MA.4:11 - SoTA-Echoing

The method distinguishes internal from externally required accounts and uses the inventory bridge discussed in Bragg’s Throughput Accounting (2007), printed pp.111–112. It adapts that explanation to explicit policies and actual settlements rather than treating a management view as a substitute for required reporting.

IAS 2 provides a relevant external-reporting comparator: inventory cost and its later recognition as expense have rules that differ from simply recording cash paid. Its applicability and detailed requirements belong to the reporting question. Here that distinction changes §§4.1–4.3 and the inventory example.

The movement account makes the same connection reusable across periods: the opening inventory and unsettled amounts survive into the next calculation, while policy determines which cost enters the result. The two-period example explains why a policy difference can reverse without becoming a receipt. Reopen the bridge when policies, balances, event meanings or the receiving period changes.