Work-Standard Accounting Practices (Pt. I)

Continuing with my review of the various formulas and equations I provided for the Work-Standard, I decided that some important improvements needed to be made in order to ensure greater accuracy and reliability of the accountant’s handiwork. I felt that the equation for TEP (Total Economic Potential) is more straightforward than what was presented in The Work-Standard (2nd Ed.), whereas the equation for TFP (Total Financial Potential) needed a slight, albeit significant alteration.

The variables for Arbeit and Geld from International Trade was made clearer, which I felt was too ambiguous and might have created unwanted confusion for those seeking to understand how “State Foreignization Investments (SFIs)” factored into the TEP and TFP Formulas.
A major issue that I think would become problematic in the future is how the second half of the Solidarity Rate (SR) is factored. Originally, the idea was to take the sum of Geld converted from Arbeit and Revenue, then multiply it to yield what deserves to be referred to from now on as the “Net Financial Product.” The problem with that approach is that it could result in some misleading outputs. Therefore, I decided to switch the placements of SR2 and Revenue to rectify it.

Categories: Compendium

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