Previously, in Part I, Command-Obedience Account Bookkeeping was used to obtain the Statement of Self-Reciprocation, which we then needed to complete the three statements of the Financial Ledger. We established “Scenario 1998” as a simulated exercise to demonstrate how the Work-Standard can be applied in practice. Scenario 1998 was designed to offer a specific set of circumstances where Command-Obedience Account Bookkeeping can be used to account for the three main types of Arbeit and Geld: Actual Arbeit and Actual Geld; Digital Arbeit and Digital Geld; and Military Arbeit and Military Geld.     

The WSA Workflow Statement provided information on the general financial vitality of an Enterprise. The WSA Income Statement described where and how the Enterprise spent its Actual Geld with respect to its State Fund. The level of detail increased in the WSA Balance Sheet, where specific documentation on all known sources of Arbeit and Geld was stored. Not just the creations of new Actual Geld from conversions of Actual Arbeit or the transferring of existing Actual Geld, but also the Values of everything else that went into the creation of Actual Arbeit.

The implications of those financial statements should be readily apparent by now. Some Values were made known to the Accountant insofar as they had to be agreed upon by the Totality at the Tournament and enforced by the Council State at the State Commissariats. It is through those social relations that Prices are implemented. However, other Values have to be the direct results of the performance of the associated Enterprise and its Industry, while the rest are compiled from what the Enterprise itself already has as its Productive Properties. Nothing new was introduced; everything was derived from concepts and ideas discussed earlier in the Treatise and elsewhere.    

Part II continues Scenario 1998 by recognizing that not all types of Enterprises are limited to their main type of Arbeit and Geld. For instance, a Student Enterprise may be capable of contributing all three types of Arbeit and Geld just like a State Enterprise. To put it another way, a Student Enterprise primarily creating Actual Arbeit and Actual Geld is just as capable of creating Digital Arbeit and Digital Geld or Military Arbeit and Military Geld. This is of course one of the notable features behind the Work-Standard’s Production for Dasein, a feature that must be recorded by the Accountant through Command-Obedience Account Bookkeeping.      

Remember back in Part I that the focus was on accounting for the production of computer components by Pantzer Mechanical Parts? The State Enterprise was manufacturing them for another State Enterprise, Liebezeit Electronic Parts, which needed them to create computer electronics. After Liebezeit Electronic Parts produced the computer electronics, it later sold them to four Enterprises, all of which were mentioned in Part I.

Perhaps the most prominent is Grupp Family Workshops, a Student Enterprise that crafts customized PCs according to the specifications of its Customers. Using the computer electronics from Liebezeit Electronic Parts, Grupp Family Workshops built a number of PCs for the Stumpf Website Developer Cooperative, an emerging Digital Enterprise on the Germanic Intranet. It was Stumpf Website Developer Cooperative that oversaw the engineering of new Websites and Computer Servers for other Digital Enterprises, Patzel & Schlegel Defense Weekly and Oberbröckling Gaming Studios. Patzel & Schlegel was the online magazine that introduced us to Scenario 1998. Oberbröckling Gaming Studios, on the other hand, is a Student Enterprise creating Digital Arbeit and Geld as well as Military Arbeit and Geld. The latter came from buying one of Adalbert Munitions’ Work-Plans from Liebezeit Electronics at the Kontore.

Similar to Part I, it would be best to focus on one of those Enterprises and how they relate to each other and to Adalbert Munitions. For the purposes of Part II, we will be compiling and analyzing the financial records of Oberbröckling Gaming Studios. This Student Enterprise in particular offers a suitable basis to implement the LERE Process in Command-Obedience Account Bookkeeping.

Scenario 1998: SSR Review

Oberbröckling Gaming Studios was established as a Student Enterprise four years ago, in March 1994. The Student Enterprise represented part of an emerging Profession supported by the various Student Governments of their Nation’s Student Economies. With special emphasis paid to the tertiary education level, Student Enterprises in Europe, America, Soviet Union and Japan were established to develop video games for a variety of applications. Some believed that video games embodied the next step in the 20^th century’s trend of electronic Mass Media, coming after radio and television. Others insisted that they can become something greater than mere entertainment. The Reich Government has authorized the Student Government of the Germanic Student Economy to allow Students and Investors alike to invest in what is becoming one of the fastest growing Domains of the Work-World in the 1990s.

At the beginning of 1998, a vote was held inside Oberbröckling Gaming Studios to expand the Student Enterprise and open its economic activities to Investors. Given its past successes in the last four years, the Student Enterprise had attained the prerequisite Social Rank to participate in the Kontore. This Social Rank was recognized by the Student Government and upheld by the State Commissariats. Student Government decided on the promotion to the next highest Social Rank based on the Quality of Digital Arbeit and Quality of Digital Geld within the Student Tournament of the Student Economy. This occurred prior to paying for 12,000 watts of electricity usage.

In June 1998, Fiefs were sold to Investors at the Kotore for 16.72 GDM each. That same month, Oberbröckling Gaming Studios bought one of the Work-Plans that Liebezeit Electronics received from Adalbert Munitions. Valued at 3,400 GDM, the Work-Plan in question pertains to that aforementioned treaty from Part I, its Maturity Date scheduled for May 2003. The next month saw Oberbröckling Gaming Studios hiring Grupp Family Workshops to build and install new PCs as part of the former’s expansion of its internal operations.

Stumpf Website Developer Cooperative was hired by the Student Enterprise to design and implement a new Computer Website and Computer Server. The Economic Planner explained to the Digital Enterprise that the Student Enterprise is pioneering Video Game Industry-related efforts to implement a “European multiplayer game,” where anyone from outside the continent can play.

