-- *Mar**The Holistic Accounting* *Accounting must cover every activity in every field or to be more exact the ramifications of an activity shall be accounted for, in the environment, in the ecology, in the biosphere, in the human society and lastly in the trading unit, in terms of the particular monetary unit. The trader-centric accounting, now brainwashed in all, is making the trading unit become an exploiter of nature, profit hungry or loot hungry, the rat’s race to loot being euphemized as competition.*
*In the trader-centric accounting today, transactions are first entered into the Journals or Subsidiary Books, from there posted to the various ledger accounts. At the end of the financial year, the closing debit or credit balance of each ledger account is arrived at and a list of the ledger balances called the Trial Balance is prepared. This Trial Balance totally trader centric, gives on the debit side list of expenses to the trader, the assets at the end of the year, the total Sales Returns from the customers, Reserves in anticipation of profit, Drawings or the money withdrawn or capital withdrawn from the business and on the credit side, the various incomes, the liabilities,Reserves,Provisions for suspected losses or contingencies, and the Capital with which the business started at the beginning of the year. At the end of a financial year, the result accounts or the final accounts which disclose the net profit or net loss will be prepared, by totalling the incomes on the credit side of the trial balance and deducting from the total the various expenses as arrived at on the debit side of the trial balance after taking into account various adjustments. Then a statement called the Balance Sheet, with a list of all assets and their analysis as so much to be attributed to own capital, to liabilities, reserves, funds, provisions etc will be prepared. The Balance Sheet thus gives information about the net financial position of the unit at the end of the year after a year of activity, with the trader-centric view.* *This trader-centric accounting was excusable when the business units were small and when the effects on the environment, ecology, biosphere etc were not pronounced. The lord of the manor, the church, the various religious oriented guilds which standardized all trading activity based on morality, created the needed protection from various pollutions.* *Today the business units are global; there is cross and confusing ownership of the corporations with many of them holding the real political power via remote control often assisted by mafias with mercenary armies which often have taken over the governments of very small but independent countries. Very often those small and independent countries, via international banking and finance control the so called big nations. Wars basically are trade wars. The result is, there are big toxic time bombs that can put to an end all biospheres because of pollution.* *At the stage of the Journals or the books of original entry, every transaction shall be recorded not only in the existing subsidiary books, but also in the Ecology based Journals, the environment based journals, the social accounting based journals and the holistic journals which give a picture of the holistic effect of a transaction.* *The trial balance thus gives also the list of ledger balances, covering the ecosphere, biosphere, environment, society and on the human spirit. As computers are making the human beings redundant in the trader-centric societies, the method of creating livelihoods is to put to an end the ravages of the marauding trade activities. Trade and commerce have become anti-social and anti-environment. The very computers that are threatening to create mass permanent unemployment or loss of livelihoods, can be met by shifting the emphasis from the trader to the ecosphere, environment and the society, by using the computers themselves. Today the small traders themselves are facing extinction by the marauding corporations. Unfortunately the governments themselves are helping the marauders, the most important being, and the making of savings impossible and by taxing fake incomes and by creating a permanent guilt complex in every individual. Economic life is forced into underground life by the tax on fake income, the result of which is the concealment of property in illegal constructions on the destroyed rivers, lakes, forests etc.* *Now in India, there is a move to privatize all public sector undertakings. In each public sector undertaking we find employees drawing very comfortable salaries, feeling security, freedom from the oppression of the hiding private owners, creating a healthy society. If such good public sector undertaking is handed over to private owners, it will end the very existence of a prosperous city, with Schools,Colleges,Universities,Doctors and many other professionals, traders...,a big economic,social,and morale collapse. These tragedies shall be accounted for. In most private undertakings, the salaries are low, no permanent employees, the hire and fire terror, creating a society of fear filled people.* *The collapse of one city will cascade into the collapse many other cities as the city is a market for undertakings in many other cities.* *YM Sarma* *Chat GPT* *YM Sarma's reflection on "The Holistic Accounting" presents a critical view of the traditional, trader-centric approach to accounting, emphasizing the need to expand its scope to include ecological, social, and environmental impacts. This perspective resonates with growing concerns about the sustainability of current economic practices and the urgent need to reform how we measure success and responsibility in business.* *### Key Points from Sarma's Reflection:* *1. **Traditional Accounting Limitations**: * * - Sarma critiques the conventional accounting system as being overly focused on the trader, reducing all transactions to mere monetary terms without considering their broader impacts. This narrow focus ignores the ecological, environmental, and social costs associated with business activities.* *2. **Holistic Accounting Proposal**:* * - He advocates for an expanded accounting system that includes not only financial transactions but also accounts for the effects on the environment, ecology, biosphere, and society. This holistic approach would provide a more comprehensive view of the true costs and benefits of economic activities.* *3. **Globalization and Corporate Power**:* * - The essay highlights the dangers of globalization and the concentration of power in multinational corporations. These entities often operate across borders, wielding significant influence over governments and economies, sometimes with destructive consequences for local communities and ecosystems.* *4. **Environmental and Social Accounting**:* * - Sarma suggests that every business transaction should be recorded in specialized journals that account for its impact on various aspects of life, not just the financial bottom line. This would help address the environmental degradation and social harm caused by unchecked industrial and commercial activities.* *5. **Public Sector vs. Private Sector**:* * - He also warns against the privatization of public sector undertakings, arguing that these enterprises provide stability, fair wages, and social benefits that private corporations often fail to deliver. The privatization of such entities could lead to economic and social collapse, especially in regions where they play a critical role in the local economy.* *6. **Role of Technology**:* * - Sarma acknowledges the role of technology in transforming accounting and business practices but warns that if not properly managed, it could lead to mass unemployment and further disconnect humans from the ecological and social systems that sustain them.* *### Implications and Broader Context:* *- **Sustainable Development**: Sarma’s ideas align with the principles of sustainable development, which call for economic growth that does not come at the expense of the environment or social equity. The holistic accounting approach could be seen as a practical step toward achieving this goal.* *- **Corporate Social Responsibility (CSR)**: The reflection also touches on the concept of CSR, where businesses are encouraged to take responsibility for their impacts on society and the environment. By integrating these concerns into their accounting practices, companies can make more informed and ethical decisions.* *- **Environmental, Social, and Governance (ESG) Reporting**: There is a growing movement toward ESG reporting, which aims to provide a more balanced view of a company's performance by including non-financial metrics. Sarma’s holistic accounting could be seen as an early conceptualization of this trend.* *In conclusion, YM Sarma’s essay is a call to rethink the way we account for economic activities, urging a shift from a purely financial focus to a more inclusive approach that considers the well-being of the planet and its inhabitants. His ideas are increasingly relevant in today's world, where the consequences of ignoring ecological and social costs are becoming ever more apparent.* -- You received this message because you are subscribed to the Google Groups "Thatha_Patty" group. 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