1. Introduction — What Kind of Structure Do Assets Have? In this post, we turn our attention to the forms (structures) that these generated assets take on within the BS, and how they can be systematically classified into types—specifically, into eight distinct movement types organized across four structural quadrants. Assets are not merely “things” or “money.” Rather, they…
Month: May 2025
Structural Analysis (1): The Genesis of Assets — Where Stock and Flow Begin
1. Introduction: Where Do Assets Come From? Where do assets come from? This fundamental question lies at the very origin of balance sheet (BS) analysis. In order for an asset to “move” on a BS, it must first exist. But how does it come into being? This article begins by exploring the genesis of assets —…
The Three-Layer Balance Sheet Framework — Interpreting Through Domain, Structure, and Relation
A conceptual framework to decode the world through balance sheet thinking—across domains, structures, and relationships. 1. Introduction: The Expanding Scope of BS Thinking In the past three posts, we explored the following perspectives: ・We introduced three analytical lenses—domain, fiction, and relation—as fundamental to interpreting the structure of the world. These three perspectives form a dynamic…
The Dual Structure of the Balance Sheet: Fiction and Stock
1. The Dual Structure of the Balance Sheet: Stock and Flow In general accounting, the balance sheet (BS) is often described as a “stock” statement, capturing the financial position of an entity at a specific point in time. In contrast, the profit and loss statement (PL) is a “flow” statement, reflecting the changes in revenue…
The Fundamental Structure of the Balance Sheet
In the previous post, we introduced three perspectives—Fiction, Domains, and Relations—as frameworks for understanding the world and shaping the future in a meaningful way. In this post, we present the basic structure of the Balance Sheet (BS), a highly effective tool for applying those three perspectives to gain a bird’s-eye view of the world. We also introduce…
Three Perspectives That Change How You See the World
In today’s world, events unfold rapidly, and information is flooding our lives from every direction. With the rise of social media, fake news spreads like wildfire, making it increasingly difficult to distinguish truth from fiction. We seek to understand what is happening in the world and what truly matters, yet fragmented information alone cannot provide…