Oberbröckling Gaming Studios financed much of its expansion in the summer of 1998 by borrowing Interest-free Work-Tenures from the Reciprocal-Reserve Banking System. When August 1998 came, an Inspector visited the Student Enterprise as part of a scheduled Audit. The Inspector came to compare the copy of the Financial Ledger deposited at the State Bank and the original one. The purpose was to find any discrepancies in the finances reported by the Student Enterprise. Coincidentally, the first month of payments for the Work-Tenure had just come due.

The above table depicting the SSR was based on the information that I had just provided. Granted, there are plenty of other things that we cannot possibly know by relying on the SSR alone. What we can discern from the table, without going into specifics, is that Oberbröckling Gaming Studios underwent an aggressive, rapid expansion in the summer of 1998. By analyzing the Workflow Statement, Income Statement and Balance Sheet, we can come away with more specific conclusions about how this Student Enterprise was contributing Digital Arbeit and Digital Geld as well as Military Arbeit and Geld. We can also discover some unknown costs that cannot be found just from glancing at the SSR.

Scenario 1998: Financial Ledger Review

Each month, Oberbröckling Gaming Studios spends 720 GDM on electricity that it needs to use as part of its economic activities. The higher Values for Arbeit-into-Geld and Geld-into-Arbeit correspond to the higher Values associated with Digital Arbeit and Geld. Thus, the Quality of Arbeit and Quality of Geld stayed the same for the first two months. It was not until July 1998 that there was a significant increase in how much Arbeit and Geld was being contributed to the Life-Energy Reserve. We can infer from the Workflow Statement below that it was due to the 500 Fiefs it sold and the 1 Work-Plan it bought from Liebezeit Electronics on the Kontore. Selling 500 Fiefs yielded 8,360 GDM, of which that amount was used to buy the Work-Plan, leaving the Student Enterprise with 4,960 GDM. By August 1998, the Student Enterprise was scheduled to start paying 250 GDM each month for the Work-Tenure it had borrowed.

From the WSA Workflow Statement, we can deduce that the changes to the Life-Energy Reserve are not the result of the LERE Process vis-à-vis Digital Arbeit and Digital Geld. A portion of that had to have originated from the Work-Plan, which was how the Student Enterprise began contributing Military Arbeit and Military Geld. Remember, that Work-Plan was originally sold by Adalbert Munitions as part of a governmental effort to uphold the terms of that treaty mentioned in Part I. The fact that the Student Enterprise ended July 1998 with a Closing Balance of 46,800 GDM should be indicative that it had spent 6,000 GDM on top of the initial 720 GDM that it already pays for electricity.

Thus, assuming no other additional Revenues, Expenses or Spending were incurred on the Student Enterprise, we can argue that 250 GDM was spent on the first month of payments for the Work-Tenure that was borrowed from last month. Work-Tenures are of course of those Interest-free Loans that can be borrowed from special “National-Socialized Banks (NSBs).” Lender provides Actual Geld to the Borrower, the Borrower agreeing to pay a fixed sum of Actual Geld converted from their own Actual Geld.

As long as Oberbröckling Gaming Studios continues to pay back half of what it had borrowed with its own Arbeit, the lending NSB will agree to pay the other half with its own Arbeit. Put into practice, this means that Oberbröckling Gaming Studios must spend 250 GDM each month, and the lending NSB will spend 250 GDM. It is conceivable to envisage alternate arrangements where the lending NSB spends more or less on the Work-Tenure by dint of the Borrower’s Social Rank. Higher eligible Social Ranks may cause the affected Enterprise to end up paying a larger share of the Work-Tenure, with the lending NSB paying less. This is because the NSB can be assured that the Enterprise will be able to continue to pay as scheduled. Not to mention that the Reciprocal-Reserve Banking System was never meant to be the key driver of economic life to begin with.   

We can compile the information discussed so far to create a basic framework for the WSA Income Statement. If we know more about Oberbröckling Gaming Studios, we can flesh out the Income Statement further to include any other Revenues, Spending, Expenses, Outputs, Sales, Essential and Non-Essential Costs. This Student Enterprise had to develop other video games and sold them either domestically in the Tournaments or internationally in other Tournaments under a Real Trade Agreement (RTA). In both cases, the procedure is always the same because the purpose of the Financial Ledger is to record all known sources of Arbeit and Geld, including whether any new Geld was created and how much Geld was transferred across accounts due to transactional sales.

The more we know about the economic activities of any Enterprise, the more we can gather the rest of the of information to compile its WSA Balance Sheet. After all, much of the information found in the WSA Balance Sheet can be extrapolated from the WSA Workflow Statement and WSA Income Statement as well as vice versa. That is why it is especially important for Accountants to be familiar with their Enterprises, including where and how their Enterprises are creating Arbeit and spending Geld.

Unlike the WSA Balance Sheet from Part I, the one below has its LER Account include two separate columns of accounts for the LER and LERE Processes. The LER and LERE Processes operate independently of each other. Thus, they should have separate sets of accounts on the WSA Balance Sheet. However, any Military Arbeit and Military Geld is going to be added toward the LER Process as opposed to the LERE Process due to the nature of that type of Arbeit and Geld.

Moreover, any and all expenditures incurred on the Enterprise from its interactions with the Kontore and the Reciprocal-Reserve Banking System have to be recorded in the SIEF Account under the “LER/LERE Processes.” Most Enterprises will generally gravitate toward a particular type of Arbeit and Geld according to broader trends associated with their corresponding Industries. But that alone should not deter Enterprises of sufficiently high Social Ranks from engaging in other sources of Arbeit and Geld beyond their primary ones. All other expenditures, particularly those related to NSFIs, Work-Tenures, and Taxes, can also be found in the SIEF Account under “Financial Investments.”

Categories: Compendium, Work-Standard Accounting Practices

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