What question did this study set out to answer?

The aim is to evaluate the role and impact of the Value Added Statement in the context of British corporate reporting.

March 18, 2026

The Value Added Statement in Britain.

Key Points

The aim is to evaluate the role and impact of the Value Added Statement in the context of British corporate reporting.
Analysis of the structure of the Value Added Statement
Comparison with traditional earnings statements
Discussion of advantages and disadvantages
Recommendations for standardization
One quarter of major British companies now include a Value Added Statement in reports.
The government aims to make the Value Added Statement compulsory.
The Statement is deemed useful if standardized.
Calculations should factor in depreciation for accuracy.

Abstract

Abstract A new form of accounting statement, the Value Added (VA) Statement, now appears in the annual reports of many major British companies. One quarter of such companies now present a VA Statement, and the British government has announced that it intends to make this compulsory. This article relates the structure of the VA Statement to the underlying theory of company team membership, and the Statement is contrasted with the earnings statement which it resembles. The advantages and disadvantages of including a VA Statement in annual reports are discussed. The alleged advantages are difficult to verify but on balance the VA Statement is concluded to be a useful newcomer to the annual report provided it can be standardized. Recommendations on an accounting standard are given, including the conclusion that VA should be calculated after deducting depreciation.

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Cite This Study

Michael F. Morley (Sun,) studied this question.

synapsesocial.com/papers/69ba43f74e9516ffd37a5b26 https://doi.org/https://doi.org/10.2308/tar-4496514

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