This article admits the methodology of the reasons and proportions for the construction of theoretical models of performance of the patrimony, but without redeeming this methodology its traditional use in the accounting analysis to evidence patrimonial situations through disclosures as if the patrimony were stopped.
model-scientific-accounting-measure-functions-heritageTheoretical accounting models reflect conditions in which the patrimonial phenomena occur producing efficiency and constitute an excellent criterion for issuing reliable opinions, by requiring confrontation between a parametric base and a reality. Here, the ratios and proportions must adhere to a systematic regime, respecting the interactions between the functions and displaying an understanding of the heritage on the angle of holism, linked to their surroundings.
Keywords:
Accounting model, theoretical model, quantitative model, Ratios and proportions, accounting analysis, disclosure of the accountant, opinion of the advisor, opinion of the consultant, Accounting Neopatrimonialism.
INTRODUCTION
The review and disclosure of profitable results based on the accounting record requires a medium level of knowledge, while the study of the essence of profit requires a deep foray into the scientific field of accounting for which the information constitutes just an instrument. The new theoretical applications from the higher technological level, known as "behavioral models", are very useful to guide the movements of capital.
A paradigm or model must represent an objective that must be achieved or be a desirable state of occurrence of a certain phenomenon. The theoretical scientific models are dedicated to showing which are the relationships involved in a field of universal phenomena that serve for any entity anywhere, at any time referred to an intended reality
The first models were empirical, almost always obtained from comparative ratios with others, already by sectors of production, now between congeneric businesses, etc. Thus, in the textile sector, for example, it was admitted that prosperous industries obtained a liquidity ratio between 1.6 to 1.8 and thus then, in this modal occurrence would be the paradigm. In reality, these liquidity measures (current assets / current liabilities) do not depend on the amount of the monetary value of the assets applied to the payment, but on the adequate speed of rotation of these in relation to the needs to pay.
This first attempt on isolated financial ratios, although based on non-scientific, direct and percentage elements, with statistical support, had its utility and aroused interest in measurement standards. Given that these measurements were not sufficiently explanatory and the question that always remained in the air referred to "what was good" or "what is the best quotient", the advance in the field of accounting analysis gave rise, therefore, especially, to the need to obtain parameters or standard measurements
A scientific model is built from its own line of thought, which arises at a certain opportunity, to make a precise observation, on certain fields of well-identified phenomena. Therefore, in a scientific accounting model it is necessary to refer to the appreciation of a correlation of factors, to the logical judgment on the essence of the patrimonial phenomena and, if applicable, the ability to generate profits from everything that may influence about her.
What differentiates the neopatrimonial method from the others is, exactly, the intellectual commitment to the analysis of all logical relationships of an essential nature (need, purpose, means, organization, centers of activities and patrimonial functions), dimensional (cause, effect, time, space, internal environment, quality and quantity) and environmental (market, national income, productive sector, monetary, exchange and fiscal policies, technology, economic situation, etc.).
DEVELOPING
THE EFFECTIVENESS OF ACCOUNTING MODELS
The foundation of universal theoretical models are logical constructs, although in reality they confront a significant number of variations and can only rarely be demonstrated with absolute precision, as is also the case with the Principles referenced in the natural sciences.
Let us take the following logical proposition as the basis for a universally applicable theoretical model for profit management: “the amounts of technical fixed assets, product inventories, sales and net profits, must keep constant proportional relationships among themselves for a effectiveness".
In mathematical notation, we will have:
This proposition tells us that under normal and logical conditions, increased investment in means of production (It) implies increased sales (Y) and these, in turn, increased profits, (Ik), all of which should occur in constant proportion (in theory).
In other words, in productive capital investments for fixed and current assets, there must be a constant proportionality relationship to achieve an effective result of the equity system of results, in which the net profit is on sales, like sales. they must be for the total investment in productive capital.
As in the aforementioned case, in order to achieve greater efficiency in management, understood as “the ability to generate profits”, it is necessary to build “performance paradigms” from the accounting analyzes of the “results systems (earnings, sales and investments in means of production) ”, considering in each case the conditions of each component whose objective is to satisfy the needs of the effective increase of the capital of the company from its very transformation.
