Back in Section Three of Work-Standard Accounting Practices (1^st Ed.), I outlined a basic conceptual model for how to understand, standardize and formalize Command-Obedience Account Bookkeeping (COAB) for the Work-Standard. The purpose of COAB is to facilitate the allocations and transmissions of Arbeit and Geld between the State, Totality and Self as part of the LER and LERE Processes. In MTEP, Accountants and Economic Planners process those allocations and transmissions in financial ledgers containing the Worksheet of Sociable Accounts (WSA). The official record of the WSA, which all Enterprises and Guilds must provide to the State Banks for the Central Bank to later register to the Life-Energy Reserve, is kept by the Economic Planner of an Enterprise or Guild. The decision to elaborate on COAB in relation to MTEP has proven to be vital as this three-part Entry could not have otherwise been done without the preceding completion of Work-Standard Accounting Practices (1^st Ed.).

In serious and practical applications of the Work-Standard, there will always be those Enterprises where the contributions of Arbeit and Geld do not come from the production of goods, the rendering of services, or the transactional sales for those goods and services. Some Enterprises may not always be contributing just Actual Arbeit and Actual Geld; they may also be contributing Digital Arbeit and Digital Geld, Military Arbeit and Military Geld, both or even all three main types of Arbeit and Geld. At the same time, there could even be other Enterprises where a large proportion of their contributions of Arbeit and Geld were the results of State Investments, Work-Tenures and other NSFIs like Fiefs and Work-Plans, Economic Socialization (ES) or Economic Foreignization (EF).

For Accountants, the challenge has been to categorize where and how a given Enterprise contributed Arbeit and Geld to the Life-Energy Reserve. The solution was to establish two accounting techniques for COAB, to be used in conjunction with the WSA as part of the LER and LERE Processes. Those are 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”).

Accountants are expected to determine which of the two techniques are most appropriate when determining the contributions of Arbeit and Geld to the Life-Energy Reserve among various Enterprises:

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 LEBM Technique is the primary method employed in COAB by Accountants as part of MTEP. Everything that occurs in the LEBM Technique can be summarized as a seven-step procedure. The NSBM Technique, on the other hand, accounts for more than just the three main sources of Arbeit and Geld. As State, Social and Student Enterprises specialize in different types of Arbeit and Geld and interact with each other and with Foreigners under Real Trade Agreements (RTAs), we can expect the NSBM Technique to become more relevant for Enterprises occupying the higher rungs of the Social Ranking System. For Guilds and Enterprises in the lower rungs of the Social Ranking System, the LEBM Technique is more than sufficient for their Accountants and Economic Planners.

Another notable distinction between the LEBM and NSBM Techniques is that the latter is more complex and can include additional steps. Unlike the LEBM Technique, which will always be a seven-step procedure, the NSBM Technique could have as many as fifteen individual steps.       

Procedural Steps of LEBM Technique

1. Find the Quality of Arbeit (QW) and the Final Quality of Arbeit (FQW)
2. Find the Quality of Geld (QM) and the Final Quality of Geld (FQM)
3. Determine the Attrition/Inaction Rate (AIR)
4. Find the Total Economic Potential (TEP) and the Real Total Economic Potential (RTEP)    
5. Find the Total Financial Potential (TFP) and the Real Total Financial Potential (RTFP)
6. Find the LER Account as the sum of RTEP and RTFP
7. Determine the National Account, Social Account and Household Account on the Obedience Side from the combined sums of TPP, LER, and SI-EF Accounts on the Command Side

Procedural Steps of NSBM Technique

1. Find the Quality of Arbeit for the VCS Economy (QW₁), the SSE (QW₂), Reciprocal-Reserve Banking System (QW₃), and the Council State (QW₄)
2. Find the Quality of Arbeit for International Trade (QW₅). All foreign sources of Actual Arbeit from RTAs and Military Arbeit (WAF) from the Military-Industrial Complex are to be found here
3. Given the values of QW₁, QW₂, QW₃, QW₄, and QW₅, find the Final Quality of Arbeit (FQW)
4. Find the Quality of Geld for the VCS Economy (QM₁), the SSE (QM₂), Reciprocal-Reserve Banking System (QM₃), and the Council State (QM₄)
5. Find the Quality of Geld for International Trade (QM₅). All foreign sources of Actual Geld from RTAs and Military Geld (MAF) from the Military-Industrial Complex are to be found here
6. Given the values of QM₁, QM₂, QM₃, QM₄, and QM₅, find the Final Quality of Geld (FQM)
7. Determine the Attrition/Inaction Rate (AIR)
8. Find the Total Economic Potential (TEP)
9. Find the Real Total Economic Potential (RTEP)
10. If given Digital Arbeit, find the Electrified Quality of Digital Arbeit (EDW)
11. Find the Total Financial Potential (TFP)
12. Find the Real Total Financial Potential (RTFP)
13. If given Digital Geld, find the Electrified Quality of Digital Geld (EDM)
14. With RTEP and EDW as well as RTFP and EDM, find the sum of the LER Account.
15. Determine the National Account, State Account and the Communion Account from the combined sums of the TPP, LER, and SI-EF Accounts

