Accounting for Value Added

Accounting for Value Added

A Reporting and Regulatory Framework

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Value added is a concept used in accounting and economics literatuer with a very close meaning. It signifies the value added by a company or a country during a certain period and thus very important for evaluation of performance. Conventional income statement doesn't report this and thus in UK, the practice of value added reporting starts with the publication of The Corporate Report. Later on, the concept of value added gained so popularity that companies in different countries started to publish value added statement voluntarily. The statement has two parts: first part deals with value creati...