It is equally likely that special situations will occur in terms of quantitative expressions of value between "investments in means of production" and "sales" according to the velocity of capital in the processes of yield formation, as in the case of sales arriving to be greater than investments, that is:
Or as in the case of the expression that relates the increase in investments with the increase in sales when it is greater than that existing between the increase in sales and the increase in profits:
Therefore, many situations may suggest calculations derived from the establishment of accounting models, but due to the simple fact that variations occur around it, none of this invalidates the philosophy of the universal model for profit management.
At this point, still, a subsequent analysis is required about the mode of interaction and integration of those elements that promote the patrimonial phenomenon, that is, it is necessary to establish the "functional correlations" of the performance components before the other patrimonial functions in each entrepreneurship, The Patrimonial Functions
The patrimonial functions operationalize the movements of wealth. As the movement causes successive mutations or transformations, the case of application of quantitative paradigms in accounting must be observed with relativity (this gives rise to produce models on various observation angles in the field of phenomena on which we are).
As the patrimonial means exercise diversity of utilities, they also display “diverse functions”, hierarchically subordinated as the nature of the needs, as follows:
- Basically: the capacities to Pay (liquidity), obtain profits (profitability), maintain balance (stability), have vitality (cheapness) In an auxiliary way: Protect yourself against risks (invulnerability), be efficient or produce adequate profits (productivity) As supplementary goal: competently dimensioned (elasticity), contribute as an agent for the environment (sociability)
Such capabilities of the media to generate uses with which to satisfy needs are those that justify the existence of each of the systems of patrimonial functions, capable of assuming models of effectiveness (paradigms of satisfaction of needs in each one)
Every time a company is studied, it is necessary to analyze the effectiveness of each of the eight function systems, that is, measure their comprehensive ability to function effectively. A company may have a good ability to pay, and not have profit capacity, it may have the ability to generate profit or profit and not have the ability to pay, it may not produce waste but not generate profit, or it may be profiting very well without having good productivity.
An efficient system of functions tends to positively influence other systems and, these on others, in a regime of reciprocity and integration. Thus, for example, if a company increases its profits, it tends to have more resources to pay per day, if it pays per day it begins to have greater possibilities of obtaining greater profits, greater opportunities to make purchases and greater opportunities to hire better qualified personnel. This correlation of efficiencies is called a perfect interaction.
Criteria of the Models
The application of the assets of each tax system structures functions in which two components intervene:
- The own and specific needs that set goals of satisfaction to the enterprise. The patrimonial means or assets that supply the uses of the operation.
The confrontation between means and needs generates results that by nature should be effective, that is, the patrimonial means must exercise competent functions to cancel the needs of each tax system.
In the Results, for example, the means represent the sum of the cost of the product and the remuneration margin of the applied capital, on the one hand and, on the other, the need, is the income that allows to recover the cost and brings with it the margin. The convenient cost defines the capital investment that has the conditions to offer competent products to the concurrence of other buyers and, also, supports a rate of remuneration to the company that is part of the formation of convenient sales prices. The effectiveness of the system of results arises when the need for income is satisfied in such a way that it provides the company with the values of recovery of the investment in costs and also covers a satisfactory margin of remuneration of the capital applied.Each component of the estate provides various utilities or services, that is, various functions.
Likewise, the patrimonial needs (Pn) are renewed after each satisfaction tending to derive a new need, these tend to infinity, that is, theoretically, in mathematical notation:
Ideally, there is an efficiency (Ea), which occurs when the patrimonial needs (Pn) are satisfied (Pn = 0) and that the continuity of such event is unlimited, resulting in prosperity (Ps). In notation, this is written:
A system model of patrimonial functions (S), therefore, must consider the existing reasons between a resultant of it (Rs) and the known needs (to measure a relationship between the functional effect and the capacity exercised before the need), it must also consider a correlation between means (Pm) and capital needs (Pn).
In other words, "the result of a system of patrimonial functions (Rs) must be effective in relation to the pertinent patrimonial needs (Pn), as well as the means (Pm) must be sufficient to cover what is necessary patrimonially"
THE SCIENTIFIC MODEL OF THE FUNCTION SYSTEM AND THE METHODOLOGY OF THE PROPORTIONS
The proportion suggested by Accounting Neopatrimonialism does not refer only to exclusive reasons in terms of magnitudes, but also includes other considerations of a logical order of a correlative nature. The proportions follow the logic of identities but on a holistic nature approach, that is, these are not limited only to the aspect of size itself, but with everything that influences it.
