A fable about

TRIPLE ENTRY BOOKKEEPINGTM

and other sci-fi adventures in
SUMPTUOUS ACCOUNTINGTM
on Parallearth

Created by Karl H Richter © 2018

Cover Image


Sumptuous Accounting is a movement for change,
taking a lighthearted approach to a very serious issue - fixing capitalism.


Download the full paper here.


ABSTRACT:

Triple Entry BookkeepingTM is an accounting methodology that incorporates the non-financial impacts of commercial transactions. These externalities, whether positive or negative, are by definition not reflected in conventional accounting methodologies, and therefore often excluded from market prices and asset valuations. Such omissions can result in market failure if price sensitive decisions are disconnected from their broader societal consequences.

Triple Entry BookkeepingTM corrects this imbalance by modifying both the debit and credit entries to reflect the externalities of a transaction. This has the effect of adjusting the perceived price for both the buyer and the seller, as well as the future purchasing power of market actors based upon their historic choices. It was inspired by studying the behaviour of social impact investors when they offer concessional capital pricing in anticipation of positive impact. This departure from the risk adjusted norms of modern portfolio theory is referred to as the implied impact of investments.

Triple Entry BookkeepingTM operates at the level of the underlying mercantile activity. It expands traditional accounting methodologies to integrate both positive and negative impacts, through a unified approach, across the full gamut of economic activity. It also includes elements of behavioural tax and money supply functions, and assumes a context of digital currency to enable the functionality of programmable money.

Download the full paper here.