughter "everything", "everything" was a debt. She had little to none to own, and then little to none to offer. 

The feeling of inadequacy and poor quality out of their daughter came from the lack of quality of property she has, and she couldn't offer them a decent quality "services" or even "products". 

So the solution is you got to give people property, you just have to. The wisdom of the infrastructures that we are living on top of, democracy and capitalism, were not without reason. 

If she turned out to be an asshole, or even a psychopath/sociopath then that's lifetime worth of information. If she's a grateful child then it's genuine, and it's something to truly celebrate in perpetuity. Why would anyone rob themselves and their child out of that opportunity? Why not that compared to rationalizing that "Oh I should be grateful that she is not a suicide bomber" or something, or forcing one's self to "accept" it in whatever form it was? Be genuinely content with your life

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If I had an asshole kid, I'd probably tell him something like:

"Son, let's talk for a bit. This is about me, but also about you and everybody else in general. You always disrespectful towards your teachers, people who are working, at me... son this is not a good idea. What's good is for everybody to not do business with you, cause you're not being a good business"

Ok I'm suck at it maybe, but probably that delivers the point.

And after that you slap them, and hang them upside down in your basement... (joking)

The point is, what he owns he owns and he should be able to do whatever with it without me making it difficult for him owning what he owns. 

Monday, April 25, 2022

The problem with artificial Justice Laundering

So Justice laundering is when those who haven't achieved justice yet acquired it indirectly. For example the COVID medical staffs were ended up benefiting from the betterment of the technology of medicine, now they had the knowledge and probably the tools to do their job better than before the pandemic. Another example would be due to the development of cities, more infrastructures were built. People in the past might be troubled with their environment being destroyed, but now a lot of people had access to health care system, long distance transportation, the market, etc. 

A type of Justice Laundering is problematic for example money that were acquired through illegal ventures were distributed to underpaid public officials, or heroes of the community. Overpriced food were distributed to underpaid farmers, etc. Corruption, deceptive practices, scams, some of the proceeds went to people who created the solutions popularly used but weren't benefited by conventional trading in the past. This is because the perpetrators used that as shield to cover their businesses. 

The problem is if you wanted to make an adjustments to those, let's say by uphelding the law, or by audit, or by reconciliations, you would cut off some of the "Just" part of it. So it's very important when you started a project or a venture to be straight and obvious from the very beginning. Then it's "required" now to be able to identify all of the "Just" part entangled between violations in order to be able to compensate them after weeding off the fraud. 

However Justice laundering happens in nature, naturally, once you "fixed" a fraud, after that all the good that comes after would brought about more prosperity and more prosperity would brought about more prosperity until it reached those who were cut off previously.

The slowness of this process is a problem but it's only logical. In order to solve this problem we should increase the speed of this prosperity. How? By increasing the rate of correction massively both systematically and randomly. 

At first it would seem like Chaos, yes but no, because after the mentality gained momentum it would just going to be pleasant surprises.

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Where are we right now? Are we in neutral or have our gear shifted forward already? We are forward now because of the amount of people that have been lifted out of poverty, got access to the internet, health care etc. So we are already at the revelation momentum overall we are not at neutral. 

The lie is that we are not. 

So damn it just amplify

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Am I equating technological progress in science, policies, and communication with articulation? Am I saying that progress in articulation have a positive causal relationship with the progress in prosperity and Justice. Yes. 

Where's my proof? Personal logic / hypothesis, but couldn't you guys relate?

Why don't we try this, give royalties to gillette, most of us have been using that one razor for months if not years anyway. See what happens

Wednesday, April 20, 2022

Drunkenness of Hierarchy v.02e

Referring to my previous post this is not blaming but trying to point out things that usually are not being checked. 

A leader might think that he's in control of his subordinates but there's a side where the subordinates are the ones in control of him. The motive is to have a strong and stable hierarchy so that they could have a stable income. However when they feed the boss with so much ego that he became so difficult and so political, that's a sign that he has lost individual self. 

Because a hierarchy of society is not higher than the Truth, the Truth is accessible and equally as intense in all layers of society from the top to the bottom. The spirit of the Truth is to permeates all fractal. 

So you'd know that you'd be seeing a toxic hierarchy when:

1. The hierarchy is more important than the Truth

2. Truth at its best / purest form could only be accessed by selected few

3. It's hard to convey the Truth to other people without facing retaliation. 

I might be wrong about this, some leaders may be essentially a liar as an individual. But generally I believe that human beings wants to experience life, reality, and the Truth, not confined within the interest of their hierarchy. Also I might be wrong that the subordinates were ill-intended, no they might just be insecure (initially) and then had become too invested to go back anymore. 

The target is, to be able to solve the problem for everybody, why? because one man's scarcity is another man's risk, the inclination to injustice is fractal in presence. Just because we were at the top of the hierarchy doesn't mean that we'd be free from depression. If the hierarchy is toxic, that means we as being on the top were likely oblivious to the leash our subordinates were putting on us (usually its psychological/our psychological weakness not being put forward to be fixed). Being able to be fluid while still in the context of the Truth is required for us to face the problem, articulate them, and figure out how to massacre them in the most effective and efficient formation. 

The Truth is above the Hierarchy

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The solution to insecurity is diversification, it's reasonable to be insecure when you're only attached to few sources of income. Again keep in check that the insecurity wouldn't spread or escalated into some bad policies, also damn, the bad policies could come in the form of unwritten consensus and this is a problem to scrutinize (it could give a sense of belonging too which is even crazier).

Here in Indonesia the Government under President Jokowi together with the Legislative has created an OMNIBUS constitution which then give birth to 2 small enterprise specific rules PP 7 and PP 8, 2021. Under these making a company in the difficult way is a thing of the past, and anyone including employees like those portrayed as helpless and powerless always in the media were empowered. They could create companies of their own and the regulation arranged for their "grace period" in order for them to become competitive enough. 

I'm telling you guys even me myself has already a company of my own and the government is waiting to give companies like mine facilities, tax breaks, priorities, credits, assets, and other benefits. 

Lesson acknowledged

When a big counter momentum is hitting us, blame game is only for instant results otherwise don't.

Like every action has the opposite reaction, upon every good deeds you must identify for bad inclinations

I hate that the state of the world is in such a blatant crisis, but it must be the cost of our achievements that have exceeded historical expectations. We shouldn't let negative emotions overwhelmed us, we shouldn't be discouraged. This time we must recover, come back even stronger with a better budget, better anticipation. 

So everybody let's make things even better :)

Further on the debt of the economy

 So in order to reduce debt that's in opposition of innovation, debtors are penalized by innovation caused deflation, you'd change t...