Thus, for example, in the Liquidity System, it is necessary to analyze:
- Debts and disbursements, such as equity needs for payments, Cash resources, credits receivable, provisions for goods intended for sale, which are financial resources or means to cover payments and, What results from the confrontation between such components of the system.
A scientific model of the system of patrimonial functions suitably structured for reasons and proportions of systematic functional relationships of efficiency directed to prosperity, should be considered as effective (which cancels the need), becoming an instrument for measuring a reality to be achieved with based on identities of relationships between assets (as required by the logic of proportionalities) selected (liquidity, production, sales, earnings, etc.).
It is important to bear in mind that a result of the system of patrimonial functions shows how a relationship occurs between the patrimonial elements that are used and how they will behave to cancel the needs, which can result in something satisfactory (effectiveness) or not satisfactory (ineffectiveness).
When it comes to the application of proportions as a methodological option, when establishing direct relationships between a resultant and the means, the objective will always be to know the behavior of the resultant before the components of the system and, still, it will be necessary to evaluate what is It achieves with what is available of patrimonial means (functions exercised) in the face of existing needs; that is, the confrontation between the result of a system and its components (needs and means) and a rational resource for measuring the "effectiveness", the result, the effort made, to cancel what was needed and fulfill the intended ends. An expression, then, could be:
Which, in words, says: "The result (RsSx) of a system of any patrimonial functions is to the pertinent patrimonial needs (PnSx) as well as the patrimonial means (PmSx) are for the patrimonial needs of the same system".
Thus, for example, a result of the liquidity system (RSL), is to the needs that are required (Ex) in the short term, as well as the available and realizable means (D + R) are for the needs that are required in the short term.
The resulting (liquidity) will measure relatively what has to be paid (Exigibilities), as well as the patrimonial means (Available and Achievable) does so with its behavior in the face of the pertinent needs (Required in the Short Term)
The effectiveness of the liquidity system in a certain time implies the cancellation of the relevant enforceability at the same time. This implies that the effectiveness of liquidity will always occur when the payment needs can be covered, promptly, by the means of payment, without anomalous variations occurring between the elements in comparison (such as, for example, a difference between a variation of the quotient of liquidity and the variation of requirements in the short term.
It is not enough that the means exceed the needs, it is necessary that such an event occurs promptly and in harmony with the variations between the components of the system and the resulting one. In other words, there will be efficiency in any activity center (a subsidiary for example), if in time "x" (one semester, for example) the result of the system behaves like this. That is, an increase in the liquidity quotient (implies the cancellation of the increase in the amount due ((the debts will not grow proportionally), therefore, a special efficiency occurs (Eae):
Such consideration is equivalent to the occurrence of the phenomenon of full temporary liquidity, but it is not the result of just quantitative considerations, since it includes these and those spatial and temporal relationships. As can be seen, what Accounting Neopatrimonialism establishes as an objective cannot be a simple division between magnitudes to find relationships, but beyond this, it is interesting to know all the elements that influence the relationships of the patrimonial components of a specific system, based on the proportionality that implies a dynamic and holistic vision.
Obviously, the referred paradigm will be much closer to reality, the more the fields of dimensional and environmental relationships considered in its construction. Thus, for example, in the Result System, although a model for the effective management of profit is, by essence, a desirable situation to achieve, based on ideal relationships and, always, of a theoretical nature, its materialization or not, of the same, is something that will be subject, in all cases, to a significant number of variables. In the same way, in practice, the increase occurred in the elements of the liquidity system that is in a constant and mandatory correlation, their combinations can give rise to certain discrepancies that break the mathematical rigor suggested by the model.
A look at the effective states of wealth must be derived from one that considers ideally desirable purposes in terms of the behavior of wealth. It is natural that the increase in productive assets makes the production volume grow and reduce unit costs, thereby increasing the profit margin, assuming the same market capacity to acquire the increases in production.
Consequently, when an analysis follows a paradigm, the most appropriate opinion on the behavior of a heritage is issued from an expected behavioral regime, but also comparative and inclusive, and must express a full capacity to satisfy all heritage needs. of the company or the institution, permanently.
