In “The Cash and Accrual Methods” and “The Modified Accrual Method” Entries from Section One, I discussed about the most prominent accounting techniques employed under Neoliberalism in both Production for Profit and Production for Utility. The Cash-Basis Method only provides information about how many Quantities of Kapital and Schuld that a privatized commercial firm earns at present. The Full-Accrual Method also tracks the Quantities of Kapital and Schuld, but does so on any given timeframe, which affects precisely when Revenues and Expenses are recorded.

One should recall that most Parliaments and economic organizations under Liberal Capitalism use the Full-Accrual Method, which is enforced by the “financial obligations” that are required of everyone involved in a given economic activity. What deserves to be mentioned here is that the Full-Accrual Method’s worldwide adoption coincided with the Death of Bretton Woods, the rise of Globalization, Financialization and Deindustrialization, and the emergences of Financial Technologies employed by the Fractional-Reserve Banking System.

Bluntly speaking, the Full-Accrual Method is employed in conjunction with the Fractional-Reserve Banking System. Its widespread usage was made possible by the fact that Liberal Capitalist regimes are now able to marshal immense sums of Kapital in exchange equally large sums of Schuld. Since Parliament, Civil Society, and the Private Citizen are now able to borrow more Kapital than what was previously possible during Bretton Woods and the British Empire’s Gold Standard, the Full-Accrual Method enables accountants to process and track the long-term movements of Kapital and Schuld between Fractional-Reserve Banking System on the one hand and Parliament and Civil Society on the other.

The trend itself is made discernible from the name itself. the “accrual” obviously refers to the Kapital Accumulation that occurs from maintaining the balance between Kapital and Schuld. As one might surmise from the increased borrowing and lending, today’s Parliaments, Civil Societies, and Private Citizens are now saddled with more Schuld than they were in the 20th century. Nobody knows just how much Schuld the Fractional-Reserve Banking System is capable of sustaining, but what can be said is that there are genuine limitations that manifest from the State of Total Mobilization itself. The environmental degradation, the resource depletion, and the implications of Climate Change are three notable indicators which the Fractional-Reserve Banking System is incapable of recording. Environmentalists are aware of this, but it is not like the entire Accounting Profession worldwide is fully aware of those implications.

Therefore, if the Cash-Basis and the two Accrual Methods (both Full-Accrual and Mixed-Accrual) are meant for Kapital and Schuld, designed for the Fractional-Reserve Banking System, and intended to be used in Double-Entry Accounting Bookkeeping, what will be the Work-Standard alternatives?

The criteria governing the Work-Standard accounting techniques are as follows:

• All sources of Arbeit and Geld gained or lost at any span of Zeit needs to be accounted for as they occur. They need to be registered as Revenues and Expenses of a National or Foreign Sector organization, be it a State Enterprise, a Social Enterprise, a Student Enterprise, or a Foreign Enterprise.
• They can be performed on all of three main variants of Arbeit and Geld in the LER and LERE Processes: Actual, Digital, and Military Arbeit and Geld.
• They must also be applicable to Enterprises able to issue NSFIs in the Kontore and receive State Investments from the Council State. Those sources need to be distinguished from the Geld that is normally allocated to the State Fund.
• They need to be able to accommodate the Economic Socialization (ES) and Solidarity Rates (SR). The Arbeit and Geld from one production process may be capable of facilitating additional sources of Arbeit and Geld in other production processes, creating a reciprocal feedback loop.
• They can accommodate the Convertibility Rate (CR), which affects the conversions of Arbeit-into-Geld, and thus used to readjust the Value of Arbeit in response to changes to the Attrition/Inaction Rate (AIR).
• Everything discussed has to be compatible with the Worksheet of Sociable Accounts, to be used by Accountants working for Economic Planners in applications of Mission-Type Economic Planning (MTEP).

Using Command-Obedience Account Bookkeeping in coordination with the Reciprocal-Reserve Banking System, there are two accounting methods worthy of mention here: the “Life-Energization Basis Method” (referred to from hereon as the “LEBM Technique”) and the “National-Socialization Basis Method” (referred to from hereon as the “NSBM Technique”).

The LEBM Technique and the NSBM Technique both follow a standardized set of operating procedures that pertain to a number of qualifying factors. Accountants are to determine which of the following procedures are relevant to their case as they will lead them to toward either the LEBM Technique or the NSBM Technique:

1. Workflow Principle: How much Arbeit and Geld is being contributed as Revenues and how much Arbeit and Geld were lost due to Expenses? Both LEBM and NSBM Techniques apply.
2. National-Socialization Principle: Are there additional sources of Arbeit and Geld beyond what an Enterprise contributes to the Life-Energy Reserve, such as State Investments, NSFIs, and Work-Tenures? If yes, use the NSBM Technique; if no, use the LEBM Technique.  
3. Dasein Motive Principle: Are all sources of Arbeit and Geld exclusively Actual Arbeit and Actual Geld or does a given production process include dual-purpose applications that would necessitate large-scale contributions of Digital Arbeit and Digital Geld and/or Military Arbeit and Military Geld? If yes, use the NSBM Technique; if no, use the LEBM Technique.  

The general idea behind the LEBM Technique is to record how much Actual Arbeit and Actual Geld is coming from the regular LER Process, transactional sales, and any additional secondary sources of Actual Arbeit and Actual Geld. This is meant to be contrasted with the NSBM Technique, which is meant to record all sources Arbeit and Geld from the both the LER and LERE Processes, transactional sales, and all other secondary sources of Actual, Digital and Military Arbeit.

The methodology corresponds not to the size and composition of any given economic organization but to their overall capabilities and their means of production, their Productive Forces. The more diversified and capable an economic organization is at contributing different types of Arbeit and Geld from a wide variety of sources, the more likely an accountant is going to use the NSBM Technique in order to properly account for everything.

The Social Rank of an economic organization within the Tournament of the VCS Economy or the SSE does provide subtle indications about which Enterprises will require the NSBM Technique and which ones just need the LEBM Technique. Enterprises with higher Social Ranks tend to correlate with increased capabilities of providing consistent Qualities of Arbeit and Geld whilst sustaining their production processes. Those with lower Social Ranks, when they are actually doing their best (based on what was discussed earlier in The Third Place), are not going to wield as many capabilities as the ones above them.

Note that the LEBM and NSBM Techniques place less emphasis on ‘When was Arbeit and Geld received or spent?’ and more on ‘Where was Arbeit and Geld received or spent?’. Instead of recording Revenues and Expenses under an allotted timeframe, both the LEBM and NSBM Techniques stress the need to record all Revenues and Expenses based on their “Relevance” and “Reference,” a key characteristic of Production for Dasein. In essence, accountants are supposed to focus on all primary Revenues and Expenses related to their production processes, followed by any and all secondary Revenues and Expenses unrelated to their production processes. Here, the “Relevance” concept from Production for Dasein comes into play whenever accountants are trying to ascertain why certain sources of Arbeit and Geld should qualify an Enterprise as fit for either the LEBM or NSBM Techniques.

In the next Entry, I will be combining everything that has been discussed in Section Three to discuss about the Financial Reporting process of Command-Obedience Account Bookkeeping. The goal is to demonstrate how the Accounting Profession under the Work-Standard prepares Balance Sheets, Financial Statements, and the Worksheet of Sociable Accounts for the Reciprocal-Reserve Banking System.

Categories: Work-Standard Accounting Practices

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