Completing the WSA for the Central Bank

The WSA is split between the Obedience Side (“Accounts Receivable”) and the Command Side (“Accounts Payable”). The Obedience Side represents the sum values of the National Account, State Account, Communion Account, Social Account, Household Account, Domestic Account and Foreign Account. The values of those five are required by the Central Bank to know the Final TPP Value, which it will need to set the RPF Value for the State, Totality, and Self. Conversely, the Command Side contains the sum values of the TPP Account, LER Account, and SI-EF Account. Each triumvirate of accounts on the Command Side is needed to find the values of the National Account, State Account, Communion Account, Social Account, Household Account, Domestic Account and Foreign Account.

When implemented in practice, the WSA Account of any given Enterprise or Guild will have its Economic Planners and Accountants complete three of the following Accounts Receivable on the Obedience Side:

• National Account, State Account, and Communion Account → NSBM Technique
• National Account, Social Account, and Household Account → LEBM Technique

The result of this practice will have the WSA of any given Enterprise or Guild to leave four of the Accounts Receivable on the Obedience Side blank when disclosing their finances to Auditors or when Economic Planners deposits them to the State Banks.

• In the NSBM Technique, the Social, Household, Domestic and Foreign Accounts are left blank.
• In the LEBM Technique, the State, Communion, Domestic and Foreign Accounts are left blank.

The Explicit Intent here is to minimize confusion and miscommunication among the Economic Planners and Accountants when compiling the finances of individual Enterprises and Guilds.  

• NSBM Technique → State Enterprises (SAEs and SOEs) and Social Enterprises (SOEs and NSEs)
• LEBM Technique → Social Enterprises (NSEs and POEs or POEs and PDEs) and Student Enterprises  

State Enterprises and higher-ranking Social Enterprises in the Social Ranking System will rely on the NSBM Technique, whereas lower-ranking Social Enterprises and Student Enterprises will employ the LEBM Technique. The general rule is that the Economic Planners and Accountants must use either the NSBM Technique or the LEBM Technique while working for Enterprises with the corresponding Social Ranks. To ensure that Auditors, the Totality, the State Commissariats, Kontore, Central Planners, Council State, and Central Bank are all able to know the finances of the Life-Energy Reserve, Accountants and Economic Planners employ three types of WSA Financial Reports. These WSA Financial Reports are applicable to both the NSBM Technique and the LEBM Technique, ensuring consistent and straightforward reporting. These WSA Financial Reports are the “Workflow Statement,” “Income Statement,” and “Balance Sheet.”

When compiling the WSA of an Enterprise, Economic Planners and Accountants will begin with the Accounts Payable on the Command Side. They will focus on finding the LER Accounts, followed by the SI-EF Accounts, before finishing with the TPP Account. With three sets of Accounts Payable on the Command Side, Economic Planners and Accountants will be able to complete the Workflow Statement, Income Statement and Balance Sheet. All of the information found on the Workflow Statement, Income statement and Balance Sheet will be identical to the information on the WSA document!

Based on the conclusions posited here, all Digital Enterprises on the National Intranet are to be using the NSBM Technique instead of the LEBM Technique. It does not matter if the Digital Enterprise in question happens to be in the SSE or the VCS Economy; all Digital Enterprises must use the NSBM Technique. There are no exceptions to this particular Legal Duty for the Accounting Profession.

Categories: Digital Realm

Tags: Accounting, Digital Realm, Economics, Finance, National Intranet, Philosophy, Politics, Psychology, Socialist Finance, Technology, Third Place, Work-Standard, Work-Standard Accounting Practices