Generalization of the model
As has been said, a hacienda requires having the appropriate patrimony to support the following capacities: pay, earn, counteract, survive, protect against risk, avoid waste, assume the appropriate size and agree with transforming agents. Likewise, it was said that these capacities make up eight great systems of functions of the patrimonial wealth:
A comparison must be made to each of the referred aggregates (as already explained in the case of liquidity) between:
Thus, for example, regarding the Profit Regime, once again considered, the Model focuses on:
That is, the Net Profit () as a result of the system, is the Sales (Y) (these are necessary as recovery of the investment, increased by the profit), as well as the Sales (Y) are for the investments in production (It), these as needs to get the result.
In other words, “You must profit proportionally to sales as you must sell proportionally to what is invested in production. If sales increase, profits must follow the growth trend, if investments in production (fixed and current) grow, sales must follow the same rhythm.
No exemplified fact of the "Result System" would consider the Net Profit adjusted for all the factors that weigh on the original benefits of "goods or services sold", but for this purpose the calculations would be those carried out in scientific studies, thus leaving aside other aspects such as, for example, the tax or official regulations that can distort the accounting reality.
The model could also obtain another type of relationship, as a criterion, for example, a resultant in ratio (reciprocal) of the means and these in relation to the needs (It / Y), (always on the holistic perspective or of the relations patrimonial logics of an essential, dimensional and environmental nature. It depends on the logic, the methodology (as already mentioned) of what is intended to be found for the orientation of the analysis, that is, the perception that is intended to have. In any case, still what was suggested obeys the logical rigor of comparing what was achieved with what was needed to achieve.
Global Efficiency Hypothesis
The global judgment on the situation of a company or institution through the accounting elements, depends on the examination of the effectiveness of all the systems of patrimonial functions. Global effectiveness will exist when all the needs of the venture are satisfied or nullified.
The effectiveness of each system contributes to the global one, through its participation as adding to the sum of all. When at a certain moment the systems of liquidity, results, stability, economics, productivity, invulnerability, elasticity and sociality are effective, thus evidenced by the results of each one, then there will also be global effectiveness, represented by the sum of all systems.
As each of these functions is autonomous (there may be liquidity and there is no profitability, there may be profitability and there is no liquidity, etc.), thus the effective totality can represent a full quality. The subjection behavior of the resultant in relation to the needs in each system has the same subjection behavior of the media in relation to the needs, as does the summation of the resultants of all systems for the satisfaction of all the needs.
Based on all these logical arguments, it is possible to structure a global model hypothesis, as representative of a synthesis, as follows:
Where it says that: “the sum of the Resulting (Rs) of all the Systems (S) to the sum of the relevant patrimonial needs (Pn), as well as the sum of the Patrimonial Means (Pm) in all the systems (S) it is for the sum of the needs (Pn) which implies the cancellation of all the needs, logically implying, the Total Efficiency (EaT) "
Thus, therefore, the evaluation of each of the capacities that are exercised by the systems will always depend on the consideration of a competent use of the patrimonial resources in the face of the needs. It is therefore possible to conclude that the role of an accounting consultant when studying the functions of a company or institution should start from the analysis of each system, but with a view to considering it globally, as well as the circumstances of the causal agents that modify the statements. patrimonial.
CONCLUSIONS
Theoretical model and quantitative model
All the models so far evidenced as being theoretical, qualitative, tied to the essence, offer generic orientation. The theoretical condition and a guide of general order makes it keep its logical reasons under the auspices of efficiency and prosperity, as essential purposes, for that reason they are scientific. An accountant should be interested in whether they apply by nature to the entire company or institution, wherever it may be at any time. From such positions, and therefore, not to see them as a set of evaluation alternatives, a consulting accountant should start to find the reasons that support the orientation that he should offer to an entrepreneur, When we admit that the net profit is proportionally to Sales as well as Sales are to investments in production, we establish a qualitative, theoretical, generic, scientific model that proclaims a relationship that must exist between the stated factors. If later, we translate such a proportion into monetary values by setting the “quantum” of net profit that must be expected for a “amount” of fixed sale and a “certain amount” of investment in production, we will establish a quantitative model that will only serve for one application chosen as a particular case.
The quantitative model of a shopping center would have a different expression in a shipyard, as that of a bakery would have it in relation to a gearbox and this in relation to a boutique. There would also be alterations in relation to the place, the paradigm of a mattress factory would be different from one place to another (it is enough to cite as an example, some different factors in these activity centers, such as natural environment, ethnic conditions, social organization, etc. political maturity, educational tradition, ethics, market, tax burden and interests The theoretical model would be the same, but the quantitative one would be altered in our referred examples.
The quantitative must be considered within the probabilities of events that typify realities, therefore having a relative aspect. A strong influence of risk, that is, the problems of uncertainty that afflict the patrimonial movement, requires good sense, appealing to the probabilities of our quantitative models (relevant fact in the Theory of the System of Invulnerabilities of Neopatrimonialism).
In the case of profit forecasting as a management instrument, accounting models constructed to typify the past present behavior of a certain management are usually used. The consideration of a theoretical situation of performance referred to a projected term differs from that applied for the construction of models of behaviors necessary to explain the present movements. Since the life of companies is the result of countless variables, very long-term prospects can lead to inappropriate models.
The errors indicated by the differences between model and reality, can occur both in the structure or composition of the heritage, as in the dynamics or process of movement of this. Excessive or deficient investments, excessive financing or lack of financial resources, are common failures that lead to structural imbalances in assets. The slowness in the rotation of inventories, deficiencies in the collection of credits to be received, erroneous procedures in our production methods, all this can cause dynamics failures that aggravate situations.
Definitely, inflexibility is not a good adviser when the phenomena under consideration are full of complexity (such as patrimonial ones), subject to innumerable variables and to each nature of organism in its spaces and times (this is also the case in the psychological and biological sciences).
Starting from quantitative scientific models, it is possible to locate signs of all the aforementioned imbalances. An inquiry into the reasons for structural or functional ineffectiveness is a crucial task in the opinion of an analyst. The statement about a patrimonial state, a system of functions, as well as an isolated element, requires finding reasons that support it.
Variations and the opinion of the accounting consultant
The factors of the outside world that move wealth are subject to a large number of influences that no matter how much accounting technique you want to use, there will always be the risks of "biases and deviations" in their measurement. The greater the number of possible attributes to establish on a certain patrimonial event, the more competent the judgment in question tends to be.
The variations that the elements of the formulas and axioms undergo can alter the structure and dynamics suggested by a relevant accounting model. It is not a question of clearing up doubts, or of validating the forecasts or truths of the accounting models, but rather of logically reconciling the conditions on which they are applied and how their contents are harmonized.
In the case of hidden or hitherto unknown circumstances, certain accounting experiences can be corrected by means of the rational conclusion of other patrimonial experiences whose objective reality may have a greater scope.
The constructs that base the logical propositions of constant proportionality for the efficiency of the performance are conditioned in quality and quantity by the restrictions on the environmental environments of the heritage and the operations centers, all related to what may occur on the causes or effects through time. That is the reason for the complementarity of the cause and effect of countable phenomena due to dimensionality, giving depth to perception and making judgment about what happened more efficient.
In companies with long production cycles (such as forestry, construction, etc.), for example, the appearance of the accounting information may indicate a temporary deficiency, but this tends to be reversed when the sale that was in the process of formation or of production. The same will happen with a company in reorganization or modification of product lines or development of new commercial premises.
Observing that something differs from a model is just an indication, to form an opinion to be offered by a consultant. Obtaining quotients, indices, proportions, statistics, etc., by themselves, do not represent a global conclusion, being only instruments aimed at satisfying understandings that should support opinions. The parameters have the rare importance of producing images of ideal states but they hardly show a reflection on the reality derived from the course of the patrimonial elements. Rather, exerting more in-depth verifications on the deviations of the qualitative models we will get closer to the causes objectively. "That the qualitative model as an idea, whether or not it has been materialized, is a resource that only science can offer, demanding knowledge of a doctrinal and experimental nature."
The philosophy of Holism is a focus on the continuity of undertakings that requires the global observation of a whole from the perspective of a harmonic movement. “The method inspired by holism requires the global observation of the patrimonial wealth from the essence (need, purpose, patrimonial means and functions), in all its dimensions (cause, effect, time, space, quality, quantity) and environments (internal and external) that have influence as agent forces that move wealth ”.
The sequence of technical work that an accounting consultant should develop should be:
- Select qualitative theoretical models Quantify the theoretical models chosen within reality Consider the probabilities in the quantifications Collect data on the relevant manifestations Compare the quantifications with the actual or evidenced realities Consider the factors of mutations, especially the agents that produce the transformations of the heritage Establish the variations of the comparisons and Search know the reasons for the variations
BIBLIOGRAPHY
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